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Soon,we'll probably be backstopping the entire world. If you haven't read market-ticker or the forums,I would suggest that you do so. The people there have a better handle on this than I do and explain a lot to those like me who are economic dummies. I knew this was getting bad,but I didn't realize how bad
Oh No.... (Foreign Debt Bought by The Fed) - The Market Ticker (http://market-ticker.org/archives/631-Oh-No....-Foreign-Debt-Bought-by-The-Fed.html - broken link)
It seems that way. As of yesterday we are using 120 billion for currency swaps with Mexico,Singapore,Brazil,and Korea. The government wants to use an additional 50 Billion to guarantee 3 million mortgages.It looks like we'll be handing out more money to automakers in addition to the 25 billion they got last month. Where is the money coming from? What happens to us if the countries we swapped currencies with lose value in their currency? This has gone from stupid to utterly ridiculous.
Just the fact that neither McCain nor Obama are addressing this insanity goes to show that neither of them will do this country any good. It's a darn shame that with all of this madness the majority of our country is still fast asleep to the reality.
US social policy has been to subsidize housing for deadbeats, implemented through manipulation of the banking system and the money markets: US bankers packaged toxic securities, labeled them AAA, and sold them to the rest of the world.
(Sort of like the Chinese selling tainted toys and milk, ain't it? There are no saints in this world.)
I think central bank actions, and the actions of the Fed in particular, reflect the recognition that this policy has led to the paralysis of the private banking industry, so now, at least for time being, banking is a government-run enterprise.
South Korean car companies are major players in the US economy.
I mean, too a large extent now we are all one body, both the muscle and the infections.
To be sure, the two US presidential candidates have no clue, the next US government will be dominated by Congress, not the presidency, and the risk of the furthering and deepening of the infections is indeed high.
In any case, in the coming months and years, expect more mergers in banking, the automotive industry, airlines, and possibly other industries, first at the respective national levels, then increasingly cross-border.
in certain sense, the whole world is a looser EU with much tighter economic integration than what existing political integration is capable of handling. Integration means each and every country must cooperate and contribute together, lack of political integration results in politicians having to pander to the un-informed masses to get elected but having to renege the promises they made during campaign trail, which leads to less and less confidence the public has in the political system, which in turn gives rise to more populist hacks, the fact that even populists hacks must bow to economic reality after elected indicates further decrease of confidence in the system, the whole vicious cycle starts all over again. Until either a populists hack so populists he/she decides to go Hitler and completely shut off the economy or the population wise up to the fact that we are on same boat and choose to enact some sorts of political reform the reflects economic reality.
I am stunned at the actions of the treasury. It almost seems like they are racing to create hyperinflation
Hi jimmyP,
That's the name of the game, monetize. They will monetize the Whos' feast, the who pudding and the roast beast in a flash right down to the last can of who hash. Not many left in the US to go into debt.
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