Economic Crisis Watch

Bloomberg: Stephen Roach - 1/26/12

2012-01-29T23:26:00.000-06:00

King World News: Jim Rickards - 1/28/12

2012-01-29T23:21:00.001-06:00

Good analysis! Thanks 3gun.

King World News: Jim Rickards - 1/28/12

Germans float direct EU control over Greek budget

2012-01-29T10:22:00.000-06:00

Germans float direct EU control over Greek budget

Portugal 10-Year Government Bond Yield at Record High

2012-01-27T16:04:00.000-06:00

Portugal 10-Year Government Bond Yield at Record High

Obama Administration And Banks Near Deal On Mortgage Fraud Legal Liability

2012-01-27T15:56:00.000-06:00

Obama Administration And Banks Near Deal On Mortgage Fraud Legal Liability

Federal Reserve Chairman to deliver lecture series to college students

2012-01-26T16:55:00.000-06:00

Mark your calendars!

Federal Reserve Chairman to deliver lecture series to college students

Federal Reserve Board and Federal Open Market Committee release economic projections from the January 24-25 FOMC meeting

2012-01-25T17:06:00.002-06:00

No change to the current QE policy. QE will remain flat.

Federal Reserve Board and Federal Open Market Committee release economic projections from the January 24-25 FOMC meeting

Below is an update to the QE chart.

(Click on the Image to Enlarge)

Federal Reserve issues FOMC statement of longer-run goals and policy strategy

2012-01-25T17:05:00.000-06:00

Federal Reserve issues FOMC statement of longer-run goals and policy strategy

Fed Signals That a Full Recovery Is Years Away

2012-01-25T16:37:00.002-06:00

Fed Signals That a Full Recovery Is Years Away

Geithner: Obama Wouldn’t Ask Me to Stay in a Second Term

2012-01-25T16:37:00.001-06:00

Geithner: Obama Wouldn’t Ask Me to Stay in a Second Term

Gold for Oil: India and Iran Ditch Dollar – Report

2012-01-23T22:19:00.000-06:00

Gold for Oil: India and Iran Ditch Dollar – Report

Newt Gingrich: I supported Rockefeller over Goldwater and Climate Change

2012-01-23T22:06:00.003-06:00

Joint Statement by Secretary Geithner and Secretary Clinton Welcoming Additional EU Sanctions on Iran

2012-01-23T19:07:00.000-06:00

Joint Statement by Secretary Geithner and Secretary Clinton Welcoming Additional EU Sanctions on Iran

Treasury Designates Major Iranian State-Owned Bank

2012-01-23T19:01:00.000-06:00

“Today’s sanction against Bank Tejarat will deepen Iran’s financial isolation, make its access to hard currency even more tenuous, and further impair Iran’s ability to finance its illicit nuclear program.”

"To date, the U.S. has designated 23 Iranian-linked financial institutions under E.O. 13382 and E.O. 13224"

Treasury Designates Major Iranian State-Owned Bank

FOMC Meeting Preview

2012-01-22T20:23:00.001-06:00

FOMC Meeting Preview

NBC Does It Again: Blatant Media Bias to Ignore and Discredit Ron Paul

2012-01-20T18:22:00.009-06:00

Visit msnbc.com for breaking news, world news, and news about the economy

NBC does it again. At 3:00 into the clip, NBC takes the one goofy shot of Ron Paul from last night's debate and uses it in its coverage on tonight's evening news. Also, NBC uses the clip with the crowd booing to make it appear the boos are towards Paul; however, reality was the boos came from Paul supporters aimed at the CNN moderator. NBC doesn't even allow a single second of voice coverage of Paul. NBC ends the Paul segment by stating: "[Paul] struggled to assert his libertarian message." From this 3:49 NBC clip, Paul gets a total of 10 seconds.

View the clip below, to see the reality of the boos.

How can there be more evidence that the media/establishment is absolutely scared of Ron Paul; therefore, this man is the candidate for the People. A vote for anyone else is a vote for more of the same. If you find yourself saying to yourself "I agree with Ron Paul, but I can't vote for Ron Paul because he is unelectable," then I say to you that you are a victim of psychological brainwashing. The only reason someone could say he is "unelectable" is if some outside source implanted that thought. America must wake up, or this country will absolutely slip into an abyss of tyranny. I urge all to critically think, and make up your own mind. Do not let psychological conditioning determine the candidate that best represents you.

More lies revealed here: NBC Smears Ron Paul, He is "Jockeying for Attention"

Ron Paul Supporters

2012-01-20T18:19:00.000-06:00

Visit msnbc.com for breaking news, world news, and news about the economy

Greece presses EU to ease Iran oil sanctions

2012-01-20T17:47:00.001-06:00

Greece presses EU to ease Iran oil sanctions

New York Fed Sells $7.014 Billion in Face Value of ML II LLC Assets

2012-01-19T22:58:00.000-06:00

New York Fed Sells $7.014 Billion in Face Value of ML II LLC Assets

Ron Paul Twitter Poll

2012-01-17T15:43:00.001-06:00

Greece Dispatches Officials to US Over Default Fears; Senior S&P Official Expects Default Soon; Greek One-Year Bond Yield Touches 415%

2012-01-16T12:34:00.000-06:00

Greece Dispatches Officials to US Over Default Fears; Senior S&P Official Expects Default Soon; Greek One-Year Bond Yield Touches 415%; Ducks Lined Up for Merkel Orchestrated Default

EPA Land Grab

2012-01-16T12:29:00.001-06:00

Dick Morris FEARS The Ron Paul Revolution!

2012-01-15T16:05:00.000-06:00

"Dangerous"? Come on!

Colbert Super PAC Ad - Mitt the Ripper

2012-01-15T15:58:00.000-06:00

Funny.

Fed to Weigh Further Easing Amid Doubts About Recovery

2012-01-15T11:32:00.001-06:00

Fed to Weigh Further Easing Amid Doubts About Recovery

Greek 1-Year Bond Yield Tops 408 Percent; Hard Default Appears Imminent

2012-01-13T17:12:00.002-06:00

Let's just get this default over with.

Greek 1-Year Bond Yield Tops 408 Percent; Hard Default Appears Imminent

ECB Says Credit Crunch Averted; Yet ECB Overnight Deposits Again Hit Record High; Skyrocketing ECB Balance Sheet

2012-01-13T17:11:00.001-06:00

ECB Says Credit Crunch Averted; Yet ECB Overnight Deposits Again Hit Record High; Skyrocketing ECB Balance Sheet

Europe Update

2012-01-13T17:08:00.001-06:00

Europe Update

Financial Times: France and Austria face Downgrades, Greek Debt talks "collapse"

2012-01-13T17:07:00.001-06:00

Financial Times: France and Austria face Downgrades, Greek Debt talks "collapse"

U.S. wants to ‘close down the Central Bank of Iran’ over nuclear concerns

2012-01-13T17:02:00.001-06:00

U.S. wants to ‘close down the Central Bank of Iran’ over nuclear concerns

U.S. troops quietly surge into Middle East

2012-01-13T16:57:00.002-06:00

U.S. troops quietly surge into Middle East

Homeland Security watches Twitter, social media

2012-01-11T22:11:00.001-06:00

Homeland Security watches Twitter, social media

Panetta admits Iran not developing nukes

2012-01-10T18:19:00.000-06:00

Panetta admits Iran not developing nukes

New Hampshire Republican Debate: Ron Paul Spars With Newt Gingrich

2012-01-08T12:48:00.003-06:00

Paul absolutely destroys Gingrich. Watch the Video: here.

Background on Gingrich:

"Like most of his generation, Gingrich was moderately anti-Establishment (he tried pot, and participated in a campus protest at Tulane University) and chose not to go to Vietnam, opting for deferments available to him as a father and a student. But unlike most young men his age, Gingrich would be haunted by his decision."

Source: http://www.pbs.org/wgbh/pages/frontline/newt/boyernewt1.html

"[A]s a graduate student at Tulane University in 1968 became the Southern regional director for the brief and unsuccessful presidential campaign of the liberal Nelson Rockefeller—not the sort of item a Southern Republican in those days usually wanted on his resume, but a first step on the political ladder nonetheless."

Source: http://www.tnr.com/article/politics/84568/kilgore-gingrich-liberal-policies

What If "They" Are Lying to Us about Ron Paul?

2012-01-08T12:02:00.001-06:00

The Obama Administration Placed Severe Sanctions on Iran and Its Supporters

2012-01-08T11:37:00.017-06:00

On November 19, 2011, the Obama Administration placed severe sanctions on Iran and those who support Iran. Last night, I heard the non-Paul/Huntsman candidates stating the Obama Administration was not doing anything to stop Iran from producing a nuclear weapon. Those statements by these candidates are totally false.

Below are the actions the U.S. (Obama Administration) is taking against Iran:

---------------------------------------------------------------------------------------------------

New Sanctions under Executive Order (E.O.) 13590:

On November 19, President Obama signed E.O. 13590, which significantly expands existing energy-related sanctions on Iran to authorize sanctions on persons that knowingly provide:

1. Goods, Services, Technology, or Support for the Development of Petroleum Resources:

The sale, lease, or provision of goods, services, technology, or support to Iran that could directly and significantly contribute to the enhancement of Iran’s ability to develop petroleum resources located in Iran could trigger sanctions if a single transaction has a fair market value of $1 million or more, or if a series of transactions from the same entity have a fair market value of $5 million or more in a 12-month period.

2. Goods, Services, Technology, or Support for the Maintenance or Expansion of the Petrochemical Sector:

The sale, lease, or provision of goods, services, technology, or support to Iran that could directly and significantly facilitate the maintenance or expansion of its domestic production of petrochemical products could trigger sanctions if a single transaction has a fair market value of $250,000 or more, or if a series of transactions from the same entity have a fair market value of $1 million or more in a 12-month period.

If a person is found to have provided a good, service, technology, or support described in E.O. 13590, the Secretary of State, in consultation with other agencies, has the authority to impose sanctions, including prohibitions on: foreign exchange transactions; banking transactions; property transactions in the United States; U.S. Export-Import Bank financing; U.S. export licenses; imports into the United States; loans of more than $10 million from U.S. financial institutions; U.S. government procurement contracts; and, for financial institutions, designation as a primary dealer or repository of U.S. government funds.

Source: http://www.treasury.gov/press-center/press-releases/Pages/tg1367.aspx
---------------------------------------------------------------------------------------------------

These sanctions provoke war. All Iran can export is petroleum, and the U.S. will now slap sanctions upon anyone who deals in petroleum trade with Iran. Why does Iran sabre rattle? Why does Iran threaten to shut down the Straits of Hormuz? Those threats are directly linked to the sanctions the Obama Administration placed on Iran and its business partners. Doesn't China get much of its oil from Iran?

With the exception of out-right war, I do not know how you can get more aggressive with a country then what the Obama Administration has done to Iran. Please reread Geithner's speech in regards to Iranian sanctions:

Remarks by Treasury Secretary Tim Geithner on Targeting Iran’s Nuclear and Missile Programs

Below are some highlights from Geithner's speech:

"Iran has been subjected to new and damaging levels of financial and commercial isolation.

First, we have dramatically reduced Iran’s access to the international financial system. Iranian banks are losing the ability to do business around the world, which in turn has reduced the ability of the Iranian government to finance activities opposed by the international community.

Second, Iran’s national shipping line – which has transported material in support of Iran’s missile program – is now shut off from many of the world’s major ports and routinely finds its ships seized or turned away.

And third, Iran’s primary source of revenue – its oil sector – is in decline, because it cannot attract the foreign investment that it desperately needs to maintain production.

Together, the intensification of sanctions by this Administration, alongside our partners around the world, has inflicted substantial damage to the Iranian economy.

For the first time, we are identifying the entire Iranian banking sector – including the Central Bank of Iran – as a threat to governments or financial institutions that do business with Iranian banks.

If you are a financial institution and you engage in any transaction involving Iran’s Central Bank or any other Iranian bank operating inside or outside Iran, you are at risk of supporting Iran’s illicit activities: its pursuit of nuclear weapons, its support for terrorism, and its efforts to deceive responsible financial institutions and evade sanctions.

Financial institutions around the world should think hard about the risks of doing business with Iran."

-Tim Geithner, U.S. Treasury Secretary

Iowa Vote Count Typo; Santorum May Have Won

2012-01-06T06:20:00.001-06:00

Letter to the Editor Regarding Central Bank Liquidity Swaps

2012-01-05T22:02:00.000-06:00

Letter to the Editor Regarding Central Bank Liquidity Swaps

Training exercise startles locals

2012-01-05T17:28:00.000-06:00

Training exercise startles locals

Secretary Geithner to Travel to China and Japan Next Week

2012-01-04T16:18:00.001-06:00

Secretary Geithner to Travel to China and Japan Next Week

FOMC Minutes: Agreement to provide "projections of appropriate monetary policy" in January

2012-01-03T18:21:00.000-06:00

FOMC Minutes: Agreement to provide "projections of appropriate monetary policy" in January

Deflation: Making Sure "It" Doesn't Happen Here

2012-01-01T19:47:00.011-06:00

With the New Year, it is time to revisit Bernanke's infamous speech. In 2002, this speech outlined much of the extraordinary actions the Federal Reserve chose to conduct during the past 4 years. During his 2002 speech, he hints at further actions not experienced yet.

Deflation: Making Sure "It" Doesn't Happen Here

"Deflation is defined as a general decline in prices, with emphasis on the word 'general.' " - Ben Bernanke

I do not agree with Bernanke's definition. Deflation is money destruction. General price declines are only a symptom of money destruction.

In our debt-backed money system, money creation (inflation) occurs with the expansion of debt, and money destruction (deflation) occurs with the contraction of debt. The definition of our money system is: for every dollar in existence there is an equal dollar of debt to back it. Therefore, destroying all debt destroys all dollars.

Obama Signs Defense Bill Despite 'Serious Reservations'

2012-01-01T14:57:00.002-06:00

The opening line of the article:

"Indefinite military detention of Americans became the law of the land Saturday, as President Barack Obama signed a defense bill that codified that authority."

Obama Signs Defense Bill Despite 'Serious Reservations'

Fed Secretly Bailing Out Europe . . . and Japan!

2011-12-29T17:11:00.004-06:00

Central Bank Liquidity Swaps continue to grow. The latest Federal Reserve Balance Sheet reveals almost $85 billion in Central Bank Liquidity Swaps to the ECB and about $15 billion to the Bank of Japan. Source: http://www.newyorkfed.org/markets/fxswap/fxswap.cfm

Even with close to $100 billion worth of Central Bank Liquidity Swaps Outstanding, the Federal Reserve is still no where close to its Central Bank Liquidity Swap peaks during the Fall of 2008. Refer to the chart below:

(Click on the Image to Enlarge)

Source: http://www.federalreserve.gov/datadownload/Choose.aspx?rel=H41

Suspension of Economic Crisis Watch Until after the New Year

2011-12-18T16:42:00.002-06:00

I will be suspending this website until after the New Year. May everyone have a blessed Christmas and New Year.

Sincerely, Jon Marek

Central Bank Liquidity Swaps Jump

2011-12-15T21:56:00.004-06:00

This week central bank liquidity swaps increased almost 24 times the previous week's amount. $50.7 billion in swaps were purchased by the European Central Bank at 0.59% interest for 84 days.

The purpose of central bank liquidity swaps:

"These swap facilities respond to the re-emergence of strains in short term funding markets in Europe. They are designed to improve liquidity conditions in global money markets and to minimize the risk that strains abroad could spread to U.S. markets, by providing foreign central banks with the capacity to deliver U.S. dollar funding to institutions in their jurisdictions. "

Source: http://www.newyorkfed.org/markets/fxswap/fxswap.cfm

Americans face Guantánamo detention after Obama climbdown

2011-12-15T07:15:00.001-06:00

Americans face Guantánamo detention after Obama climbdown

US troops surround Syria on the eve of invasion?

2011-12-14T21:15:00.001-06:00

US troops surround Syria on the eve of invasion?

On National Defense Authorization Act, Obama pulls veto threat

2011-12-14T18:03:00.001-06:00

On National Defense Authorization Act, Obama pulls veto threat

Ben Bernanke: Fed Doesn't Have 'Authority' To Bail Out Europe

2011-12-14T17:57:00.001-06:00

Ben Bernanke: Fed Doesn't Have 'Authority' To Bail Out Europe

China set to tax US-made car imports

2011-12-14T17:51:00.000-06:00

China set to tax US-made car imports

MF Global Employee Indicated Corzine Knew Loans Were Made From Customer Accounts

2011-12-14T07:41:00.002-06:00

December 13, 2011 In Iowa, Paul closes to within one point of front-runner Gingrich -

2011-12-13T17:53:00.000-06:00

In Iowa, Paul closes to within one point of front-runner Gingrich

December 13, 2011 Federal Reserve issues FOMC statement

2011-12-13T17:48:00.001-06:00

No changes.

December 13, 2011 Federal Reserve issues FOMC statement

Latvia's Biggest Bank Fights Off Deposit Run

2011-12-12T07:41:00.001-06:00

Latvia's Biggest Bank Fights Off Deposit Run

Exclusive: ECB limits bond buying, euro zone looks to banks

2011-12-11T16:17:00.001-06:00

Exclusive: ECB limits bond buying, euro zone looks to banks

Police employ Predator drone spy planes on home front

2011-12-11T15:49:00.001-06:00

The war materials are being waged at home.

Police employ Predator drone spy planes on home front

Ann Barnhardt: The Entire Futures/Options Market Has Been Destroyed by the MF Global Collapse

2011-12-11T12:00:00.001-06:00

Powerful interview!

Ann Barnhardt: The Entire Futures/Options Market Has Been Destroyed by the MF Global Collapse

Ron Paul wins Oklahoma Straw Poll in a LANDSLIDE

2011-12-10T22:32:00.001-06:00

Ron Paul wins Oklahoma Straw Poll in a LANDSLIDE

Oath Keepers Alert: Federal Agents Demand Customer Lists From Mormon Food Storage Facility

2011-12-10T22:31:00.001-06:00

Oath Keepers Alert: Federal Agents Demand Customer Lists From Mormon Food Storage Facility

European Banks: We’re Out of Collateral

2011-12-10T22:29:00.000-06:00

European Banks: We’re Out of Collateral

'I'm sorry... but I've got no idea where your money's gone': Jon Corzine apologises to MF Global clients with $1.2bn still missing

2011-12-10T22:16:00.007-06:00

If this country still follows the rule of law, then this man should be in jail!

'I'm sorry... but I've got no idea where your money's gone': Jon Corzine apologises to MF Global clients with $1.2bn still missing

I watched most of the questioning by Congress, and I was not impressed with the questions. One Congressman should have really gone after the throat of Jon Corzine, but none did. Instead they asked him, "due to your vast experience how can we prevent this from happening again?" More of the same, the Congress is still bought and paid for by the same criminals. This country must awake, or we are falling into a dictatorship controlled by the established elite.

Finland, Netherlands, Ireland Threaten to Torpedo Merkozy Plan; Finnish Parliament Rules Proposed Treaty changes "Unconstitutional"

2011-12-08T21:37:00.000-06:00

Finland, Netherlands, Ireland Threaten to Torpedo Merkozy Plan; Finnish Parliament Rules Proposed Treaty changes "Unconstitutional"

Separating Fact From Fiction on the Fed's Loans; How Much Was it? Bloomberg Stands By Its Reporting

2011-12-08T18:27:00.001-06:00

Separating Fact From Fiction on the Fed's Loans; How Much Was it? Bloomberg Stands By Its Reporting

Iran airs footage of downed US drone

2011-12-08T17:52:00.001-06:00

Iran airs footage of downed US drone

Mystery company buying up U.S. gun manufacturers

2011-12-08T07:21:00.000-06:00

Mystery company buying up U.S. gun manufacturers

Rupert Murdoch Lobbies Congress To Restrict Internet

2011-12-08T06:59:00.001-06:00

Foreign Fox News owner going at it.

Rupert Murdoch Lobbies Congress To Restrict Internet

Occupy Comics: Alan Moore And David Lloyd Of 'V For Vendetta' Are Onboard

2011-12-08T06:52:00.001-06:00

Occupy Comics: Alan Moore And David Lloyd Of 'V For Vendetta' Are Onboard

Demand for Dollars from Fed's Discount Window Swells in Europe by 12,735% After Fed Cut Rates on Dollar Swap Lines

2011-12-07T22:20:00.000-06:00

Demand for Dollars from Fed's Discount Window Swells in Europe by 12,735% After Fed Cut Rates on Dollar Swap Lines

EU Downgrade? S&P Places European Union On Negative Watch

2011-12-07T22:09:00.001-06:00

EU Downgrade? S&P Places European Union On Negative Watch

Fed Chairman responds to "inaccurate" Bloomberg article

2011-12-07T00:00:00.000-06:00

Fed Chairman responds to "inaccurate" Bloomberg article

Anxious Greeks Emptying Their Bank Accounts

2011-12-06T16:33:00.001-06:00

Anxious Greeks Emptying Their Bank Accounts

Elderly complain about pants search at airport

2011-12-06T07:35:00.000-06:00

Elderly complain about pants search at airport

Police in City see occupiers as 'terror' risk

2011-12-05T16:44:00.001-06:00

Police in City see occupiers as 'terror' risk

S&P Puts 15 EU Nations on Negative Credit Watch

2011-12-05T16:29:00.001-06:00

S&P Puts 15 EU Nations on Negative Credit Watch

Fed may give loans to IMF to help euro zone: paper

2011-12-05T16:26:00.001-06:00

Fed may give loans to IMF to help euro zone: paper

Ron Paul Slams Trump, Joins Huntsman In Sitting Out 'Circus-Like' Debate

2011-12-04T12:39:00.000-06:00

Ron Paul Slams Trump, Joins Huntsman In Sitting Out 'Circus-Like' Debate

U.S. Postal Service Faces Bankruptcy, Plans Cuts To Slow Delivery Of First Class Mail

2011-12-04T12:36:00.001-06:00

U.S. Postal Service Faces Bankruptcy, Plans Cuts To Slow Delivery Of First Class Mail

Iowa Poll: Gingrich leads GOP pack, then Paul, Romney

2011-12-04T12:32:00.001-06:00

Iowa Poll: Gingrich leads GOP pack, then Paul, Romney

Iran threatens retaliation after drone shot down

2011-12-04T12:29:00.000-06:00

Iran threatens retaliation after drone shot down

85-year-old says she was strip searched at JFK, TSA said it wasn't conducted

2011-12-04T12:19:00.000-06:00

85-year-old says she was strip searched at JFK, TSA said it wasn't conducted

85-year-old woman may sue TSA after being strip searched at JFK Airport Read

2011-12-03T16:35:00.003-06:00

This story will break your heart and enrage you. The U.S. is not a Constitutional Republic.

85-year-old woman may sue TSA after being strip searched at JFK Airport

Bob McTeer - The Fed’s Recent Action on Swaps

2011-12-03T09:38:00.002-06:00

Plain English explanation of the liquidity swaps.

The Fed’s Recent Action on Swaps

Corzine Subpoenaed to Appear Before House Panel

2011-12-03T09:24:00.001-06:00

Corzine Subpoenaed to Appear Before House Panel

Fed’s Fisher Says U.S. Risks ‘Social Unrest’ Amid Rising Federal Deficits

2011-12-03T09:19:00.001-06:00

Fed’s Fisher Says U.S. Risks ‘Social Unrest’ Amid Rising Federal Deficits

Hank Paulson’s inside jobs

2011-12-02T15:34:00.000-06:00

Hank Paulson’s inside jobs

Senate Kills Effort To Ban Indefinite Military Detentions Of U.S. Citizens

2011-12-01T22:30:00.001-06:00

Senate Kills Effort To Ban Indefinite Military Detentions Of U.S. Citizens

James Rickards on the IMF becoming a Central Bank and the Fed becoming a Hedge Fund

2011-12-01T19:39:00.002-06:00

YELLOW ALERT Further Analysis of Yesterday's Federal Reserve Announcement

2011-12-01T18:05:00.009-06:00

Yesterday's Federal Reserve announcement revealed several changes to the policy of conducting central bank liquidity swaps:

1) Lowered the cost of dollar liquidity swaps by .5%
2) Extended the liquidity swap transactions until February 1, 2013
3) Continues 3 month tenders
4) Temporary bilateral liquidity swap arrangements.

Source: http://www.federalreserve.gov/newsevents/press/monetary/20111130a.htm

In my opinion, item 4 (temporary bilateral liquidity swap arrangements)had the strongest change to Federal Reserve policy. The Federal Reserve stated: "as a contingency measure, the Federal Open Market Committee has agreed to establish similar temporary swap arrangements with these five central banks [Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank] to provide liquidity in any of their currencies if necessary."

My understanding of this statement is foreign central banks can swap their currencies to the U.S. Before this announcement, only the U.S. dollar could be swapped. Now, foreign central banks can swap their currency to the Federal Reserve. This action effectively gives these 6 central banks the ability to manipulate American, British, Canadian, Japanese, Swiss, and Euro Nation currencies as one global nation. Did this announcement effectively create a currency that encompasses the nations of these 6 central banks?

Treasury Sanctions High-Ranking Syrians, Identifies Government-Controlled Businesses

2011-12-01T17:51:00.000-06:00

Treasury Sanctions High-Ranking Syrians, Identifies Government-Controlled Businesses

New York Fed releases expanded reverse repo counterparties list

2011-12-01T17:49:00.000-06:00

New York Fed releases expanded reverse repo counterparties list

Beware A Discount Rate Cut

2011-12-01T16:56:00.001-06:00

Beware A Discount Rate Cut

China to Protect Iran Even if Result Starts World War III; What's the Best Way to Deal with Iran?

2011-12-01T16:54:00.002-06:00

China to Protect Iran Even if Result Starts World War III; What's the Best Way to Deal with Iran?

EU Bank Writedowns to Exclude Pre-2013 Debt; French Bond Yields Drop Most on Record; Italian Bond Yields Drop Below 7%

2011-12-01T16:52:00.001-06:00

EU Bank Writedowns to Exclude Pre-2013 Debt; French Bond Yields Drop Most on Record; Italian Bond Yields Drop Below 7%

Massachusetts AG Lawsuit: Five Major U.S. Banks Accused Of Deceptive Foreclosure Practices

2011-12-01T14:07:00.000-06:00

About time!

Massachusetts AG Lawsuit: Five Major U.S. Banks Accused Of Deceptive Foreclosure Practices

Obama lawyers: Citizens targeted if at war with US

2011-12-01T14:01:00.001-06:00

Obama lawyers: Citizens targeted if at war with US

RED ALERT Federal Reserve Stealth QE RED ALERT

2011-11-30T20:11:00.014-06:00

The NY Federal Reserve did something I've never seen it do before . . . the Trading Desk at the Federal Reserve Bank of New York (“the Desk”) did not carry out FOMC policy. The FOMC's policy of QE nuetral was ignored today.

In order to sanitize the Treasury purchases (QE) over the past several days, the Federal Reserve was suppose to sell (Reverse QE) its Treasury securities today. The Federal Reserve should have sold (Reverse QE) $8 to $8.75 billion in Treasury securities during today's trading session.

In regards to today's scheduled sale (Reverse QE) of Treasury securities, the Federal Reserve stated why it did not carry out FOMC policy with this statement: "Due to systems difficulties, this operation has been cancelled and will be rescheduled to a later date. The rescheduled operation will be announced with the December schedule of operations at 2:00 PM this afternoon" (refer to the image below for detail).

(Click on the Image to Enlarge)

Source: http://www.newyorkfed.org/markets/pomo/display/index.cfm

What made the market jump the highest level in one day since March 2009? Most say it is due to the announcement by the Federal Reserve of its coordinated central bank action. In my opinion, this jump in the market was induced and maintained by the unannounced withdrawal of selling Treasuries back into the market (Reverse QE).

The Federal Reserve wants the world to believe the market jumped on its "coordinated" effort with central banks. The Federal Reserve wants the world to believe it was highly effective with its brilliant "coordination." Now, we know they manipulated the market by not withdrawing the scheduled amount of money out of the system (the market was anticipating an $8 billion withdrawal of money out of the system). This non-action effectively created QE.

I'm not saying this action was the only reason the market jumped, but I am saying it helped maintain or exaggerate the market move. This action was pure manipulation. What a coincidence for the Federal Reserve to have its first ever failure to carry out policy on the very day it "coordinates" policy with other foreign central banks while the Euro Banks teeter on collapse.

If we can still trust the Federal Reserve policy, then expect them to return to QE neutral in December. Here is a link to December's schedule. They are going to make up for the $8 billion it did not sell today. The Federal Reserve's statement on December's schedule is: "Across all operations in the schedule listed below, the Desk plans to purchase approximately $45 billion and sell approximately $52 billion in Treasury securities over the month of December. The sale amount of $52 billion includes approximately $8 billion from a rescheduled sale operation in November. " That $8 billion was today's failure to sell by the Federal Reserve.

I'm curious what policymakers loaded up on stocks yesterday.

Medal of Honor recipient sues defense firm, alleges retaliation

2011-11-30T18:27:00.001-06:00

Medal of Honor recipient sues defense firm, alleges retaliation

Coordinated central bank action to address pressures in global money markets

2011-11-30T08:38:00.003-06:00

Not QE. A form of credit.

Coordinated central bank action to address pressures in global money markets

Below is the Fed's definition of a Dollar Swap or Central Bank Liquidity Swap:

"Central bank liquidity swaps: The FOMC has authorized temporary reciprocal currency arrangements (central bank liquidity swaps) with certain foreign central banks to help provide liquidity in U.S. dollars to overseas markets. These swaps involve two transactions. First, when the foreign central bank draws on the swap line, it sells a specified amount of its currency to the Federal Reserve in exchange for dollars at the prevailing market exchange rate. The foreign currency that the Federal Reserve acquires is placed in an account for the Federal Reserve at the foreign central bank. This line in the statistical release reports the dollar value of the foreign currency held under these swaps. Second, the dollars that the Federal Reserve provides are deposited in an account for the foreign central bank at the Federal Reserve Bank of New York. At the same time as the draw on the swap line, the Federal Reserve and the foreign central bank enter into a binding agreement for a second transaction in which the foreign central bank is obligated to repurchase the foreign currency at a specified future date at the same exchange rate. At the conclusion of the second transaction, the foreign central bank pays a market-based rate of interest to the Federal Reserve. Central bank liquidity swaps are of various maturities, ranging from overnight to three months."

Source: http://www.federalreserve.gov/monetarypolicy/bst_table10popup.htm

Here is the history:

Report: Mysterious blast in Iran's Isfahan damaged key nuclear site

2011-11-30T07:31:00.001-06:00

Report: Mysterious blast in Iran's Isfahan damaged key nuclear site