- The treasuries end game has started. The casualty will be the USD. China has begun selling treasuries and announcing it publicly. The FedRes will have no choice but to increase its treasury purchase by 10 fold. Uncle Sam need US$2-3T for the next 12 months. On top of this amount, the FedRes will have to absorb treasuries that existing holders sell. So, the earlier announced US$300B of QE is insufficient. US$3T of debt monetization is the more realistic figure. This will spark massive inflation. AFP reports :
A decision by China to reduce its US Treasury holdings suggests concern about the US attitude towards its economic woes, Chinese economists were quoted as saying in state media Wednesday.
The remarks, coming after US data showed a modest decline in Chinese investments in US government bonds, were in contrast to an earlier statement in Beijing which had said the recent sell-off was a routine transaction.
“China is implying to the US, more or less, that it should adopt a more pragmatic and responsible attitude to maintain the stability of the dollar,” He Maochun, a political scientist at Tsinghua University, told the Global Times.
According to US Treasury data issued Monday, Beijing owned 763.5 billion dollars in US securities in April, down from 767.9 billion dollars in March. It was the first month since June 2008 that Beijing failed to purchase more US T-bills.
Zhang Bin, a researcher at the Chinese Academy of Social Sciences, said China’s move showed a more cautious attitude. “It is unclear whether the reduction will continue because the amount is so small. But the cut signals caution of governments or institutions toward US Treasury bonds,” Zhang told Xinhua news agency.
China’s foreign ministry said Tuesday that its purchases of US Treasuries remained based on “security, liquidity and value preservation”.
For Zhao Xijun, deputy director of the Finance and Securities Research Institute of People’s University, China may have reduced its holding of US Treasuries simply because it needed the money.
Zhao said the sell-off could have been in order to pay for its own economic stimulus package.
- Reuters reports :
The Federal Reserve is buying Treasuries maturing May 2016 through May 2019 on Wednesday, the New York Federal Reserve said on its Website.
The purchase, which started at 10.16 a.m. (1416 GMT) and ends at 11 a.m. (1500 GMT), is part of the U.S. central bank’s emergency effort to keep long-term interest rates low. The Fed said in March it would buy up to $300 billion in U.S. government bonds over six months.
- The attacks on the American USD financial hegemony are getting louder. BRIC and SCO countries are smelling blood. I suspect they have resigned themselves to some significant losses to their USD denominated holdings. Bloomberg reports :
The leaders of Russia and China agreed to expand use of the ruble and yuan in bilateral trade to lessen dependence on the U.S. dollar a day after they took part in the first summit of the so-called BRIC countries.
“We agreed to take further steps in this direction, including, perhaps, by adjusting contracts and laws that already exist,” Russian President Dmitry Medvedev told reporters in the Kremlin today after talks with his Chinese counterpart Hu Jintao.
Russia, the world’s biggest energy supplier, wants to start selling oil to China in rubles, said Deputy Prime Minister Igor Sechin, who is also chairman of OAO Rosneft, Russia’s biggest oil company. Energy sales in rubles are a “strategic” issue for Russia, he said, adding that oil exports to China over the next 20 years will surpass $100 billion.
Brazil, Russia, India and China agreed yesterday to push for more clout in global financial institutions during what Medvedev called BRIC’s “historic” first summit in the Ural Mountains city of Yekaterinburg. China and Russia have called for a more diversified financial system to give emerging economies a bigger say in economic affairs, including the creation of alternatives to the U.S. dollar as a reserve currency.
“Expanding the use of national currencies in mutual settlements is a separate, important task,” Medvedev said. China has the world’s biggest foreign-currency reserves, almost $2 trillion, while Russia is third with more than $400 billion.
The dollar’s status has come into question as leaders of the BRIC nations consider substituting other assets for their dollar holdings amid a ballooning budget deficit that keeps the U.S. dependent on foreign financing. China alone owns about $744 billion of U.S. Treasury bonds among its $2 trillion of foreign- exchange reserves.
Russian central bank First Deputy Chairman Alexei Ulyukayev’s comment on June 10 that Russia may sell some of its U.S. bonds to buy International Monetary Fund notes helped push 10-year yields on Treasuries to the highest level since October.
- Obama is just a mouth piece for his corporate sponsors: Wall Street Banksters. See: Wall Street is investing heavily in Barack Obama. Jonathan Weil comments, Obama Stakes His Fortunes on Failed Banksters :
The Obama administration’s “strategy,” for lack of a better word, is to keep plying broken financial institutions with as much taxpayer money as the government can print. And so the government will keep subsidizing failed mega-banks indefinitely, rather than placing any into receivership or liquidating them.
Taxpayers at Risk
The latest iteration of this policy is the Treasury Department’s Public-Private Investment Program. In short, struggling financial institutions will be encouraged to swap their most toxic mortgage-related assets with one another at inflated prices. The purchases will be financed by big government loans, so that taxpayers are at risk for the bulk of any losses.
If the government wanted transparency, it would force financial institutions to write down their bad assets now, and figure out afterward which companies deserve taxpayer support. Instead, the Treasury plans to recapitalize them first, keep their current financial condition hidden, and let their failed managers stay in their jobs.
- So what about Obama’s new financial reforms? Kurt Nimmo opines:
Obama’s misnamed “Financial Regulatory Reform Plan” is a brazen attempt by the bankers to consolidate their power. Obama — or rather, the bankers who own Obama — has devised something called a “Financial Services Oversight Council” to be chaired by the bankster dominated Treasury Department. This uber-council would call the shots for every financial firm in the country and supposedly refer “emerging risks to the attention of regulators with the authority to respond,” even as Obama plans to call for the U.S. Office of Thrift Supervision to close under the direction of the Federal Reserve.
Instead of independent bank regulators, Obama proposes a “National Bank Supervisor” who would have “separate status within Treasury and be led by a single executive,” according to Clusterstock. The NBS czar would occupy a centralized post in enemy territory and “take over the prudential responsibilities of the Office of the Comptroller of the Currency, which currently charters and supervises nationally chartered banks and federal branches and agencies of foreign banks.”
Wall Street and its international offshore banker overlords are addicted to derivatives. “These derivatives now amount to a total worldwide notional value that can be estimated between 1 quadrillion and two quadrillion US dollars. This sum is so large that it dwarfs the total value of the entire planet earth and all those who live here,” notes Webster G. Tarpley.
If you think Obama and crew plan to do something about this massive black hole, I have a bridge to sell you on Krypton.
Obama’s “Financial Regulatory Reform Plan” is but another bankster scam. It is an obvious plan to grab up more industries and goodies under the guise of “regulation” and (ack) “consumer protection.” So contemptuous of you and your family are the bankers they don’t even attempt to make this threadbare nonsense plausible. It is thievery right out in the open.
Our only hope at this point is the Federal Reserve Transparency Act, HR 1207, now up to 232 co-sponsors. It needs a two-thirds vote with 290 members on board so the bankster tool Obama will not veto it.
On that day of its passage there will be a short cry of hosanna — and then we will open the Fed’s books and begin the process of delivering the criminals to justice and closing down the Federal Reserve Crime Syndicate once and for all.
- America is bankrupt ! The country cannot afford a lot of things. Federal and state governments are cutting back on many services. But guess what? The country still can afford wars! The corporatist fascist government have to spend money to help oil companies maintain their oil fields. They need to spend more money to conquer more oil territories, to lay oil pipelines… for the sake of their sponsors: oil corporations. War is a racket ! Raw Story reports :
One week after declaring that the United States “cannot afford” the wars in Afghanistan and Iraq “financially or spiritually,” Ohio’s Democratic Rep. Dennis Kucinich, a staunch anti-war crusader, took aim at Congress for not taking a more active role in any of the war on terror fronts.
“We are destroying our nation’s moral and fiscal integrity with this war supplemental,” Kucinich argued on the House floor Tuesday. “Instead of ending wars in Iraq, Afghanistan, and Pakistan now by appropriating only enough money to bring our troops home, Congress abdicates its constitutional authority, defers to the president, and asks for a report. That’s right, all we are asking for is a report on when the president will end the war.”
Kucinich continued, “There is also money for the IMF, presumably to bail out private European banks. Billions for the IMF so they can force low and middle income nations to cut jobs, wages, health care and retirement security, just like corporate America does to our constituents. And there’s money to incentivize the purchase of more cars, not necessarily from U.S. manufacturers because a ‘Buy America’ mandate was not allowed.”
“Another $106 billion dollars and all we get is a lousy war,” Kucinich said. “Pretty soon that is going to be about the only thing made in America – war.”
- See also :
Major General Smedley Butler – War is a Racket !
America: From Freedom to Fascism
America – Why do We Fight ?
The Plot to Overthrow Franklin D. Roosevelt
Do Banksters and the Military Industrial Complex Rule the World ?
What is the Unites States preparing in Pakistan?
Exposing the Truth on NATO-US Agression against Yugoslavia
Washington Plans Global NATO To Replace UN
Confessions of an Economic Hit Man – John Perkins
History of The New American Century
- Should you take the vaccine for A/H1N1? I don’t think so. What are the consequences? At worse you catch a 3-4 day flu. So what? Big Pharma is corrupt. I don’t trust them. I still believe this swine flu is bio-engineered. Remember :
Live Avian Flu Virus Placed in Baxter Vaccine Materials Sent to 18 Countries
Flashback: Homeless People Die After Bird Flu Vaccine Trial in Poland
Do Not Take A Swine Flu Vaccine!
Bayer Exposed (HIV Contaminated Vaccine)!
Plans for Mass Graves Confirmed: Government Surveying Cemetery Readiness for Flu Outbreak
Avian Flu, Population Control, H5N1, Biological Warfare
The Pentagon’s Alarming Project: Avian Flu Biowar Vaccine!
- Pharmabiz.com reports :
Baxter International Inc. has completed testing and evaluation of the A/H1N1 influenza virus and is now in full-scale production of a commercial A/H1N1 vaccine using its Vero cell culture technology. Baxter received an A/H1N1 strain from the US Centers for Disease Control and Prevention [a World Health Organization (WHO) Collaborating Center] in early May and is diligently working to deliver a pandemic vaccine for use as early as July.
Baxter is in contact with WHO and other global public health authorities regarding the pandemic. A number of national public health authorities have existing pandemic agreements with Baxter that allow them to place orders for a vaccine now that a pandemic has been declared by WHO. These public health authorities will be evaluating their needs to determine their orders for vaccine supply. Despite the company’s existing obligations to supply vaccine under a pandemic phase-6 alert, Baxter is also committed to working with WHO to allocate a portion of the company’s commercial production to address global public health issues deemed most urgent.Using its Vero cell technology, Baxter has received European Medicines Agency (EMEA) approval for a mock-up pandemic vaccine called Celvapan, the brand name for the company’s pandemic vaccine. The qualification, development and manufacturing processes used in gaining mock-up licensure for Celvapan apply as the company uses this new influenza A/H1N1 virus strain to produce a pandemic vaccine. The Celvapan EMEA licensure supports fast track approval of a pandemic vaccine containing the A/H1N1 virus strain. Baxter will submit the A/H1N1 vaccine for approval upon completion of initial manufacturing runs.
- See also :
New Flu Strain ‘has mutated, become more infectious’
Swine Flu Cultured in Lab? WHO Probes Claim
Is Swine Flu A Biological Weapon?
Swine Flu Epidemic & Avianized Flu Pandemic
Pandemic Flu: Something Wicked This Way Comes!
Previous Swine Flu Outbreak Originated At Fort Dix!
Mexican Swine Flu – An Advanced Biowar Event ?
Alex Jones: Swine Flu Pandemic
Swine Flu Was “Cultured In A Laboratory” !
Alex Jones – Weaponized Avian Flu ?
US Air Force Study Suggests 2009 Influenza Pandemic in 1996
Is the World Heading Towards Pandemic Avian Flu ?