Ok the corparte wellfare bill gets shutdown, yet fed injects 630 billion

[stang56k]

http://www.bloomberg.com/apps/news?pid=20601087&sid=ahwz_k5JvuB8&refer=worldwide

Can we not get some over sight on this corporation the Federal Reserve please? Their free ride corporate welfare bail out got shut down, so they inject 630 billion dollars into the system. We seriously need some checks and balances on this instituion. Is the death and batter of the dollar really worth helping bad investments?

[diuretic]

I heard it was about keeping liquidity. I think that means money supply so that the system can operate and some form of credit can be extended.

And I think...oh bugger it I just hit the level of my economic knowledge. That didn't take long did it? :laugh2:

I'm benched now.

[stang56k]

I heard it was about keeping liquidity. I think that means money supply so that the system can operate and some form of credit can be extended.

And I think...oh bugger it I just hit the level of my economic knowledge. That didn't take long did it? :laugh2:

I'm benched now.

Your right, But where the problem lies is the fed has stopped producing the
M3 report which gave congress an insight of what is going on in the Fed. Without this report no one except the people that run this bank has any idea how much money is flowing into the system and alot of other things for that matter. Basicly here is no oversight at all.

The world runs on the dollar through petro-dollars, which is the most important thing proping our economy up by keeping the confidence in the dollar. Everytime they inject the money supply and lower intrest rates the confidence of the dollar goes down around the world. When this happens coutries that sale oil get more and more eager to use a different currency to use for oil trade.

So to sum it all up. If tommarrow OPEC annouced that it is switching to the Euro for all oil trades and dumping the dollar. Say bye bye to dollar, it is going to be worth Pesos.

[Psychoblues]

Sounds like you're catching on, stang. And if the world market no longer uses dollars for oil trade what do you suppose will happen to the price of eggs in China?

That may sound like I am kidding you, but I am not. It is a serious question!!!!!!!

:salute::cheers2::clap::laugh2::cheers2::salute:

[stang56k]

Sounds like you're catching on, stang. And if the world market no longer uses dollars for oil trade what do you suppose will happen to the price of eggs in China?

That may sound like I am kidding you, but I am not. It is a serious question!!!!!!!

:salute::cheers2::clap::laugh2::cheers2::salute:

Well considering China has alot of money tied up in our T-bonds I would say they would be hurting just as bad. But thats why they are slowly liqudating their assets here in the US , Which is not a good thing ether :wink2: .

[Psychoblues]

China has a lot tied up in American commercial paper as well, stang, but what if, hypothetical I know, the world market decided to accept only waun (Chinese currency) in oil compensation?



Well considering China has alot of money tied up in our T-bonds I would say they would be hurting just as bad. But thats why they are slowly liqudating their assets here in the US , Which is not a good thing ether :wink2: .

Everybody talks about the euro which in my opinion would not altogether be a bad thing but if we start trading waun for oil it gets real hairy real quick, if you know what I mean!!!!!!!!!!!

:salute::cheers2::clap::laugh2::cheers2::salute:

[stang56k]

China has a lot tied up in American commercial paper as well, stang, but what if, hypothetical I know, the world market decided to accept only waun (Chinese currency) in oil compensation?




Everybody talks about the euro which in my opinion would not altogether be a bad thing but if we start trading waun for oil it gets real hairy real quick, if you know what I mean!!!!!!!!!!!

:salute::cheers2::clap::laugh2::cheers2::salute:

Ether way its bad for us lol. I think people like the euro because it has gold backing. But, if the market was to switch the the waun we will see a new world super power that would scare the shit out of everyone lol. Absolute power corrupts absolutly will have a new meaning with the Chinese regime. Espeically with Russia and its petro based economy being friends with China. Scary thought I must say with the currect Us and Russian relations at the moment.

[Psychoblues]

International politics and monetary policy is always strange, convoluted, difficult to deal with and downright unforgiving. Anyone that has a poor understanding of international politics or an attitude of who cares about them proves out as the enemy of us all and that means us and them.



Ether way its bad for us lol. I think people like the euro because it has gold backing. But, if the market was to switch the the waun we will see a new world super power that would scare the shit out of everyone lol. Absolute power corrupts absolutly will have a new meaning with the Chinese regime. Espeically with Russia and its petro based economy being friends with China. Scary thought I must say with the currect Us and Russian relations at the moment.

We've certainly seen enough of that shit for the last few years, haven't we?

:salute::cheers2::clap::laugh2::cheers2::salute:

[stang56k]

International politics and monetary policy is always strange, convoluted, difficult to deal with and downright unforgiving. Anyone that has a poor understanding of international politics or an attitude of who cares about them proves out as the enemy of us all and that means us and them.




We've certainly seen enough of that shit for the last few years, haven't we?

:salute::cheers2::clap::laugh2::cheers2::salute:

Certainly, and provoking "the Bear" is no way to do it :wink2: . In Our forein policy, we have been using too many big sticks and lacking the speak softly. The best way to promote prosperity and friendships is to not be the bully imo. Not saying we should throw away the stick at all. Nothing would help out our economy more than having our reputation around the world be restored.

[Psychoblues]

Exactly, stang, exactly!!!!!!!!!!



Certainly, and provoking "the Bear" is no way to do it :wink2: . In Our forein policy, we have been using too many big sticks and lacking the speak softly. The best way to promote prosperity and friendships is to not be the bully imo. Not saying we should throw away the stick at all. Nothing would help out our economy more than having our reputation around the world be restored.

To hell with a stick, give me at least a 45 cal. sidearm. I can use it like it was a stick if I run out of bullets!!!!!!!!!!! Just kidding for real on that one, stang!!!!!!!!!!!!

BTW, I'm the resident bartender in the Lounge. Come on in and have a drink with me sometimes!!!!!!!!!!!!

:salute::cheers2::clap::laugh2::cheers2::salute:

[stang56k]

Exactly, stang, exactly!!!!!!!!!!




To hell with a stick, give me at least a 45 cal. sidearm. I can use it like it was a stick if I run out of bullets!!!!!!!!!!! Just kidding for real on that one, stang!!!!!!!!!!!!

BTW, I'm the resident bartender in the Lounge. Come on in and have a drink with me sometimes!!!!!!!!!!!!

:salute::cheers2::clap::laugh2::cheers2::salute:

:lol: .... Ill have a whiskey on the rocks :clap:

[Psychoblues]

Can I recommend a good Southern Bourbon?!?!?!?!??!??!



:lol: .... Ill have a whiskey on the rocks :clap:

12 year old Old Charter!!!!!!!!!!! Fantastic on the rocks, with Coca Cola, Sprite, H20, just a good solid all around mild bourbon!!!!!!!!!!!!!

Hell, I think I just talked myself into one!!!!!!!!!!!!!!

:salute::cheers2::clap::laugh2::cheers2::salute:

[stang56k]

Can I recommend a good Southern Bourbon?!?!?!?!??!??!




12 year old Old Charter!!!!!!!!!!! Fantastic on the rocks, with Coca Cola, Sprite, H20, just a good solid all around mild bourbon!!!!!!!!!!!!!

Hell, I think I just talked myself into one!!!!!!!!!!!!!!

:salute::cheers2::clap::laugh2::cheers2::salute:

:cheers2:

[stang56k]

Heres an example of what injecting money into a system does... Hyperinflation.


How Bad Is Inflation in Zimbabwe?

By MICHAEL WINES
Published: May 2, 2006

April 25 — How bad is inflation in Zimbabwe? Well, consider this: at a supermarket near the center of this tatterdemalion capital, toilet paper costs $417.

No, not per roll. Four hundred seventeen Zimbabwean dollars is the value of a single two-ply sheet. A roll costs $145,750 — in American currency, about 69 cents.

The price of toilet paper, like everything else here, soars almost daily, spawning jokes about an impending better use for Zimbabwe's $500 bill, now the smallest in circulation.

But what is happening is no laughing matter. For untold numbers of Zimbabweans, toilet paper — and bread, margarine, meat, even the once ubiquitous morning cup of tea — have become unimaginable luxuries. All are casualties of the hyperinflation that is roaring toward 1,000 percent a year, a rate usually seen only in war zones.

Zimbabwe has been tormented this entire decade by both deep recession and high inflation, but in recent months the economy seems to have abandoned whatever moorings it had left. The national budget for 2006 has already been largely spent. Government services have started to crumble.

The purity of Harare's drinking water, siphoned from a lake downstream of its sewer outfall, has been unreliable for months, and dysentery and cholera swept the city in December and January. The city suffers rolling electrical blackouts. Mounds of uncollected garbage pile up on the streets of the slums....


...At the same time, Mr. Mugabe's government has printed trillions of new Zimbabwean dollars to keep ministries functioning and to shield the salaries of key supporters — and potential enemies — against further erosion. Supplemental spending proposed early in April would increase the 2006 spending limits approved last November by fully 40 percent, and more such emergency spending measures are all but certain before the year ends.

On Friday, the government said it would triple the salaries of 190,000 soldiers and teachers. But even those government workers still badly trail inflation; the best of the raises, to as much as $33 million a month, already are slightly below the latest poverty line for the average family of five.

This will only worsen inflation, for printing too many worthless dollars is in part what got Zimbabwe into this mess to begin with. Zimbabwe fell into hyperinflation after the government began seizing commercial farms in about 2000. Foreign investors fled, manufacturing ground to a halt, goods and foreign currency needed to buy imports fell into short supply and prices shot up.

Inflation, about 400 percent per year last November, edged over 600 percent in January, but began to soar after the government revealed that it had paid the International Monetary Fund $221 million to cover an arrears that threatened Zimbabwe's membership in the organization.

In February, the government admitted that it had printed at least $21 trillion in currency — and probably much more, critics say — to buy the American dollars with which the debt was paid.

By March, inflation had touched 914 percent a year, at which rate prices would rise more than tenfold in 12 months. Experts agree that quadruple-digit inflation is now a certainty.

http://www.nytimes.com/2006/05/02/world/africa/02zimbabwe.html?_r=1&oref=slogin