Trump Now Owns the Fed

 

Donald Trump has the opportunity to appoint a higher percentage of the Board of Governors of the Federal Reserve system at one time than any president since Woodrow Wilson.

President Wilson signed the Federal Reserve Act during the creation of the Fed in 1913 when they had a vacant board. At that time, the law said the secretary of the Treasury and the comptroller of the currency were automatically on the Fed’s board of governors. But besides that, President Wilson selected all five of the other participating members.

Now Trump has the opportunity to fill more seats on the Fed’s Board of Governors than any president since then.

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US taper risks fresh crisis, says Deutsche Bank

Deutsche Bank says policymakers have become so used to “throwing liquidity” at structural problems that asset prices had become distorted and risked triggering a fresh crisis

Scaling back the Federal Reserve’s massive bond-buying programme risks throwing the global economy into disarray next year, Deutsche Bank has warned, with lenders unable to cope with higher borrowing costs, despite stronger economic growth. Continue reading

U.S. debt default? Asian policymakers ready $6 trillion forex safety net

As the U.S. struggles to avert a debt default, Asia’s policymakers have trillions of reasons to believe they may be shielded from the latest financial storm brewing across the Pacific.

From South Korea to Pakistan, Asia’s central banks are estimated to have amassed some $5.7 trillion in foreign exchange reserves excluding safe-haven Japan, much of it during the last five years of rapid money printing by the U.S. Federal Reserve.

Data this week showed those reserves continued to pile up, with countries having added an estimated $86.7 billion in the July-September quarter, according to data for 12 Asian countries whose reserves are tracked by Reuters. Continue reading

U.S. Treasury, Fed planning for possible default – source

U.S. Treasury and Federal Reserve officials worried about the growing possibility of a catastrophic default are crafting contingency plans to mitigate the economic fallout if Congress fails to extend America’s borrowing authority, a source familiar with the plans said.

With just eight days before the Treasury Department says the U.S. will hit its $16.7 trillion (10.46 trillion pounds) borrowing limit, lawmakers and the White House remain far from a deal to extend it. Officials are examining what options might be available to calm financial markets if a U.S. debt payment is missed.

The specifics of their planning remain unclear, but the source said an area of special focus is a key bank funding market known as the tri-party repurchase agreement, or repo, market, where banks often use Treasury bills, notes and bonds as collateral for short-term loans from other banks and big money market funds. Continue reading

Forget the Shutdown, Our Next Problem is the Dollar

The chatter against the dollar as global reserve currency has ramped up in recent days. The risks are huge and largely ignored. Even allies are questioning how long the dollar can sustain its status in light of our enormous debt and deficit. Now, with the government shutdown in place and a political battle over the debt ceiling, our enemies are looking at the possibility of an attack on our currency during the confusion.

Sadly, too many believe that our dollar will remain permanently strong. Of course, these are in many cases the same people who would argue that deficits don’t matter and that the Treasury could mint $1 trillion platinum coins, essentially making up money out of thin air, and no one would complain. They are living in a fantasy world, emboldened by doctored government statistics that attempt to show there is no inflation in the system. Continue reading

BIS: The most powerful bank in the world announces the crash

The following is an article published originally in German, translated in the best way Google can offer. Because this is fresh off the German press, don’t expect it to hit American news outlets until another week or so — and likely not on the major national outlets.

When the BIS speaks, markets listen. This is essentially a jaw dropper of an announcement. They realize that all the QE heroin injections are not working and that there is no way to financially turn the American economy around — it’s mathematically impossible. They also know that the US financial leadership knows. The day of reckoning is near and it’s not just the US that will be affected and, although it will suffer the worst, the entire world over is going to go through a change unheard of in its entire history.

(Für die Lesern, dass deutschen sind, klicken Sie bitte auf dem original Link.)

The Bank for International Settlements (BIS) is the current situation on the financial markets as worse than before the Lehman bankruptcy. The warning of the BIS could be the reason why the U.S. Federal Reserve decided to continue indefinitely to print money: Central banks have lost control of the debt-tide and give up.

The decision by the U.S. Federal Reserve to continue indefinitely to print money (here ) might have fallen on “orders from above”.

Apparently, the central banks dawns that it is tight.

Very narrow.

The most powerful bank in the world, the Bank for International Settlements (BIS) has published a few days ago in its quarterly report for the possible end of the flood of money directly addressed – and at the same time described the situation on the debt markets as extremely critical. The “extraordinary measures by central banks” – aka the unrestrained printing – had awakened in the markets the illusion that the massive liquidity pumped into the market could solve the fundamental problems (more on the huge rise in debt – here ). Continue reading

BRICS countries come close to establishing reserve bank

The BRICS member-countries have come close to establishing a reserve bank which will operate as a stabilization fund, Chinese Finance Minister Chen Zhu Guangyao said. Should such a fund be set up, it will prove helpful in restricting the dollar’s influence on the developing countries’ economies, experts say. Continue reading

The Day the Dollar Dies

Twenty-one men representing China’s most powerful institutions file into a conference room atop the icc Tower looming over Victoria Harbor. The Politburo Standing Committee has mustered the ceos of China’s four largest banks, Sinopec, and several other state-owned multinationals, plus officers from the Central Military Commission and a pair of academics from China’s top technology universities.

The general secretary formally opens the meeting. “As you know, the United States of America continues to manipulate its currency,” he begins. “It is devaluing its dollar, which steals away trade and reduces the value of its debts. The Standing Committee manages the yuan’s value to protect our manufacturing base and support employment.”

The secretary leans back ever so slightly to say what everyone in the room already knows, and the reason why they are here. “Three days ago, the Federal Reserve System announced its sixth quantitative easing policy in the past seven years.”

And now, the marching orders. Continue reading