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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (85524)	1/3/2012 12:48:48 AM
From: Cogito Ergo Sum	1 Recommendation Respond to of 217838

From: russet1/3/2012 12:15:02 AM of 2759 Federal Reserve Expands Balance Sheet $100 B in Last Two Weeks by Currency Swaps By Bud Conrad caseyresearch.com Below is an update of a chart I developed, showing the history of the size of Federal Reserve swaps of currencies with foreign central banks. In this swap, each central bank prints up its currency and gives it to another central bank. The biggest US partner so far is the European Central Bank (ECB) which, in turn, is providing dollar-denominated loans to European banks. This is another indirect way for the US to expand its creation of dollars and at the same time support European banks. The historical picture below shows that the program grew to $600 billion at the peak of the 2008 credit crisis. If the current spike is the start of something similar, we could easily return to that level. At almost $100 billion in two weeks, we'd get there in as little as three months. ( by the New York Federal Reserve, Dec 29.) The biggest swap in the current round is $85B with the ECB, and an additional $14B was swapped by the Bank of Japan. A trivial $320M was swapped by the Swiss National Bank. These currency swaps are another back-door currency creation and manipulation scheme being carried out by the central banks with almost no supervision, approval, nor accountability by their respective governments. When Bernanke was asked by the Senate where the $600B swaps went the last time, he pleaded that he didn't know because he only gave the money to the other central banks, which then made the loans to specific banks. So this activity is also a scheme for hiding who the final recipients are. I think these actions are unconstitutional, but I'm not expecting anybody to bring up the issue, as the Fed is operating pretty much as it wants to. Looking to the future, the Fed can easily make the action as big as the last $600B (QE2) without making any actual pronouncement to call it QE3. I think the Fed is on its way to new levels of "printing," as are the other central banks. This is bullish for gold. Emphasis added...