mamboni
27th March 2012, 10:45 AM
It's Official - The Fed Is Now Buying European Government Bonds
http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://www.zerohedge.com/users/tyler-durden)
Submitted by Tyler Durden (http://www.zerohedge.com/users/tyler-durden) on 03/27/2012 11:42 -0400
European Central Bank (http://www.zerohedge.com/taxonomy_vtn/term/9235)
Greece (http://www.zerohedge.com/taxonomy_vtn/term/11787)
International Monetary Fund (http://www.zerohedge.com/taxonomy_vtn/term/9215)
Sovereign Debt (http://www.zerohedge.com/taxonomy_vtn/term/9776)
William Dudley (http://www.zerohedge.com/taxonomy_vtn/term/9061)
As if the 'risk-less' dollar-swaps the Fed has extended to any and every major central bank were not enough, William Dudley just unashamedly admitted that the Fed now holds 'a very small amount of European Sovereign Debt'. Explaining this position, as Bloomberg notes:
*DUDLEY: FED HOLDS OVERSEAS SOVEREIGN DEBT TO MANAGE RESERVES
*DUDLEY: HIGH BAR FOR ADDITIONAL PURCHASES OF EUROPE DEBT
Dudley, testifying to a House panel, noted that he doesn't see more efforts by the Fed to buffer the US from Europe's tempests and believes European banks are deleveraging in an orderly manner. So not only is the US taxpayer bailing out Europe via the IMF (as we noted here a week (http://www.zerohedge.com/news/us-taxpayers-commence-bailing-out-ecb-greece-intermediary) ago using Greece as an intermediary) and the Fed is providing limitless USD swap lines but now we join the ECB in monetizing European government bonds - something we warned might happen back in December 2010 (http://www.zerohedge.com/article/imf-tells-eurozone-buy-more-more-more-bonds-and-it-needs-bigger-boat-er-rescue-fund-belgium-). As for being a small amount - wasn't MF Global's holding relatively small too? And aren't we getting a little full from all this buying?
Mamboni comments: This is illegal. But being that the rule of law died awhile ago it's a pointless objection. Gold is down today, which is laughable. Nothing will be done about this. Anyone who is still unconvinced that the endgame is debt monetization and currency devaluation to infinity is braindead and deserving of the nearest tar pit. For the rest of us, there is physical gold (Turkey loves it!) and silver.
http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://www.zerohedge.com/users/tyler-durden)
Submitted by Tyler Durden (http://www.zerohedge.com/users/tyler-durden) on 03/27/2012 11:42 -0400
European Central Bank (http://www.zerohedge.com/taxonomy_vtn/term/9235)
Greece (http://www.zerohedge.com/taxonomy_vtn/term/11787)
International Monetary Fund (http://www.zerohedge.com/taxonomy_vtn/term/9215)
Sovereign Debt (http://www.zerohedge.com/taxonomy_vtn/term/9776)
William Dudley (http://www.zerohedge.com/taxonomy_vtn/term/9061)
As if the 'risk-less' dollar-swaps the Fed has extended to any and every major central bank were not enough, William Dudley just unashamedly admitted that the Fed now holds 'a very small amount of European Sovereign Debt'. Explaining this position, as Bloomberg notes:
*DUDLEY: FED HOLDS OVERSEAS SOVEREIGN DEBT TO MANAGE RESERVES
*DUDLEY: HIGH BAR FOR ADDITIONAL PURCHASES OF EUROPE DEBT
Dudley, testifying to a House panel, noted that he doesn't see more efforts by the Fed to buffer the US from Europe's tempests and believes European banks are deleveraging in an orderly manner. So not only is the US taxpayer bailing out Europe via the IMF (as we noted here a week (http://www.zerohedge.com/news/us-taxpayers-commence-bailing-out-ecb-greece-intermediary) ago using Greece as an intermediary) and the Fed is providing limitless USD swap lines but now we join the ECB in monetizing European government bonds - something we warned might happen back in December 2010 (http://www.zerohedge.com/article/imf-tells-eurozone-buy-more-more-more-bonds-and-it-needs-bigger-boat-er-rescue-fund-belgium-). As for being a small amount - wasn't MF Global's holding relatively small too? And aren't we getting a little full from all this buying?
Mamboni comments: This is illegal. But being that the rule of law died awhile ago it's a pointless objection. Gold is down today, which is laughable. Nothing will be done about this. Anyone who is still unconvinced that the endgame is debt monetization and currency devaluation to infinity is braindead and deserving of the nearest tar pit. For the rest of us, there is physical gold (Turkey loves it!) and silver.