Good News For The Gold Investor: Central Banks To Offer Unlimited Dollar Funds
Tuesday, 14. October 2008, 04:47:39
Jesse provides the details that the central banks are going to offer unlimited dollar funds.
The central bankers are going beyond helicopter drops to announce a coordinated unleashing of their monetary printing presses. This is great news for gold investors like me, as it appears like the Central Banks are going to zero percent interest; yes hyperinflation is on the way; gold is going to monetized and is going to soar well beyond $1,000. We will have hyperinflation in consumer goods, which will be in short supply, and asset depreciation at the same time.
Elaine Meinel Supkis relates: This is no helicopter drop. This is every bank bomber on earth is going to load up with paper money backed by vast government debts and then it will dump the entire mess right on top of the huge pile of worthless paper equities. This supposedly will restart lending in a world awash in red ink. When banks see no profits in lending, they stop lending. When debtors are too deep in debt, bankers sensibly will stop lending. When nations lend too much to themselves, they find it increasingly hard to attract money from other nations and end up bankrupt. When anyone over-expands use of credit, they end up either paying very high interest rates or going under.
Here is the Fed announcement which came out at 2PM today: In order to provide broad access to liquidity and funding to financial institutions, the Bank of England (BoE), the European Central Bank (ECB), the Federal Reserve, the Bank of Japan, and the Swiss National Bank (SNB) are jointly announcing further measures to improve liquidity in short-term U.S. dollar funding markets.
The BoE, ECB, and SNB will conduct tenders of U.S. dollar funding at 7-day, 28-day, and 84-day maturities at fixed interest rates for full allotment. Funds will be provided at a fixed interest rate, set in advance of each operation. Counterparties in these operations will be able to borrow any amount they wish against the appropriate collateral in each jurisdiction. Accordingly, sizes of the reciprocal currency arrangements (swap lines) between the Federal Reserve and the BoE, the ECB, and the SNB will be increased to accommodate whatever quantity of U.S. dollar funding is demanded. The Bank of Japan will be considering the introduction of similar measures.
Central banks will continue to work together and are prepared to take whatever measures are necessary to provide sufficient liquidity in short-term funding markets.
To assist in the expansion of these operations, the Federal Open Market Committee has authorized increases in the sizes of its temporary swap facilities with the BoE, the ECB, and the SNB, so that these central banks can provide U.S. dollar funding in quantities sufficient to meet demand.
These arrangements have been authorized through April 30, 2009.
The central bankers are going beyond helicopter drops to announce a coordinated unleashing of their monetary printing presses. This is great news for gold investors like me, as it appears like the Central Banks are going to zero percent interest; yes hyperinflation is on the way; gold is going to monetized and is going to soar well beyond $1,000. We will have hyperinflation in consumer goods, which will be in short supply, and asset depreciation at the same time.
Elaine Meinel Supkis relates: This is no helicopter drop. This is every bank bomber on earth is going to load up with paper money backed by vast government debts and then it will dump the entire mess right on top of the huge pile of worthless paper equities. This supposedly will restart lending in a world awash in red ink. When banks see no profits in lending, they stop lending. When debtors are too deep in debt, bankers sensibly will stop lending. When nations lend too much to themselves, they find it increasingly hard to attract money from other nations and end up bankrupt. When anyone over-expands use of credit, they end up either paying very high interest rates or going under.
Here is the Fed announcement which came out at 2PM today: In order to provide broad access to liquidity and funding to financial institutions, the Bank of England (BoE), the European Central Bank (ECB), the Federal Reserve, the Bank of Japan, and the Swiss National Bank (SNB) are jointly announcing further measures to improve liquidity in short-term U.S. dollar funding markets.
The BoE, ECB, and SNB will conduct tenders of U.S. dollar funding at 7-day, 28-day, and 84-day maturities at fixed interest rates for full allotment. Funds will be provided at a fixed interest rate, set in advance of each operation. Counterparties in these operations will be able to borrow any amount they wish against the appropriate collateral in each jurisdiction. Accordingly, sizes of the reciprocal currency arrangements (swap lines) between the Federal Reserve and the BoE, the ECB, and the SNB will be increased to accommodate whatever quantity of U.S. dollar funding is demanded. The Bank of Japan will be considering the introduction of similar measures.
Central banks will continue to work together and are prepared to take whatever measures are necessary to provide sufficient liquidity in short-term funding markets.
To assist in the expansion of these operations, the Federal Open Market Committee has authorized increases in the sizes of its temporary swap facilities with the BoE, the ECB, and the SNB, so that these central banks can provide U.S. dollar funding in quantities sufficient to meet demand.
These arrangements have been authorized through April 30, 2009.
WIDGETIZE