The Big Collapse Could Be Very Near

[peaceandlove]

Posted by FEVER I AM today:

For those of you who missed these stories over the weekend, here is an EXCELLENT take on this news. Remember also, Geithner is off to China to plead with them again...

I will most likely do a video on this. In case you didn't notice - the Fed is starting to Panic... what they are doing is NOT having the effect they expected. the Dollar has been tanking all week (despite stories in the British Press, the only reason the Pound is climbing against the Dollar is that it isn't falling quite as quickly... compare what's been happening to the Canadian Dollar during the same time period.)

Get ready folks

Peace and Love

http://feveriam.blogspot.com/
FEVER I AM youtube channel: http://www.youtube.com/user/FeverIAm?blend=1

The Big Collapse Could Be Very Near

SUNDAY, MAY 31, 2009

The Federal Reserve appears to be increasingly nervous about the long term bond market. This is serious. How panicked are they? After leaking a story on Friday, they are back at it on Sunday.

The Federal Reserve leaked to CNBC's Steve Liesman on Friday that they weren't targeting long rates. Why such a leak? Probably because the Fed did not want to appear impotent in controlling the long rate. So they put out the word through Liesman that they weren't targetting the long rate. Can you imagine what would happen to the markets if it sensed long rates were beyond the control of the Fed?

The Fed can of course print money to buy up every Treasury bond in existence, but the inflationary ramifications would be Zimbabwe like, and crush the dollar on international currency markets. Are we near the phase where all hell breaks loose? I have never even answered, maybe, to this question before. It's always been, "no." Now it's maybe.

Continues: http://www.economicpolicyjournal.com...very-near.html



This article posted at Solari.com/blog

Treasuries, Dollar ‘Only Game in Town’ as China Buys

By Daniel Kruger and Susanne Walker
June 1 (Bloomberg)

Excerpt:

China’s ‘Worried’

Geithner arrived in Beijing yesterday with a pledge to control borrowing as he sought to reassure China its holdings of U.S. government debt are safe. “No one is going to be more concerned about future deficits than we are,” he told reporters on the way to two days of meetings in China’s capital.

Chinese Premier Wen Jiabao said in March that the country was “worried” about its investment and wanted assurances the value of its holdings would be protected.

“I hope Geithner’s visit can soothe our nerves,” said Yu Yongding, a senior researcher at the government-backed Chinese Academy of Social Sciences and a former central bank adviser. “The Chinese public is worried about the safety of its foreign- exchange reserves,” Yu said in an e-mail.

Seventeen of 23 Chinese economists surveyed in connection with Geithner’s visit said Treasuries are a “great risk” for the economy, according to a Chinese state media report yesterday. Still, the majority argued against quickly cutting them, the Beijing-based Global Times reported.

Complete Article: http://www.bloomberg.com/apps/news?p...rIU&refer=home



This at Market Ticker:

The News Unreported In The US: Turbo Timmy

Tuesday, June 2. 2009

Funny how Bloomberg, who ran this originally, edited the headline and removed it. Did someone in The Administration or Treasury call Bloomberg and complain?

Chinese Students Laugh At Tim Geithner http://www.businessinsider.com/chine...eithner-2009-6

Telegraph: http://www.telegraph.co.uk/finance/f...-are-safe.html
In his first official visit to China since becoming Treasury Secretary, Mr Geithner told politicians and academics in Beijing that he still supports a strong US dollar, and insisted that the trillions of dollars of Chinese investments would not be unduly damaged by the economic crisis. Speaking at Peking University, Mr Geithner said: "Chinese assets are very safe." The comment provoked loud laughter from the audience of students.

This isn't worth a mention over here?

University students can see through our BS in seconds, but the sheeple here in America don't, and we continue to allow these clowns to have their hands on the levers of fiscal policy.

Simply amazing; the Chinese have clearly figured it out, and they're not beyond expressing it.

Of course our so-called "media", say much less our Washington Political Establishment, provide all the trappings of undeserved decorum to someone when college students in a foreign country can see right through it.

Turbo Timmy and our media continue to insist on the exquisite tailoring in Timmy's new suit, while the Chinese see his schlong and beer belly hanging out in the breeze.

Complete commentary with links: http://market-ticker.denninger.net/a...rbo-Timmy.html