Comments on: SHOW ME THE MONEY

By: Golem XIV

Golem XIV — Mon, 10 Oct 2011 13:48:00 +0000

Hello okie farmer,

Welcome. I tend to agree with your assessment of the root casue of the hostility between Washington and Europe. I would add that DC is pissed as hell that Berlin finally stood up and said, “Actually we don’t take orders from you any more.” By my reckoning that happened at the G20 of ’10.

As for the US Treasurey, the FED and BIS there may well be disagreements I know nothing of. But to my mind they are fundamentally of like mind and outlook. On the same side broadly.

By: okie farmer

okie farmer — Sun, 09 Oct 2011 23:47:24 +0000

In reply to The Dork of Cork.

Uh, no, Dork. The US is trying to get Europe to do what the US did, massive bailout of banks (still ongoing in US). US banks level of risk in EU banks is $640 billion – or more. When Geithner invited himself to Eruofin meeting he urged a TARP for EZ. These criminals don’t care about anything in this crisis except saving the banks.

US wants a weaker dollar just as the EZ does. Trouble with that strategy is China keeps buying dollars and euros with plenty of excess reserves of both currencies – keeps the yuan undervalued, you know.

The long term US hostility to EU has everything to do with the EU’s social democracies, and nothing to do with disagreements between BIS and US Treasury.

By: 24K

24K — Sun, 09 Oct 2011 19:20:04 +0000

An oldie but a goodie.

Where is the money? Where did it go?
I tell you now people, nobody know.
Tell you now people, went up in smoke.
Tell you now people, that aint no joke.

Quantitative easing, where did it go?
People are looking, nobody know.
People are searching, under the floor.
People are laughing, behind closed door.

I tell you now people, tell you right now.
How long it take? To hit the ground?
How long it take? To hear this sound?
I tell you now people, it’s making me frown.

But people are waking, people wake up.
People are blinking, hey wassup?
People are thinking, what the f?
people are starting, to sharpen stuff.

By: Neil

Neil — Sat, 08 Oct 2011 09:32:27 +0000

In reply to Yossarian. Yossarian, UST = US Treasury, BIS = Bank for International Settlements (which I was unaware of before). But someone else will have to explain what's going on.

By: Neil

Neil — Sat, 08 Oct 2011 08:45:23 +0000

Golem asks “Where is my money, Mr King?”

This is the same Mervyn King who has said:

“The sheer scale of support to the banking sector is breathtaking. In the UK, in the form of direct or guaranteed loans and equity investment, it is not far short of a trillion (that is, one thousand billion) pounds, close to two-thirds of the annual output of the entire economy. To paraphrase a great wartime leader, never in the field of financial endeavour has so much money been owed by so few to so many. And, one might add, so far with little real reform.”

For an answer to Golem’s question, see the recent report by the New Economics Foundation, Where did our money go?

http://www.neweconomics.org/publications/where-did-our-money-go

By: johnm33

johnm33 — Sat, 08 Oct 2011 08:24:02 +0000

These first 2 links show views about the extent of the bailout
http://www.money.co.uk/article/1002877-bank-bailout-to-add-up-to-1-5-trillion-to-public-debt.htm
http://www.bbc.co.uk/news/business-11462440
If we can agree that £1.3T is about right and that its been going on for four years that makes it £325Billion pa or £0.89Billion a day. Thats about the cost of the O2 dome or wembley stadium. This means we could have had 3 O2 domes in every place[Uk wide http://en.wikipedia.org/wiki/List_of_largest_United_Kingdom_settlements_by_population ] with a population higher than 180,000 and 2 in every place with a population of 50,000 up to 180,000 [every year for 4 years mind] and for anyone who wanted it you could have offered a new wembley stadiun as an alternative, or any combination of the two. This would have been almost as stupid as giving it all to bankrupt banks, but not quite.
Now with this new £75billion QE2 they are going to buy assets the banks dont want, that’s a bit like you or me arranging an overdraft then calling every demolition site used car lot within a square mile and asking them if there are any cars they’re having trouble getting rid of, and buying the lot. Or we could form a template for creating new banks, supervised by local politicians and open a new bank dealing with local [say35miles] businesses in every town with a population of more than 95000, all with a £1billion of assets.

By: Yossarian

Yossarian — Sat, 08 Oct 2011 04:27:03 +0000

In reply to The Dork of Cork. Can you please explain further, I am not understanding the UST/BIS war...

By: The Dork of Cork

The Dork of Cork — Fri, 07 Oct 2011 20:42:47 +0000

@Neil
The US treasuary needs to destabilize Europe a little bit more so that it can drive people into the arms of the dollar.
But the euro area balance sheet has increased somewhat nearly up 300 billion from 2 trillion in a few months.
This gives its base more stability.
The revaluation of Gold last week means that euro area gold covers physical notes at a 2:1 ratio – the highest ratio ever I think.
This is a limited war between the US treasuary & the BIS.

By: Neil

Neil — Fri, 07 Oct 2011 16:52:09 +0000

bill40: “States are trying to bail out a banking sector that is by many multiples bigger than the state.”

Bullseye.

Meanwhile Fitch has downgraded Italy (one notch) and Spain (two). Portugal is unchanged, but outlook for all three is negative.

By: bill40

bill40 — Fri, 07 Oct 2011 15:50:09 +0000

In reply to richard in norway. Richard. An excellent comment, you just need to edit out the last line. It is not necessary.