> I wondered if you could answer a question....
I like questions. Please ask away.
> I saw that the fed has something called term auction facilities, and that these are new instruments (invented in December?) to improve liquidity or something like that.
Here is the Fed's press release about this subject.
http://www.federalreserve.gov/newsevents/press/monetary/20071212a.htm
It's a 28 day loan that is at a reduced interest rate below the cost of money at the normal discount window. It's because other banks won't loan money because they can't get it back if the bank goes bankrupt. So, the Federal Reserve cooked up a new scheme to get more money into the system.
> what are the implications of this?
The most significant implication is that the banks won't loan each other money. It also implies that there isn't enough credit made available at prices the banks can afford to keep out of bankrupcy. It also means that previous efforts to increase the liquidity of the credit markets are failing, even with the reduction of reserve requirements to 0 and the discount window being throw wide open.
> Is it normal for the fed to invent new ways for the banks to find money (as it seems that this is) OR is this yet another REALLY bad sign (as opposed to other signs that are bad but happen occasionally and things turn around eventually)?
It's not normal. Matter of fact, it's quite troubling. As the Comptroller of the US mentioned, these risky approachs are going to cause the failure of banks. We have already had our first bank go belly up this year. Our financial system is tapped together with hope and cheap money. The fed only has a few more points and it's going to be free money. The dollar continues to decline against other currencies as the interest rates go up. I remember complaining last year about 1.36 Dollars to the Euro. It's 1.48 dollars to the euro.. a huge difference. The price changes are starting wind their way through the economy, causing more pain to people on the lower social/economic scale. It's going to be rough. Check out the tent cities in Ontario that are causing the problems with the folks on the lower scale. People can't afford to livelike they have in the past anymore. All thanks to irresponsible greedy and reckless schemes like this.
> What effect will having debt have?
Debt is bad in general. You are exchanging your freedom for a good or service. In some cases, like a home, it makes sense. When it doesn't make sense is when you can't pay it back and you are "teased" into the debt. Examples include giving credit cards to people who can't repay or offering extremely low rate ARMs knowing that the person can not repay.
> One more question--what are the risks for the average joe who has some debt (say credit cards or mortgage or car payments) in this financial hurricane that seems to be approaching?
Losing your house, car, and falling into bankrupcy. The bankrupcy laws changed recently, thanks to our subprime champions like Washington Mutual and Countrywide. Now, you have to pay it back. You don't get to walk away from your debts anymore. The ring is now complete, once you get into the spiral, you never get out.
> Right now this seems to be a lot of action in the stratosphere of financial "stuff", and there is a little bit of trickle, but mostly the average person does not seem to see much effect so far.
The average person is completely unaware. They just don't know how big the tidal wave of debt is. A few people see it and are putting out boats to escape it. Cast off your debts.
4 comments:
John this is off the subject but I need some input,
Sounds like a multiple choice question to me.
(don't mind my black humor. It helps to maintain some sanity amid a governmental psychosis)
U.S. Troops Asked If They Would Shoot American Citizens
Iraq vet exposes how he was trained to round up Americans in martial law exercise, asked if he would kill his own friends and family
Paul Joseph Watson
Prison Planet
Monday, February 4th, 2008
U.S. troops are being trained to conduct round-ups, confiscate guns and shoot American citizens, including their own friends and family members, as part of a long-standing program to prepare for the declaration of martial law, according to a soldier who recently returned from Iraq.
We received an e mail from "Scott", a member of a pipefitters union that runs an apprenticeship program called Helmets To Hard Hats, which according to its website, "Is a national program that connects National Guard, Reserve and transitioning active-duty military members with quality career training and employment opportunities within the construction industry."
Scott writes that his company hired a soldier who had recently returned from Iraq, who told him that U.S. troops were being quizzed on whether or not they would be prepared to shoot their own friends and family members during a national state of emergency in America.
(Article continues below)
"I have become very close to this young man and have gained his respect and trust," writes Scott. "I want you to know that he informed me about one particular training exercise his superiors made them perform. It was concerning the rounding up of American citizens that disobey any type of martial law or in other words any type of infringement on our freedoms."
"He was asked if he could shoot his friends or family members if ordered to do so. At the time he said he could," writes Scott.
Scott says that the soldier later "had time to clear his head" and realize the truth, recanting his vow to kill his own countrymen if ordered to do so.
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The issue of whether U.S. troops would be prepared to round-up, disarm and if necessary shoot Americans who disobeyed orders during a state of martial law is a question that military chiefs have been attempting to answer for at least 15 years.
Its known origins can be traced back to an October 1994 Marine questionnaire out of the Twentynine Palms Marine Base in California. Recruits were asked 46 questions, including whether they would kill U.S. citizens who refused to surrender their firearms.
Documentary film maker Alex Jones brought to light similar training programs that were taking place across the country in the late 90's which revolved around U.S. Marines being trained to arrest American citizens and take them to internment camps.
During one such program in Oakland California, dubbed "Operation Urban Warrior," Marines refused to answer if they would target American citizens for gun confiscation if ordered to do so.
During hurricane Katrina, National Guard units were ordered to confiscate guns belonging to New Orleans residents.
As we first exposed in May 2006, Clergy Response Teams are being trained by the federal government and FEMA to "quell dissent" and pacify citizens to obey the government in the event of a declaration of martial law.
Pastors and other religious representatives are being taught to become secret police enforcers who teach their congregations to "obey the government" in preparation for the implementation of martial law, property and firearm seizures, mass vaccination programs and forced relocation.
Many scoffed at our original story, which was based on the testimony of a whistleblower who was asked to participate in the program. Claims that the story was a conspiracy theory soon evaporated when a mainstream KSLA news report confirmed the existence of the program.
The experiences of U.S. troops in the worst areas of Iraq, where soldiers are ordered to go door to door and arrest all men of military age as well as confiscate their weapons, is a mere portend of what is being planned for America if these training programs ever come to fruition.
I don't have an opinion on political issues, which this is.
The guy acts like that is new. I lived through hurricane hugo and let me tell you the few days the national guard was called out, people were being jerks and the national guard would have shot you in a heartbeat. My momma always told me, "Sonny boy, (she liked to call me that cause I was so bright) dont't mess with anyone holding a gun
This is somewhat political but it explains our monetary poicies,
The Canadian Universities are teaching student about the North American Intergration and North American Currency.
The Buffallo Bills will be the Toronto Bills.
We do they lie to us?
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