"In fact, the Fed is at present much more interested in supplying dollars than in buying them. It has committed itself to providing liquidity to the banks at rates closer to zero per cent.

The banks can then presumably lend this money to households and firms at much higher interest rates and pocket the difference. For example, the mortgage rate in the US has been hovering around five per cent.

While getting near-free money from the Fed and then being able to lend it at five per cent provides enormous potential for profits (and large bonuses and salary increases for top management), it also reflects the high risk of default the banks perceive as a threat, given the defaults that have taken place on past lending."

So having participated KNOWINGLY in the fraud foisted on the U.S. public, the banks are now worried about their bottomlines. And the ObamaRahma Admin is quite willing- hell, the Admin is encouraging them- to provide support for the financial industry all the while U.S. citizens are going without food and jobs and losing their homes. And sending the country into more debt with a war that does nothing except avoid dealing with the Durand Line issue that is the root of the problems in the AfPak region. Oh, yes, it also kills those we don’t want to acknowledge the humanity of.

"If inflation is not a real danger then why is the dollar depreciating? Since 2002, the US government deficits have been mounting as have the trade deficits. These two trends have brought about a long-term average decline of the dollar in spite of several short-term upswings.

Part of the new dollar crisis can be attributed to new monetary policy from the Fed which is to lend money to the member banks in the US at virtually 0 per cent. This has enabled these banks to invest some of that money in the high-performing emerging economies in Latin America and Asia where the rate of return is much higher than what can be earned in the US. This is called the dollar "carry" trade."

From here.

How long will it be before U.S. citizens call bullshit on the ObamaRahma Admin?



Jobs I've had: mowing lawns,delivering newspapers,Bedding deliveryman, short order cook,vietnam vet,bookkeeeper in Fulton Fish Market,merchandiser/asst. buyer in Garment District,Womens shoe store salesman and asst.mgr.,wholesale egg delivery man,telephone company phone booth and car washer,taxi driver,mud carrier for bricklayers, college student,radio/tv repair training, fm disc jockey, dealer,Vegas bartender,registered commodity representative(broker and mgr.),programmer,systems programmer,systems engineer,pre and post sales engineer,computer admin, computer systems support,notary public and probably a couple of other jobs I've forgotten.