33 Momentous Hours in the Last Days of Central Banking begin this evening

Cassandra Syndrome

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This evening at 6:15 the Federal Reserve will announce the extent of its second round of Quantitative Easing program after its postponed October meeting to coincide with the mid term elections. "Economists" expect an announcement of $500 Billion, but as was mentioned in a previous thread here, Goldman Sachs says it needs to be up to $4 Trillion. No doubt $500 Billion will just be the start to avoid a dollar collapse, but to what extent has the equity markets priced in the decision? BTW rate will be held at 0.25%

18 Hours later the Bank of England makes its decision on rates (will keep them at a record low of 0.5%) and also if and when its QE2 kicks off. The extent of the Federal Reserve decision will influence to a certain degree their levels of QE2, as a weak dollar would harm their exports.

Within an hour the ECB makes it decision, expected to keep rates at 1%. But Trichet's interview at 1:30pm our time, will be closely monitored for any hint of QE1 as a weak dollar would harm Eurozone exports.

Finally after midnight the Bank of Japan is expected to hold its rate at 0.1%, but again with the Yen now at near record heights against the weakening dollar, they may have to manipulate its currency and continue with its 10 year QE program.

Within 33 hours critical decisions from the Central Banks representing 50% of the world economy's GDP are being made that will determine how finite the existance of central banking, fractional reserve banking and fiat currency really is. Even Mervyn King, head of the Bank of England has called for the end of Fractional Reserve Banking.

These are momentous days that we live in, lets hope it is all part of the Second Renaissance.
 


HarshBuzz

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keep an eye out for low-flying helicopters CS!
 

firefly123

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So will I stick me money under the mattress or invest in tinned goods again. Seriously the missus is getting a right pain eating beans!(could be gas)
 

Brehon

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Interesting OP CS
Presume lords and masters will somehow keep the circus going until a butterfly flaps its wings in a south american jungle and the financial system collapses under its own weight. Looks like it will be back to gold, silver and platinum, local currencies and bartering soon.
actually we are nearly there...
 

HarshBuzz

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So will I stick me money under the mattress or invest in tinned goods again. Seriously the missus is getting a right pain eating beans!(could be gas)
buy stocks obviously
 

needle_too

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Telemachus

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Confederated Slave holdings. How's that one holding up?
 

HarshBuzz

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DCon

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D

Dylan2010

Bill Gross , the top dog of the bond market referred to the US position as a ponzi scheme. It doesnt matter what decisions are made this evening as eventually even the Fed has to follow the market. The US financial market is 60Trillion+ , an extra trillion by the Fed just buys some time and ends up just being front run anyhow, then everyone goes "was that it!"

Pushing on a string is the apt metaphore here , they have got to be seen to be doing something but it wont matter
 

kerdasi amaq

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They have to put the money at the bottom of the financial pile and then watch it trickle upwards through the economy.

i.e. a bailout for the little people.
 

DCon

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We do not entertain anonymous discussions on share prices, I've made that clear. No more of that please.
Apologies. It was not intended as a share price discussion. More of a comment on Ahern's ridiculous claim.

I will refrain in future.
 

Squire Allworthy

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The link is worth reading.

Mervyn King is a very capable pair of hands at the BOE. In the last few years he has made numerous sound observations on Banking, Financial markets etc. His values are traditional and sensible. At heart he belongs to the old school of Banking. Safe and solid would be his aspirations. Fit for purpose and robust.

Hard to disagree.

They have to put the money at the bottom of the financial pile and then watch it trickle upwards through the economy.

i.e. a bailout for the little people.
That would make a lot more sense than much of what is happening in Ireland and at least those receiving would be likely to be grateful.
 
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richie268

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We do not entertain anonymous discussions on share prices, I've made that clear. No more of that please.
And in the mean time the pig farmer was buying apples from the orchard as nobody else would buy them and he bought more and more and more and for every one he bought one rotted.
The farmer now owns 95% of the apple farm and yet he is still buying apples .
 

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