Posts Tagged ‘boe’

FED EXTENDS USD SWAPS THROUGH SUMMER 2011

Courtesy of The Pragmatic Capitalist 

The Fed announced this morning that they will be extending U.S. dollar liquidity swaps through summer of 2011. This is basically their way of saying that they’re worried about the risk of a dollar funding crisis still.  That’s not unreasonable given the elevated risks in Europe (it’s nice to see a more proactive Fed), however, it does expose the USA to a risk that it should never have – foreign denominated debt risk.  They issued this useful primer on swaps along with the announcement:

Why has the Federal Reserve re-established temporary U.S. dollar liquidity swap facilities with foreign central banks?

The swap facilities announced in May 2010 respond to the re-emergence of strains in short term funding markets in Europe. They are designed to improve liquidity conditions in global money markets and to minimize the risk that strains abroad could spread to U.S. markets, by providing foreign central banks with the capacity to deliver U.S. dollar funding to institutions in their jurisdictions.

With which central banks has the Federal Reserve entered into swap facilities?

The Federal Reserve has established swap arrangements with the Bank of Canada (BOC), the Bank of England (BOE), the European Central Bank (ECB), the Swiss National Bank (SNB), and the Bank of Japan (BOJ).

How will the swap facilities function?

The swap lines with the ECB, BOE, SNB and BOJ will provide these central banks with the capacity to conduct tenders of U.S. dollars in their local markets at fixed local rates for full allotment, similar to arrangements that had been in place previously. The swap line with the Bank of Canada allows for drawings of up to $30 billion. The terms, structure, and operational mechanics of these swap agreements closely parallel the arrangements that expired on February 1, 2010. For reference please see the attached link.

http://www.federalreserve.gov/monetarypolicy/bst_swapfaqs.htm

For how long are the swap facilities expected to be operational?

These swap arrangements have been authorized through August 1, 2011. Central banks may request drawings on their swap lines up to the date of expiration.

Is the Federal Reserve exposed to foreign exchange or private bank risk in extending these lines?

No. Dollars provided through the reciprocal currency swaps are provided by the Federal Reserve to foreign central banks, not to the institutions obtaining the funding in these operations. The foreign central bank receiving dollars determines the terms on which it will lend dollars onward to


continue reading


Tags: , , , , , , , , ,




When Monetizing 12% Percent Of GDP Isn´t Enough…….

When Monetizing 12% Percent Of GDP Isn´t Enough…….

Courtesy of Jan-Martin Feddersen at Immobilienblasen

Not quite an "Exit Strategy"……. This Cartoon on "Green Shoots" is spot on…..  As long as the pound & gilts are not crashing this will continue…..I´m pretty sure Bernanke is watching the market reaction very closely…. Especially with the Fed running low on ammo….. Read A 300-year-old example of quantitative easing…. John Law, Alan Greenspan, Ben Bernanke… via The Mess That Greenspan Made as a reminder what can happen…

trillions of dollars

The governor’s insatiable appetite for QE FT Alphaville

The Governor invited the Committee to vote on the proposition that:

Bank Rate should be maintained at 0.5%;

The Bank of England should finance a further £50 billion of asset purchases by the creation of central bank reserves, implying a total quantity of £175 billion of such asset purchases. The Bank should seek to complete the additional purchases within the next three months.

Six members of the Committee (Charles Bean, Paul Tucker, Kate Barker, Spencer Dale, Paul Fisher and Andrew Sentance) voted in favour of the proposition. Three members of the Committee (the Governor, Tim Besley and David Miles) voted against, preferring to increase the size of the asset purchase programme by £75 billion to a total of £200 billion.

Yep, Mervyn King, together with Besley and Miles wanted the rate of monetary stimulus increasing, not just extending at the current rate of £50bn-a-quarter. That was good for half a cent off sterling versus the dollar and a third of a cent v the euro on Wednesday morning. Gilts, of course, spiked higher.

Somebody stop me Alice Cook from the great blog UK Bubble

The extraordinary thing about UK monetary policy today is how close it is shadowing fiscal policy. This year, the Bank of England printing presses will produce roughly the same amount of new money as this year’s fiscal deficit. Or to put it more bluntly, the private sector have, on a net basis, stopped lending money to the government.

The Casey Report

> The estimated issuance is based on this "optimitic" forecast…. Especially compared to the IMF, OECD, Bloomberg


continue reading


Tags: , , , , , , , , , , ,




 
 
 

Phil's Favorites

"I'll buy on the next pullback"

 

“I’ll buy on the next pullback”

Courtesy of 

There are countless people out there who told themselves they were going to buy Bitcoin the next time they got the opportunity to do so at lower prices. I can’t prove this, but I’d bet good money that most of them aren’t doing what they said they were going to do.

If you were too scared to buy on the way up, you’re definitely going to be too scared to buy on the way down. 

It’s funny how people tell themselves, “I’ll buy on the next pullback,” without considering the news that drives prices lower will ...



more from Ilene

Digital Currencies

"I'll buy on the next pullback"

 

“I’ll buy on the next pullback”

Courtesy of 

There are countless people out there who told themselves they were going to buy Bitcoin the next time they got the opportunity to do so at lower prices. I can’t prove this, but I’d bet good money that most of them aren’t doing what they said they were going to do.

If you were too scared to buy on the way up, you’re definitely going to be too scared to buy on the way down. 

It’s funny how people tell themselves, “I’ll buy on the next pullback,” without considering the news that drives prices lower will ...



more from Bitcoin

Biotech/COVID-19

World's worst pandemic leaders: 5 presidents and prime ministers who badly mishandled COVID-19

 

World's worst pandemic leaders: 5 presidents and prime ministers who badly mishandled COVID-19

Belarus President Alexander Lukashenko visits a hospital for COVID-19 patients, unmasked, in Minsk on Nov. 27, 2020. Andrei Stasevich\TASS via Getty Images

By Sumit Ganguly, Indiana University; Dorothy Chin, University of California, Los Angeles; ...



more from Biotech/COVID-19

Zero Hedge

WTI Extends JCPOA Whipsaw Losses After Small Crude Build

Courtesy of ZeroHedge View original post here.

A volatile in the energy complex as Iran nuke deal headlines (first optimism, then pessimism) sparked a dump-n-pump in crude prices (after Brent tagged $70 earlier in the day).

“I said that significant progress have been achieved, in my view,” Ulyanov said in the tweet.

“That is true. But unresolved issues still remain and the negotiators need more time and efforts to finalise an agreement on restoration of JCPOA.”

A return to the 2015 nuclear deal could allow for the remova...



more from Tyler

Politics

As the Palestinian minority takes to the streets, Israel is having its own Black Lives Matter moment

 

As the Palestinian minority takes to the streets, Israel is having its own Black Lives Matter moment

Israeli-arabs gesture and wave Palestinian flags at Israelis in a Jewish community building, during renewed riots in the city of Lod on May 11. Oren Ziv/picture alliance via Getty Images

Courtesy of James L. Gelvin, University of California, Los Angeles

The images and reports coming from Israel, Jerusale...



more from Politics

Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Sunday, 22 November 2020, 05:47:49 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: Bitcoin ambitions ...



Date Found: Sunday, 22 November 2020, 05:48:34 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: PMI juiced back up ...



Date Found: Sunday, 22 November 2020, 05:49:42 PM
...

more from Chart School

ValueWalk

Managing Investments As A Charity Or Nonprofit

By Anna Peel. Originally published at ValueWalk.

Maintaining financial viability is a constant challenge for charities and nonprofit organizations.

Q4 2020 hedge fund letters, conferences and more

The past year has underscored that challenge. The pandemic has not just affected investment returns – it’s also had serious implications for charitable activities and the ability to fundraise. For some organizations, it’s even raised doubts about whether they can continue to operate.

Finding ways to generate long-term, sustainable returns for ...



more from ValueWalk

Kimble Charting Solutions

Will Historic Selloff In Treasury Bonds Turn Into Opportunity?

Courtesy of Chris Kimble

Long-dated treasury bonds have been crushed over the past year, sending ETFs like TLT (20+ Year US Treasury Bond ETF) spiraling over 20%.

Improving economy? Inflation concerns? Perhaps a combination of both… interest rates have risen sharply and thus bond prices have fallen in historic fashion.

Today’s chart looks at $TLT over the past 20 years. As you can see, the recent decline has truly been historic. $TLT’s price has swung from historically overbought highs to oversold lows.

At present, the long-dated bond ETF ($TLT) is trading 7.8% below its 200-...



more from Kimble C.S.

Mapping The Market

Suez Canal: Critical Waterway Comes to a Halt

 

Suez Canal: Critical Waterway Comes to a Halt

Courtesy of Marcus Lu, Visual Capitalist

The Suez Canal: A Critical Waterway Comes to a Halt

On March 23, 2021, a massive ship named Ever Given became lodged in the Suez Canal, completely blocking traffic in both directions. According to the Suez Canal Authority, the 1,312 foot long (400 m) container ship ran aground during a sandstorm that caused low visibility, impacting the ship’s navigation. The vessel is owned by Taiwanese shipping firm, Evergreen Marine.

With over 2...



more from M.T.M.

Promotions

Phil's Stock World's Weekly Webinar - March 10, 2021

Don't miss our latest weekly webinar! 

Join us at PSW for LIVE Webinars every Wednesday afternoon at 1:00 PM EST.

Phil's Stock World's Weekly Webinar – March 10, 2021

 

Major Topics:

00:00:01 - EIA Petroleum Status Report
00:04:42 - Crude Oil WTI
00:12:52 - COVID-19 Update
00:22:08 - Bonds and Borrowed Funds | S&P 500
00:45:28 - COVID-19 Vaccination
00:48:32 - Trading Techniques
00:50:34 - PBR
00:50:43 - LYG
00:50:48 - More Trading Techniques
00:52:59 - Chinese Hacks Microsoft's E...



more from Promotions

The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



more from Tech. Traders

Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



more from Lee

Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

http://www.insidercow.com/ more from Insider





About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. Contact Ilene to learn about our affiliate and content sharing programs.