Comments on: Devaluation and a Chinese Warning Shot http://whiskeyandgunpowder.com/devaluation-and-a-chinese-warning-shot/ Whiskey and Gunpowder features articles on gold, oil, currencies, emerging markets, energy, and more. Tue, 22 May 2012 22:11:13 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: john conner http://whiskeyandgunpowder.com/devaluation-and-a-chinese-warning-shot/comment-page-1/#comment-1509 john conner Mon, 30 Mar 2009 23:53:04 +0000 http://whiskeyandgunpowder.com/?p=3885#comment-1509 The mechanism of quantative easing is fairly simple. The Fed offers to buy treasury bills from banks ond other institutions on the open market. The procees tends to lower interest rates and puts more cash in the hands of the commercial banks. The Banks thus have more money to loan and The institutions can buy other securities on the open market. Both stimulate economic activity which is what the Fed is trying to do. The danger is that the process, if carried to extreme, increases the money supply and ultimatelycould deteriorate the purchasing power of US currency. The initial reaction in Europe is to increase the value of the Euro relative to th US dollar. The relatively higher interest rates in Europe attract investment and thus flow of funds to the higher interest rate environment. China, as a huge holder of US Treasuries, initially benefits because the market value of their holdings has increased. The other face of this coin is the lower interest rate they receive on future investments. It is not a desperate last panic action by the Fed. and at least not yet, a precursor of the Wiemar Republic The mechanism of quantative easing is fairly simple. The Fed offers to buy treasury bills from banks ond other institutions on the open market. The procees tends to lower interest rates and puts more cash in the hands of the commercial banks. The Banks thus have more money to loan and The institutions can buy other securities on the open market. Both stimulate economic activity which is what the Fed is trying to do. The danger is that the process, if carried to extreme, increases the money supply and ultimatelycould deteriorate the purchasing power of US currency. The initial reaction in Europe is to increase the value of the Euro relative to th US dollar. The relatively higher interest rates in Europe attract investment and thus flow of funds to the higher interest rate environment. China, as a huge holder of US Treasuries, initially benefits because the market value of their holdings has increased. The other face of this coin is the lower interest rate they receive on future investments. It is not a desperate last panic action by the Fed. and at least not yet, a precursor of the Wiemar Republic

]]> By: Ken Stremsky http://whiskeyandgunpowder.com/devaluation-and-a-chinese-warning-shot/comment-page-1/#comment-1507 Ken Stremsky Mon, 30 Mar 2009 20:29:22 +0000 http://whiskeyandgunpowder.com/?p=3885#comment-1507 Congress should eliminate the Federal Reserve or veto many of its decisions. Congress is supposed to be in charge of our currency according to Article 1, Section 8 of the United States Constitution. Members of Congress who do not support eliminating the Federal Reserve and/or vetoing many of its decisions should be voted out of office in 2010, 2012, and 2014. Congress should eliminate the Federal Reserve or veto many of its decisions.

Congress is supposed to be in charge of our currency according to Article 1, Section 8 of the United States Constitution.

Members of Congress who do not support eliminating the Federal Reserve and/or vetoing many of its decisions should be voted out of office in 2010, 2012, and 2014.

]]> By: Interest Rates » Devaluation and a Chinese Warning Shot http://whiskeyandgunpowder.com/devaluation-and-a-chinese-warning-shot/comment-page-1/#comment-1506 Interest Rates » Devaluation and a Chinese Warning Shot Mon, 30 Mar 2009 19:59:51 +0000 http://whiskeyandgunpowder.com/?p=3885#comment-1506 [...] Read the rest of this great post here [...] [...] Read the rest of this great post here [...]

]]> By: Gary Gibson http://whiskeyandgunpowder.com/devaluation-and-a-chinese-warning-shot/comment-page-1/#comment-1505 Gary Gibson Mon, 30 Mar 2009 19:19:56 +0000 http://whiskeyandgunpowder.com/?p=3885#comment-1505 Bill looks at the world through the same shot glass we do. He’s our kind of guy. If you want some of his extremely profitable currency plays, you can read more <a href="https://www.web-purchases.com/MOTShadowMarketB/EMOTK327/landing.html?o=4411&s=5240&u=21523357&l=6376&r=Milo" rel="nofollow">here</a>. Bill’s awfully prescient about these things. Speaking of prescience, a Shooter writes in response to a recent Parting Shot, but it’s like he knew which article I had planned for today… "In regards to the first writer from South Africa, under, Parting Shot. "One’s level of education has little to do with one’s ability to know the truth about one’s own government, particularly when the government represents the largest corporation in the world, the good old USA. After years of study I am amazed by the naivety of so-called smart people. "In order for one to be informed, we the people would need to take back the press. I know many well educated people who blindly follow their hearts or their party lines, convinced that they know the truth because of what they read in the Wall Street Journal or heard in their local news or the opinions of their favorite talk show host. "Most have learned nothing from their years of studying history. They understand what Hitler did, the political corruption of Rome, the cruelty of Stalin. They understand “mans inhumanity towards man” if it is represented through other civilizations but they have a difficult time seeing the blinding truth right before their own eyes. They can not believe that the people who run their own government are of the same cloth. Of course this has been true throughout history. It is really very simple, just FOLLOW THE MONEY ! "They are manipulated by the powers at be and diverted through our so called free press. We are sure that Mad off should be hung but they haven't a clue about the dirty little secret, the greatest financial crime ever perpetrated upon a civilization. Of course I am speaking about the Federal Reserve banking system. The vast majority of Americans, educated or uneducated, do not understand that the Federal Reserve banking system is a group of private banks…private corporations. The Federal Reserve is no more Federal than Federal Express and congress passed a bill in 1913, which gave our currency and therefore our country to this group of banksters. Then they passed legislation, which created a collection agency for these private banisters. It’s called the IRS. Now how many well-educated people are aware of this dastardly deed? Maybe one in a 100! "No, I am afraid education through our educational system is not the answer. Even now that our country has literally been used up, the people are still a sleep. We Americans are like sheep and we have been led to slaughter. "I also think it is a grave injustice when we talk about what we are doing to our children and grandchildren. This is just another diversion tactic. Of course, we are all concerned about the future for our children and grandchildren, and well we should be, but these problems are coming home to roost today. Our country is bankrupt! And a great deal of blame can be placed directly on the most powerful and corrupt white-collar criminals in world history, the Federal Reserve banksters! If Martha Stewart were involved in such a scheme, they would have electrocuted her! "This is not a slap against higher education but to believe that ones vote should bear more weight because he or she is educated is absurd! The uneducated as well as the educated have all been duped!" Thank you. Till tomorrow, Gary Gibson Managing Editor, Whiskey & Gunpowder Bill looks at the world through the same shot glass we do. He’s our kind of guy. If you want some of his extremely profitable currency plays, you can read more here. Bill’s awfully prescient about these things.

Speaking of prescience, a Shooter writes in response to a recent Parting Shot, but it’s like he knew which article I had planned for today…

“In regards to the first writer from South Africa, under, Parting Shot.

“One’s level of education has little to do with one’s ability to know the truth about one’s own government, particularly when the government represents the largest corporation in the world, the good old USA. After years of study I am amazed by the naivety of so-called smart people.

“In order for one to be informed, we the people would need to take back the press. I know many well educated people who blindly follow their hearts or their party lines, convinced that they know the truth because of what they read in the Wall Street Journal or heard in their local news or the opinions of their favorite talk show host.

“Most have learned nothing from their years of studying history. They understand what Hitler did, the political corruption of Rome, the cruelty of Stalin. They understand “mans inhumanity towards man” if it is represented through other civilizations but they have a difficult time seeing the blinding truth right before their own eyes. They can not believe that the people who run their own government are of the same cloth. Of course this has been true throughout history. It is really very simple, just FOLLOW THE MONEY !

“They are manipulated by the powers at be and diverted through our so called free press. We are sure that Mad off should be hung but they haven’t a clue about the dirty little secret, the greatest financial crime ever perpetrated upon a civilization. Of course I am speaking about the Federal Reserve banking system. The vast majority of Americans, educated or uneducated, do not understand that the Federal Reserve banking system is a group of private banks…private corporations. The Federal Reserve is no more Federal than Federal Express and congress passed a bill in 1913, which gave our currency and therefore our country to this group of banksters. Then they passed legislation, which created a collection agency for these private banisters. It’s called the IRS. Now how many well-educated people are aware of this dastardly deed? Maybe one in a 100!

“No, I am afraid education through our educational system is not the answer. Even now that our country has literally been used up, the people are still a sleep. We Americans are like sheep and we have been led to slaughter.

“I also think it is a grave injustice when we talk about what we are doing to our children and grandchildren. This is just another diversion tactic. Of course, we are all concerned about the future for our children and grandchildren, and well we should be, but these problems are coming home to roost today. Our country is bankrupt! And a great deal of blame can be placed directly on the most powerful and corrupt white-collar criminals in world history, the Federal Reserve banksters! If Martha Stewart were involved in such a scheme, they would have electrocuted her!

“This is not a slap against higher education but to believe that ones vote should bear more weight because he or she is educated is absurd! The uneducated as well as the educated have all been duped!”

Thank you.

Till tomorrow,
Gary Gibson
Managing Editor, Whiskey & Gunpowder

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