Not that anyone was silly enough to believe the default risk issued by Greece was worth the ink used to print the story, but its always a good feeling when a concern that I had with California, is brought to light via a so called credible MSM source. A while back I commented on the Greece/Euro story in an entry called Greece Who?, and later with the Eur(o) serious?
Ok so I'm 2 weeks late, but the new year is here none the less, and its the year of the Tiger. While in Vancouver for the Olympics, I got to enjoy the festivities of the Chinese new year in China town, it was awesome. China is back and stronger than before. Despite a China distaste for Obama's meeting with the Dalai Lama (Read here). Mix that with this piece of news from a while ago ... China retaliates over US arms sales to Taiwan. And... that gives you this!
That, my friends, is war (economic). The Chinese are not happy, they are smart with what they want to hold as far as reserves go, and they are not scared to show it.
Ben acts...
Written by Prophet
Saturday, 20 February 2010
Or does he? So at precisely at the time with the weakest volume, on Thursday after trading had come to an end, we were told that the Fed Raises Discount Rate; Fed Funds Rate Unchanged. Before you call me crazy for calling it a conspiracy, someone beat me to the entry of how ridiculous the timing of this move was.
Read here (shows how an institution got out with close to 2 million shares, just seconds before the announcement)
Trying to screw people over aside, one has to ask, how significant this raise is, allow me to explain. This is the rate that banks use to borrow money from the Fed, and few actually do. In other words its purely symbolic and largely ineffective. We have built a huge debt load as a country, raising the real rates by themselves at this point would be enough to sink the country.
Our pain as a country full of debt continues. Ben's action was a joke. Carry on.
