• Central banks join forces to ease financial strains aka World Banks are going to come together
    33 replies, posted
[quote]Some of the world's biggest central banks have announced a programme of co-ordinated action designed to support the global financial system. The US Federal Reserve, the European Central Bank (ECB), the Bank of England and the central banks of Canada, Japan and Switzerland are all involved. They will make it cheaper for banks to buy US dollars, which they hope will ultimately help businesses and households access finance more easily. Stock markets rose sharply on the news. As well as cheaper US dollars, the central banks will also provide easier access for banks to other major currencies as and when they need it, beginning 5 December. Germany's Dax index was up 4% on the day, while France's Cac 40 and the UK's FTSE 100 were about 3% higher. Banks were particular beneficiaries. In the UK, Barclays surged more than 7% and Lloyds climbed more than 6%. In France, BNP, Societe Generale and Credit Agricole all gained about 6%, while in Germany Deutsche Bank rose by a similar amount. Continue reading the main story Euro v US Dollar Last Updated at 30 Nov 2011, 10:00 ET *Chart shows local time EUR:USD intraday chart €1 buys change % 1.3483 + +0.02 + +1.25 The euro also rose on the news, gaining almost a 1.5 cents against the dollar to $1.347. Against the pound, the euro was up slightly at 85.68 pence. 'Boost' As the eurozone debt crisis has deepened, banks have found it harder to access finance. They are concerned that some governments they have lent money to may be unable to pay it back. This means they are becoming increasingly reluctant to lend to one another - a key mechanism through which banks access finance. For example, on Tuesday night banks deposited 300bn euros ($405bn; £257bn) with the ECB, 100bn euros more than two weeks ago. Analysts said the central banks' move would help to relieve some of this strain within the global financial system. "This shows that central banks across the world continue to co-operate and that the ECB, and its partners, are very aware of the funding stress that European banks are under at the moment," said Christian Schulz at Berenberg Bank. Continue reading the main story Market Data Last Updated at 10:03 ET Dow Jones 11934.66 Up 379.03 3.28% Nasdaq 2591.19 Up 75.68 3.01% S&P 500 1234.19 Up 39.00 3.26% FTSE 100 5501.15 Up 164.15 3.08% Dax 6059.96 Up 260.05 4.48% BBC Global 30 5486.82 Up 103.71 1.93% Marketwatch ticker Data delayed by 15 mins "This decreases the cost of funding in US dollars or other currencies so it's small, but it's a boost to banks' profitability and gives them a better chance to shore up their capital ratios." Richard Hunter at Hargreaves Lansdown Stockbrokers said the joint action was "designed to prompt an increase in lending, whilst at the same time reducing some of the strains under which credit lines are currently operating". If banks take advantage of the cheaper funding, "a great deal of tension will be removed from the system, both in terms of liquidity and market sentiment", he added. Earlier on Wednesday, China's central bank unexpectedly said it would cut the limit on the amount of cash the country's banks have to hold in reserve in a move designed to boost lending. The bank had been increasing the rate to reduce lending in order to dampen demand and tackle rising prices.[/quote] Well Heh. [url]http://www.bbc.co.uk/news/business-15966753[/url] heres the source
Excellent news, but in the long run, when the dust settles down, i'm not sure if it will continue to be such a great idea
I like the globalization, but fear against corruption.
This is a good idea, undoubtedly run by awful awful people
[Insert Alex Jones NWO Conspiracy Theory Here]
Ready to screw everybody over, at a global scale.
They are gonna take over the world.
I just read "come together" and giggled to myself. ..sorry
Genius! World Banks coming together to form an alliance of extremely powerful and influential monetary figures so that they can save our economy, what could go wrong?
Wow, I'm so happy the banks are [I]finally[/I] being cut some slack! It's not like they received any help during the crisis or anything! I'm sure the wealth will trickle down eventually.
So are these central banks going to loan money (at interest) to the banks and governments worldwide? And who is going to pay back the interest i wonder... us. This can do nothing good in the long run, look what happened to america after the federal reserve offered to "help" prop up the banks..
There will probably be corruption..
No! This is socialism! We can't do this! By god we better withdraw lest we all turn in to Stalinistic Muslims! Fuck the world economy I demand more capitalism!!!!!
I do not believe for a second that any of this is altruistic.
Weren't we [B]just[/B] ranting about how much banks fuck over everyone just yesterday in this thread?: [URL="http://www.facepunch.com/threads/1143906"]http://www.facepunch.com/threads/1143906[/URL] I urge you to watch the video I posted on the first page, mostly because I don't want to spam the same video every time a bank thread pops up.
[quote]The US Federal Reserve, the European Central Bank (ECB), the Bank of England and the central banks of Canada, Japan and Switzerland are all involved.[/quote] Why was the US Federal Reserve invited? Everything they touch goes to shit.
[QUOTE=Kopimi;33507479]Genius! World Banks coming together to form an alliance of extremely powerful and influential monetary figures so that they can save our economy, what could go wrong?[/QUOTE] Well... You could miss work due to waking up too late... Or you could wake up without a house or any money at all... I doubt the situation we are in has any reasonable way to be fixed.
[QUOTE=Hidole555;33512663]Weren't we [B]just[/B] ranting about how much banks fuck over everyone just yesterday in this thread?: [URL="http://www.facepunch.com/threads/1143906"]http://www.facepunch.com/threads/1143906[/URL] I urge you to watch the video I posted on the first page, mostly because I don't want to spam the same video every time a bank thread pops up.[/QUOTE] You should spam it lots, because it's quite an asinine video and really makes you look like a silly NWO nut every time you post it. That's the video that also has the incredibly racist caricature of Jews right
new world order is beating down your door hahahaha
Who is President of the ECB? [URL="http://en.wikipedia.org/wiki/Mario_Draghi"]Mario Draghi [/URL]who [QUOTE] was involved in swaps for European governments, namely Greece, trying to disguise their countries' economic status.[/QUOTE] All they are going to do is fuck the world over! [editline]30th November 2011[/editline] [QUOTE=Zeke129;33512714]You should spam it lots, because it's quite an asinine video and really makes you look like a silly NWO nut every time you post it. That's the video that also has the incredibly racist caricature of Jews right[/QUOTE] Because banks have never done anything wrong! Are you already forgetting how the recession was caused by banks giving away subprime mortgage loans, bundling them onto the stock market, and then Goldman Sachs (a banking and securities firm) bet on their [B]failure[/B] and earned a profit from thousands of people losing their jobs. Also, Jews? What are you talking about? They and their faith are completely irrelevant to what we are talking about.
[QUOTE=Hidole555;33512663]Weren't we [B]just[/B] ranting about how much banks fuck over everyone just yesterday in this thread?: [URL="http://www.facepunch.com/threads/1143906"]http://www.facepunch.com/threads/1143906[/URL] I urge you to watch the video I posted on the first page, mostly because I don't want to spam the same video every time a bank thread pops up.[/QUOTE] Is that video really suggesting that we go back to commodity-backed currency? Because that's a really bad idea
[media]http://www.youtube.com/watch?v=ZPWH5TlbloU[/media]
[QUOTE=Jaehead;33513202]Is that video really suggesting that we go back to commodity-backed currency? Because that's a really bad idea[/QUOTE] Canadian, Norwegian, and Australian currencies are commodity based. What is wrong with a dollar actually representing something rather than the powers that be telling us what it is worth? [editline]30th November 2011[/editline] That's the video I was talking about up there.
[QUOTE=Hidole555;33513280]Canadian, Norwegian, and Australian currencies are commodity based. What is wrong with a dollar actually representing something rather than the powers that be telling us what it is worth? [editline]30th November 2011[/editline] That's the video I was talking about up there.[/QUOTE] uh because then there's no way to enforce monetary policy that way how are you supposed to combat inflation/recession [editline]wef[/editline] few problems I have with this video 1) Banks don't solely go to the fed to borrow as this video makes it out to be - they primarily take loans off each other, since the discount rate is a bit higher than what the banks charge each other 2) I don't like how it just mentioned the fractional banking system for like 2 seconds and then demonized it 3) I don't like how it simply spouts out "inflation! inflation!" like the banks purposefully, intentionally want to inflate currency to trash 4) Now, the problem that banks are loaning money off to just about anyone isn't even the problem - it's more like the banks are sitting on too much money, and [I]not[/I] giving out enough loans 5) The fed doesn't really even affect the money creation much anyways - since it's the banks that have the most influence in money creation through loans - the fed simply controls the monetary base, NOT through simply printing more and more money as the video suggests, but primarily through bond sales Also the prospect of JFK getting murdered by bankers is ridiculous to me
[QUOTE=Hidole555;33513280]Canadian, Norwegian, and Australian currencies are commodity based. What is wrong with a dollar actually representing something rather than the powers that be telling us what it is worth?[/QUOTE] Globalization and commodities markets means your money is going to be vulnerable to value flux regardless of whether or not you tie it to a basket of goods or not, and tying it to a basket of goods lessens the amount of control you have over it. It wouldn't change anything measurably for the better, but it could make things worse, so why bother?
[QUOTE=Jaehead;33513334]uh because then there's no way to enforce monetary policy that way how are you supposed to combat inflation/recession [editline]wef[/editline] few problems I have with this video 1) Banks don't solely go to the fed to borrow as this video makes it out to be - they primarily take loans off each other, since the discount rate is a bit higher than what the banks charge each other 2) I don't like how it just mentioned the fractional banking system for like 2 seconds and then demonized it 3) I don't like how it simply spouts out "inflation! inflation!" like the banks purposefully, intentionally want to inflate currency to trash 4) Now, the problem that banks are loaning money off to just about anyone isn't even the problem - it's more like the banks are sitting on too much money, and [I]not[/I] giving out enough loans 5) The fed doesn't really even affect the money creation much anyways - since it's the banks that have the most influence in money creation through loans - the fed simply controls the monetary base, NOT through simply printing more and more money as the video suggests, but primarily through bond sales Also the prospect of JFK getting murdered by bankers is ridiculous to me[/QUOTE] It absolutely reeks with conspiracy theories.
[QUOTE=Smug Bastard;33513271][media]http://www.youtube.com/watch?v=ZPWH5TlbloU[/media][/QUOTE] man this videos being posted everywhere.
snip
[QUOTE=rundevil;33516356]man this videos being posted everywhere.[/QUOTE] And it never stops being completely asinine.
[QUOTE=Jaehead;33513334]uh because then there's no way to enforce monetary policy that way how are you supposed to combat inflation/recession[/QUOTE] You are trying to base economic success and inflation off of what a dollar should represent. In both systems, inflation is caused by the excessive growth of the supply of money, determined by the decisions of the individuals in charge of the production of money. A recession is a matter of GDP, goods and services produced in a country. The way to tackle falling GDP is to enact legislation or other initiatives that will get the people working. This usually means ensuring that the unemployed shall become employed, as worker efficiency is up to the employee to provide, and the employer to enforce (within reason.) [QUOTE=Jaehead;33513334][editline]wef[/editline] few problems I have with this video 1) Banks don't solely go to the fed to borrow as this video makes it out to be - they primarily take loans off each other, since the discount rate is a bit higher than what the banks charge each other[/QUOTE] Mmhmm. [URL="http://www.pressdemocrat.com/article/20111130/BUSINESS/111301061"]http://www.pressdemocrat.com/article/20111130/BUSINESS/111301061[/URL] [QUOTE=Jaehead;33513334]2) I don't like how it just mentioned the fractional banking system for like 2 seconds and then demonized it[/QUOTE] The message it sends is straight-forward. It's the message that if everyone wanted their money back then all hell would break loose since the bank wouldn't be able to pay it back. [QUOTE=Jaehead;33513334]3) I don't like how it simply spouts out "inflation! inflation!" like the banks purposefully, intentionally want to inflate currency to trash[/QUOTE] Businesses decide what to charge for their products. If the value of money goes down, they will raise their prices to avoid a hit to profits. Banks are known for creating money out of thin air by considering money loaned out it's own asset in addition to the liability owed by the person who took out the loan. [QUOTE=Jaehead;33513334]4) Now, the problem that banks are loaning money off to just about anyone isn't even the problem - it's more like the banks are sitting on too much money, and [I]not[/I] giving out enough loans[/QUOTE] Every loan that a bank gives out creates money out of thin air for the bank and they must be paid back with interest. Giving out more loans would cause that pile they're sitting on to get higher and higher. [QUOTE=Jaehead;33513334]5) The fed doesn't really even affect the money creation much anyways - since it's the banks that have the most influence in money creation through loans - the fed simply controls the monetary base, NOT through simply printing more and more money as the video suggests, but primarily through bond sales[/QUOTE] Every dollar made by the Fed is loaned to the U.S. government with interest. If we paid all that money back to the Fed, what would be left to pay the interest with? The more money that the Fed pushes through, the more money it receives. [QUOTE=Jaehead;33513334]Also the prospect of JFK getting murdered by bankers is ridiculous to me[/QUOTE] I have to admit I do agree with you there. But in the video, it was only implied. One could easily say JFK didn't like bagels, but Lyndon B. Johnson did. Therefore, JFK was assassinated by those corrupt bagel-loving fuckers.
Sorry, you need to Log In to post a reply to this thread.