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Mar 19, 2009

BBC WORLD NEWS: "Fed pumps $1.2tn into US economy "

Fed pumps $1.2tn into US economy
US rates are expected to remain low for some time
The US Federal Reserve says it will buy almost $1.2 trillion (£843bn) worth of debt to help boost lending and promote economic recovery.

To read full story, click HERE

BBC MUNDO "La FED bombea dinero"

Redacción BBC Mundo
Con estas medidas la Fed pretende bajar las tasas de interés de los préstamos. La Reserva Federal de Estados Unidos anunció que comprará bonos del Tesoro de largo plazo por valor de hasta US$300.000 millones en los próximos seis meses y que ampliará las compras de deuda respaldada por hipotecas para sostener el mercado de crédito y promover la recuperación de la economía.

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Chaos and market maniputation continue.- By: Fernando Guzmán Cavero

Today, silver lost 20 cents closing at US$ 12.10, the same occurred with gold, which lost 26 dollars, closing at 890. Later on and off trading hours prices began to recover their loss, after the FED announced it was going to buy long term Treasury Bonds for the unthinkable amount of US$ 300 billion in. Who knew this in advance of the announcement and bought gold at approximately its lower price in the past couple of months, in the last week. Isn’t this symptomatic that after three days of continues drop of gold and silver prices , the Treasury announced this new measure, not surprising, but indeed annoyance of the lack of ethical behavior. After all bail-outs to to help the banking and financial sector, stop the economic recession to become a depresion; the economic chaos remains immutable.. but in the last three days the bulls were winning the battle. Is that true? Is not true that most of the newspapers and specialized magazines jumped into the boat, with lots of holes to be fixed so that water will not filter? Is not true that, headlines around the world said the recovery was on its way? I invite you to make a time-voyage to the past, 1971, when president Nixon announced , that the United States of America will no longer support and consequently will not exchange at the price of 35 dollars the ounce of gold as agreed upon in Breton Woods . That was the beginning of the collapse, because the United States of America was financing the budget deficit of the Vietnam War and its trade balance with its own paper money. And today’s injection of 300 US billon dollars into the economy and into the world trade international payments which are still tied- up in US dollars is an intervention which does not benefit the majority of this crisis individuals directly affected. The measure still is designed to benefit the status-quo.

Some maybe working some 30 years long term curves yields , and you know why? To produce again the purchase of paper money, “sell” his mathematical findings to the media, knowing that the only beneficiaries will not be those who put his savings based upon the long term yields but those who know long term yields serve to the purpose of short term market behavior. And be cautious of trust funds, fixed income securities, options and futures markets, and overwhelming projections..
A new Monetary Agreement with new rules to protect the human race is urgently need