LOGO: Truthdig: Drilling Beneath the Headlines. A Progressive Journal of News and Opinion. Editor, Robert Scheer. Publisher, Zuade Kaufman.
2010 Webby Award Winner for Best Political Blog
 
February 13, 2012
Log in / Register

 Choose a size
Text Size

Most Read

More About the Man Bankrolling Santorum

White Nationalists Share Spotlight With GOP at CPAC

A 'Queer History' of Rick Santorum and Proposition 8

Contraception and the Cost of Culture Wars

Critical, Reluctant and Desperate

Most Comments
Most Emailed

Reports

Ear to the Ground

A/V Booth

Arts & Culture
Political Divide

Digs
Financial Meltdown 101

Truthdig Bazaar more items

 
Ear to the Ground

Banks Gamble With Almost-Free Money

Email this item Email    Print this item Print   

Share
Posted on Nov 24, 2009
Wikimedia Commons / Henry Han

The Fed has been lending money at record-low rates, but instead of passing on the cash to businesses and consumers, big banks are rolling the dice in the financial markets. China and Japan have warned that these American high jinks could once again upend the global economy.

The Federal Reserve Board is aware of the problem, as minutes from its latest meeting show. But, at this time, the Fed doesn’t consider the risk dangerous enough to take action.  —PZS

Bloomberg via Eschaton:

Financial officials in Japan and China, Asia’s two largest economies, said last week that the Fed’s interest-rate policy risks spurring speculative capital that may inflate asset prices and derail the global economic recovery.

“Participants noted that the recent fall in the foreign exchange value of the dollar had been orderly and appeared to reflect an unwinding of safe-haven demand in light of the recovery in financial market conditions this year,” the minutes said. “Any tendency for dollar depreciation to intensify or to put significant upward pressure on inflation would bear close watching.”

Read more

More Below the Ad

Advertisement


Comments

Are you a Truthdig member yet? Login now, or register with Truthdig.

By WriterOnTheStorm, November 25, 2009 at 4:07 pm Link to this comment

The banksters are borrowing at .5 to 1.5 percent, and putting the money in
foreign banks, like those in Brazil, where it can earn up to 7 percent interest. Bad
for us, but good for Brazil. It’s not cheap to clear-cut rain forest for cattle
ranches.

The fact that this article gets so little comment surprises. Does it mean that we are
suffering from scandal fatigue in the economic sector?

Report this

By ChaoticGood, November 24, 2009 at 11:18 pm Link to this comment

A fiat currency, propped up by military might and inertia, dubbed the base currency for the world because the only other currency that is big enough is the Euro and that does not have the safety of military might behind it.
In this Kabuki theatre, the shadow money is real. Don’t wake me, I’m dreaming that I am rich…

Report this

By freedom loving american, November 24, 2009 at 9:21 pm Link to this comment

What the cornerstone of capitalism being dishonest, you must be jesting?
These are the same organization that were hoodwinked by all the crafty bourgeois Americans a few years back regarding home loans these people did not qualify for and could not afford to pay back, so these good hearted chaps kindly took their homes and then gently forced them into bankruptcy (I wonder why there is a bank in bankruptcy). Then the American taxpayers gladly baled these benevolent good-doers out to the tune of 6 trillion dollars and counting.
Next the same poor banks that somehow got caught up in the credit-default swaps scam which is so complicated no one understands but because they are such a loving caring organization they went ahead and gambled I mean invested 100’s of trillions just to help out the poor wall street billionaires (I believe you needed investments of at least 10 million to purchase these instruments).

Now you are claiming these kind jovial souls are making risky investments, surprise surprise surprise!

Report this

Add Your Comment

Posts by unregistered readers are moderated. Posts by members
are published immediately. Why wait? Register today!






                        Number of characters remaining: 4000

Notify you when others comment on this article?

Are you a human? Retype the word you see here.

     

Please read and abide by our comment policy.
By submitting this comment, you agree to this site's terms and conditions.

 
 
 
Join the Liberal Blog Advertising Network
 
 
 
 
 
 
 

A Progressive Journal of News and Opinion. Editor, Robert Scheer. Publisher, Zuade Kaufman.
Copyright © 2012 Truthdig, L.L.C. All rights reserved.