China to Diversify Foreign Currency Reserves, Dump Dollars, and Invest its $1 Trillion Elsewhere

China will soon begin to diversify its foreign currency reserves and dump dollars by the billions. As China invests its $1 trillion from trade surpluses elsewhere, other central and foreign banks will dump dollars. We holding dollars will lose much. 

China’s spectacular trade surplus and mighty strength as the lender of last resort to many nations including America, which owes $10 trillion in debt, are raising eyebrows as many investors are dumping dollars and buying China’s Yuan, a highly undervalued currency.

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[b]China’s plan to diversify foreign currency reserves is an unprecedented move away from the U.S. dollar.[/b]

The Chinese government announced the formation of a new agency to oversee investment of China’s $1 trillion in foreign currency reserves, representing a potent new force in international finance.

Finance Minister Jin Renqing offered no specifics about how much of the currency reserves would be made available to the investment agency. But analysts say the agency is expected to control one of the world’s biggest investment funds, and one that could singlehandedly alter the value of national currencies on a global scale. As China seeks more attractive investment earnings with its vast financial holdings and moves away from the devaluing dollar, expect the U.S. economy to take a nosedive. When it does (and already beforehand for savvy investors with sufficient foresight), watch for a run on the U.S. banks and widespread dumping of the dollar in favor of the Euro, Yuan, gold, and other safe havens.

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The Chinese government says one model for the agency was Temasek Holdings, the Singapore government’s successful investment agency, which manages an $84 billion global portfolio of investments.

China already has the world’s largest foreign exchange holdings, which is growing rapidly because of the country’s huge trade surpluses. According to the International Herald Tribune most of the reserves China now accumulates are conservatively invested in U.S. Treasury bonds and other government securities, which earn little return for China yet help to keep interest rates in the United States and other countries low.

The investment agency allows China to quickly diversify its foreign exchange holdings away from the dollar. Given the fact China and many Asian tigers loaning billions of dollars to the U.S. are disenchanted with America’s imperialistic foreign policy in Iraq, when disgust reaches its peak the dumping of dollars and non-renewing of loans to the U.S. could bankrupt the American economy.

China is ready to aggressively invest its huge trade surpluses as it seeks higher returns away from the dismal dollar. The impact of China’s emergence as a major global investor will be huge and a devastating blow to the U.S. economy as they progressively shift away from dollars in favor of more appreciating assets and higher yielding investments.

Rumor has it that China will soon begin dumping dollars by the billions. Before that happens, the American people would be wise to put their investments and protect their life savings in gold and other currencies such as the Euro and Chinese Yuan (which is greatly undervalued).

The biggest priority in these turbulent and troubling economic times is security, which the dollar no longer provides.

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The Chinese government announced the formation of a new agency to oversee investment of China’s $1 trillion in foreign currency reserves, representing a potent new force in international finance. China’s spectacular trade surplus and mighty strength as the lender of last resort to many nations including America, which owes $10 trillion in debt, are raising eyebrows as many investors are dumping dollars and buying China’s Yuan, a highly undervalued currency.

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Finance Minister Jin Renqing offered no specifics about how much of the currency reserves would be made available to the investment agency. But analysts say the agency is expected to control one of the world’s biggest investment funds, and one that could singlehandedly alter the value of national currencies on a global scale. As China seeks more attractive investment earnings with its vast financial holdings and moves away from the devaluing dollar, expect the U.S. economy to take a nosedive. When it does (and already beforehand for savvy investors with sufficient foresight), watch for a run on the U.S. banks and widespread dumping of the dollar in favor of the Euro, Yuan, gold, and other safe havens.

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The Chinese government says one model for the agency was Temasek Holdings, the Singapore government’s successful investment agency, which manages an $84 billion global portfolio of investments.

China already has the world’s largest foreign exchange holdings, which is growing rapidly because of the country’s huge trade surpluses. According to the International Herald Tribune most of the reserves China now accumulates are conservatively invested in U.S. Treasury bonds and other government securities, which earn little return for China yet help to keep interest rates in the United States and other countries low.

The investment agency allows China to quickly diversify its foreign exchange holdings away from the dollar. Given the fact China and many Asian tigers loaning billions of dollars to the U.S. are disenchanted with America’s imperialistic foreign policy in Iraq, when disgust reaches its peak the dumping of dollars and non-renewing of loans to the U.S. could bankrupt the American economy.

China is ready to aggressively invest its huge trade surpluses as it seeks higher returns away from the dismal dollar. The impact of China’s emergence as a major global investor will be huge and a devastating blow to the U.S. economy as they progressively shift away from dollars in favor of more appreciating assets and higher yielding investments.

Rumor has it that China will soon begin dumping dollars by the billions. Before that happens, the American people would be wise to put their investments and protect their life savings in gold and other currencies such as the Euro and Chinese Yuan (which is greatly undervalued).

The biggest priority in these turbulent and troubling economic times is security, which the dollar no longer provides.

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Record Foreclosures, Financial Opportunities, and Investment Strategies

[b]Record Foreclosures Across America![/b]

Beyond the immediate profits in investing in China’s Yuan (the world’s most undervalued currency for a nation who is America’s lender of last resort), the mighty Euro now used in 37% of all foreign currency exchange, and gold the monetary safe haven for centuries…

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Make money buying foreclosures

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The Mortgage Bankers Association is scratching its head wandering what to do with itself after the National Delinquency Survey released the ugly details of record breaking foreclosures sweeping across the United States. California and Florida are the leaders of the losers with the government of California itself currently seeking emergency bailout funds from the federal government as it approaches bankruptcy.

Widespread mismanagement of federal, state, and local government revenues is coming back to bite us!

Nevertheless as the delinquency rates continue to rise, there are some financially profitable investments out there. Let us not forget the old adage to “buy low and sell high”.

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Foreclosed properties are causing savvy investors to salivate across the nation. Even novices with no investment property experience are awaking to the wonderful deals and joys of leveraging other people’s money.

Many secrets to foreclosures can be easily learned, after which you too can be making tens of thousands of dollars. Working smarter rather than harder is what my dad taught me.

Foreclosure Profit Finder – a unique step by step system to profit buying foreclosures; find the ideal and most profitable homes; how to talk to sellers using our scripts; write up the contractual paperwork to tie up and secure the property; sell / assign or flip your deal to a hungry investor for cash; create a stream of income; and flip houses using our savvy investing system.

Discover how ordinary guys become wealthy from foreclosures without using their money or credit to make extraordinary profits!

Learn the foreclosure secrets only seasoned veteran real estate brokers know and refuse to share with even their friends.

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Paul F. Davis is a world-changer who has touched over 50 countries, more than 50 islands, and 6 continents empowering people throughout the earth to live their dreams!

Paul is the author of 14 books and premier life coach building dreams, breaking limitations, and transforming individuals and organizations. Paul is a change master that knows how to play with pain, while elegantly and humorously navigating through transition to ride the waves of change.

A savvy real estate investor, entrepreneur, and currency speculator Paul knows how to create opportunities and transcend turbulent economic times.

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[b]Record Foreclosures Across America![/b]

Make money buying foreclosures – https://paydotcom.com/r/28053/paulfdavis/20767128/

The Mortgage Bankers Association is scratching its head wandering what to do with itself after the National Delinquency Survey released the ugly details of record breaking foreclosures sweeping across the United States. California and Florida are the leaders of the losers with the government of California itself currently seeking emergency bailout funds from the federal government as it approaches bankruptcy.

Widespread mismanagement of federal, state, and local government revenues is coming back to bite us!

Nevertheless as the delinquency rates continue to rise, there are some financially profitable investments out there. Let us not forget the old adage to “buy low and sell high”.

https://paydotcom.com/r/28053/paulfdavis/20767128/

Foreclosed properties are causing savvy investors to salivate across the nation. Even novices with no investment property experience are awaking to the wonderful deals and joys of leveraging other people’s money.

Many secrets to foreclosures can be easily learned, after which you too can be making tens of thousands of dollars. Working smarter rather than harder is what my dad taught me.

Foreclosure Profit Finder – a unique step by step system to profit buying foreclosures; find the ideal and most profitable homes; how to talk to sellers using our scripts; write up the contractual paperwork to tie up and secure the property; sell / assign or flip your deal to a hungry investor for cash; create a stream of income; and flip houses using our savvy investing system.

Discover how ordinary guys become wealthy from foreclosures without using their money or credit to make extraordinary profits!

Learn the foreclosure secrets only seasoned veteran real estate brokers know and refuse to share with even their friends.

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FBI Mortgage Fraud Task Force – Implications for Real Estate Property Appraisers in Florida

The FBI provided insight into the breadth and depth of mortgage fraud crimes perpetrated against the United States and its citizens, Florida being first and foremost on the list. Current mortgage fraud projections, issues, and hot spots in the troubled U.S. economy have enormous implications to the banking industry and real estate property appraisers in particular.

[b]Mid-State Appraisals founder Paul Davis is a trusted and reputable property appraiser[/b] frequently called upon by Central Florida’s banks, homeowners, and real estate investors to assess property values. A builder for over 20 years and also a real estate broker, Paul Davis brings a wealth of knowledge to the table as an appraiser.

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A combined effort between banks and real estate property appraisers is needed to adequately identify, prevent, report, and thwart mortgage fraud activity. The FBI’s Financial Crimes Criminal Investigative Division (CID) and Financial Crimes Intelligence Unit are aggressively and cooperatively reporting the latest developments and pertinent data to empower the nationwide mortgage fraud task force.

As mortgage fraud crimes escalate, the burden on federal law enforcement increases. With the anticipated upsurge in mortgage fraud cases, the FBI employed additional strategies to proactively address the crime problem. The FBI works with the Department of Justice (DOJ)-Mortgage Fraud Working Group on a number of mortgage fraud related issues, including the creation and finalization of standard loss valuation criteria associated with mortgage fraud violations, and assisting the banking industry with the construction of a centralized repository of mortgage-related documentation.

The valuation criteria and mortgage related documentation is where real estate property appraisers and their appraisals provided lenders are going to increasingly be monitored and regulated in the near future.

Currently the FBI has mortgage fraud working groups or task forces in 32 field divisions across the country. The FBI divisions stationed in Florida are based out of Miami and Tampa. Moreoever the FBI continues to encourage the use of undercover operations as an effective technique to address mortgage fraud.

The recent stock market crashes across global markets have strongly affirmed, mortgage fraud if not dealt with has the potential to cripple the American economy and all foreign economies closely connected to it. Suspicious Activity Reports (SARs) from financial institutions indicate an increase in mortgage fraud. SARs increased 31-percent to 46,717 during Fiscal Year (FY) 2007. The total dollar loss attributed to mortgage fraud is unknown. However, 7 percent of SARs filed during FY 2007 indicated a specific dollar loss, which totaled more than $813 million.

Subprime mortgage issues remain a key factor in influencing mortgage fraud directly and indirectly. The subprime share of outstanding loans has more than a doubled since 2003 putting a greater share of loans at higher risk of failure. Additionally, during 2007 there were more than 2.2 million foreclosure filings reported on approximately 1.29 million properties nationally, up 75 percent from 2006. The declining housing market affects many in the mortgage industry who are paid by commission. The FBI says during declining markets, mortgage fraud perpetrators may take advantage of industry personnel attempting to generate loans to maintain current standards of living.

Many of the key industry personnel often involved are real estate property appraisers valuing the homes and properties prior to bankers signing off on loans.

Data from law enforcement and industry sources identify the states most affected by mortgage fraud during 2007 and indicated that the top 10 mortgage fraud states for 2007 were Florida, Georgia, Michigan, California, Illinois, Ohio, Texas, New York, Colorado, and Minnesota.

The downward trend in the housing market provides an ideal climate for mortgage fraud perpetrators to employ a myriad of schemes suitable to a down market. Several of these schemes have emerged with the potential to spread as the recent rise in foreclosures, depressed housing prices, and decreased demand place pressure on lenders, builders, and home sellers. Emerging and re-emerging schemes for 2007 included builder-bailouts, seller assistance, short sales, foreclosure rescue, and identity thefts exploiting home equity lines of credit.

Fraudulent practices have become dreadfully systemic within the mortgage industry, as unrestrained mortgage fraud has bankrupted some of the best and longtime solid financial institutions. If the FBI fails to quickly regulate, enforce, and imprison fraudulent professionals within the banking and real estate industry, expect to see the dollar tank along with the U.S. economy. After which consumers will only be able to buy gold, Euros, or China’s Yuan to protect their life savings and investments.

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Real estate property appraisers therefore may be the last line of defense to maintain accountability and accuracy before straw buyers succeed in excessively borrowing beyond the market value of a property’s worth and thereby jeopardize the security of loans throughout the banking industry.

Real estate property appraisers must like never before show due diligence when representing their fiduciaries the banks and report to legal authorities any manipulative and coercive attempts by lenders and borrowers to adjust property valuations they sign off on in their appraisal reports.

[b]Mid-State Appraisals founder Paul Davis is a trusted and reputable property appraiser frequently called upon by Central Florida’s banks, homeowners, and real estate investors to assess property values. A builder for over 20 years and also a real estate broker, Paul Davis brings a wealth of knowledge to the table as an appraiser.[/b]

http://www.midstateappraisals.org

midstateappraisals@earthlink.net

Secure Investments Considering World’s Best Banking Systems as measured by World Economic Forum

The World Economic Forum has identified the world’s soundest banking systems across the globe. Vital information for any consumer and investor to know in these devastatingly uncertain and turbulent times.

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Canada has the world’s soundest banking system. Good news for me considering my wife is Canadian. Should this Yankee need to flee for a financial safe haven (and free health care), Canada will be a great option.

Closely behind followed Sweden, Luxembourg and Australia. As financial crisis and bank failures shake world markets, the survey by the World Economic Forum provided some enlightening and startling information about arrogant and seemingly (now questionably) economic super powers such as Britain and America.

Britain, which once ranked in the top five, has slipped to 44th place behind El Salvador and Peru, after a 50 billion pound ($86.5 billion) pledge this week by the government to bolster bank balance sheets.

The United States, where some of Wall Street’s biggest financial names have collapsed and been crippled in recent weeks, rated only 40, just behind Germany at 39, and smaller states such as Barbados, Estonia and even Namibia, in southern Africa.

The World Economic Forum’s Global Competitiveness Report is worth earnestly heeding and considering before investing in nations whose banking systems are problematic and given to systemic failures.

As for me, I’m extremely bearish on the dollar. Despite short-term gains based on momentary hype, patriotism, and the global credit crunch …look for the central and foreign banks across the globe to dump dollars and buy gold, Euros, Chinese yuan, and Japanese yen. The day of dollar dominance is over!

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My advice to investors, follow the lead of the Central and foreign banks. Beware of listening to the U.S. media’s propaganda machine. The world is disenchanted with America thanks to the war in Iraq and U.S. military imperialism to prop up the dollar as OPEC’s currency of choice. America’s longtime arrogance is coming to an end with the death of the dollar.

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When the dollar dies, look for the global economy to say good riddance.

The top 20 ranked banking systems are:

1. Canada

2. Sweden

3. Luxembourg

4. Australia

5. Denmark

6. Netherlands

7. Belgium

8. New Zealand

9. Ireland

10. Malta 11. Hong Kong

12. Finland

13. Singapore

14. Norway

15. South Africa

16. Switzerland

17. Namibia

18. Chile

19. France

20. Spain

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Protect Your Savings, Learn from Foreign Central Banks and the Super Rich

In uncertain economic times as these when U.S. banks, government institutions, and the FDIC itself is nearing bankruptcy… don’t be unwise and bet on big brother to take care of you. Let’s not forget the United States of America is the world’s largest debtor nation with $10 trillion and counting amassing billions in interest daily.

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Given America’s troubling foreign policy by which it irritates and alienates many of the nations holding its debt and Treasury bills, it won’t be long before the nations of the world and OPEC say no more and opt for other currencies over the dollar.

Be discerning and diligent to guard your hard earned assets and protect your life savings. Learn from the foreign central banks governing monetary policy of nations and the super rich, who diversify their currency reserves and are increasingly adding their holdings of gold, Euros, and Chinese yuan while dumping dollars.

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Foreign Currency Exchange Swap Lines – What Central Banks are Whispering?

In response to continued strains in short-term funding markets, Central Banks across the world have coordinated actions to significantly expand the capacity to provide U.S. dollar liquidity. Central banks publicly commit to continue to work together closely and say they are prepared to take appropriate steps as needed to address funding pressures.

This should serve to drive up the value of the dollar on the short-term (for a month or so) until fear and panic eventually take hold and Central Banks one by one begin dumping dollars.

That being said, there are some short-term possible gains for those who invest in the dollar and substantial long-term gains for those who sell dollars while they are high and opt to invest and protect their savings in strong currencies such as the Euro and Chinese yuan. Of course a safe haven for consumers and investors with less intestinal fortitude would be gold.

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The U.S. Federal Reserve announced several initiatives to support financial stability and to maintain a stable flow of credit to the economy during this period of significant strain in global markets.

The Fed commits to continue to adapt these liquidity facilities as necessary and will keep them in place as long as circumstances require.

Actions by the Federal Reserve include:  (1) an increase in the size of the 84-day maturity Term Auction Facility (TAF) auctions to $75 billion per auction from $25 billion beginning with the October 6 auction, (2) two forward TAF auctions totaling $150 billion that will be conducted in November to provide term funding over year-end, and (3) an increase in swap authorization limits with the Bank of Canada, Bank of England, Bank of Japan, Danmarks Nationalbank (National Bank of Denmark), European Central Bank (ECB), Norges Bank (Bank of Norway), Reserve Bank of Australia, Sveriges Riksbank (Bank of Sweden), and Swiss National Bank to a total of $620 billion, from $290 billion previously.

These steps are being undertaken in an attempt to mitigate pressures evident in the term funding markets both in the United States and abroad.  The Federal Reserve’s actions are desiring to reassure financial market participants that financing will be available against good collateral, which they hope will lessen concerns about funding and rollover risk.

84-Day Maturity TAF Auctions
The increase to $75 billion per auction will triple the supply of 84-day maturity credit to $225 billion from $75 billion.  TAF credit at the 28-day maturity will remain at $75 billion.  The total amount of TAF credit available in the 28-day and 84-day auction cycles will double to $300 billion from $150 billion.

Foreign Exchange Swap Lines
The Federal Open Market Committee (FOMC) has authorized a $330 billion expansion of its temporary reciprocal currency arrangements (swap lines).  This increased capacity will be available to provide funding for U.S. dollar liquidity operations by the other central banks.  The FOMC has authorized increases in all of the temporary swap facilities with other central banks.  These larger facilities will now support the provision of U.S. dollar liquidity in amounts of up to $30 billion by the Bank of Canada, $80 billion by the Bank of England, $120 billion by the Bank of Japan, $15 billion by Danmarks Nationalbank, $240 billion by the ECB, $15 billion by the Norges Bank, $30 billion by the Reserve Bank of Australia, $30 billion by the Sveriges Riksbank, and $60 billion by the Swiss National Bank.  As a result of these actions, the total size of outstanding swap lines is $620 billion.

All of the temporary reciprocal swap facilities have been authorized through April 30, 2009.

Dollar funding rates abroad have been elevated relative to dollar funding rates available in the United States, reflecting a structural dollar funding shortfall outside of the United States.  The increase in the amount of foreign exchange swap authorization limits will enable many central banks to increase the amount of dollar funding that they can provide in their home markets.  This should help to improve the distribution of dollar liquidity around the globe. Whether the value of the dollar holds on the long term against inflation and deflation however is highly unlikely.

That being said, there are some short-term possible gains for those who invest in the dollar and substantial long-term gains for those who sell dollars while they are high and opt to invest and protect their savings in strong currencies such as the Euro and Chinese yuan. A more cautious and safe route for consumers and investors is also found in the safe haven of gold.

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Emergency Economic Stabilization Act of 2008 (EESA) Dangers

The U.S. government is desperately struggling to stabilize the economy and keep Central and Foreign Banks confident in order to access hundreds of billions of dollars lest global currency reserve diversification occur. The Emergency Economic Stabilization Act of 2008 (EESA) dangers are many.

Global currency reserves typically have been in U.S. dollars to lower transaction costs, but with the Euro now being used in 37% of all international transactions, Central Banks in Asia, Russia, and the Middle East are diversifying their portfolios and moving away from the unstable and vulnerable U.S. dollar seeking more attractive and secure investments to secure their national economies.

Americans should therefore buy gold, Euros, or Chinese yuan to protect their hard earned savings and investments.

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The Emergency Economic Stabilization Act of 2008 (EESA) provides up to $700 billion to the Secretary of the Treasury to buy mortgages and other “toxic” assets that are clogging the balance sheets of financial institutions and making it difficult for Wall Street, working families, small businesses, and other companies to access credit.

Accessing credit is imperative to the U.S. economy which owes $10 trillion in debt to overseas Central and Foreign Banks. In order for the near bankrupt U.S. economy which is steadily sinking, foreign oil addicted, and heavily dependent upon global militarization to persuade OPEC to continue to sell oil worldwide in dollars, ongoing hundreds of billions of dollars from afar is desperately needed.

The EESA is a program committed to printing and borrowing more dollars (ironically from foreign nations abroad) to insure troubled assets related to unprecedented amounts of homeowner and real estate foreclosures. These unwanted defaulted loans, often referred to by the U.S. government as “assets” are nothing of the sort.

Hence the Troubled Asset Relief Program (TARP) is a governmental plan to remove illiquid assets (a.k.a. defaulted real estate loans) that are unwanted and weighing down our financial institutions and threatening our economy. These toxic assets will be purchased and most likely not repaid to we the American taxpayers bearing the burden.

Before the U.S. greenback has a heart attack and the dollar dies, Americans should buy gold, Euros, or Chinese yuan to protect their hard earned savings and investments.

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G7 Finance Ministers and Central Banks Governors Coordinate, Collaborate, and Consolidate

G7 Finance Ministers and Central Banks Governors set to coordinate, collaborate, and consolidate to survive global financial turmoil. U.S. Treasury and Central Bank prepare for global integration and inflation of the dollar as it prints more currency.

 

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As U.S. credit markets deathly tighten to an economic standstill, the European Central Bank (ECB) is committed to prevent and thwart any inflation of the Euro. Meanwhile the ECB is showing the U.S. some temporary charity by providing between USD 40 and 50 billion in overnight operations, USD 40 billion in 28-day operations, USD 20 billion in each one of the 84-day operations and USD 20 billion in each one of the forward US dollar operations.

 

Nevertheless the ECB is retaining flexibility to react to changing market conditions to protect itself from U.S. hegemony and economic stupidity.

 

Former U.S. President Jimmy Carter blasted President Bush for his foolish economic policies causing $1 trillion indebtedness to China. The atrocious economic policies of the Bush administration has caused the worst global financial crisis since the Great Depression of the 1930s. Profligate spending, massive borrowing and dramatic tax cuts since President George W. Bush took office in 2001 are fully behind the market turmoil and economic crisis.

 

The economic situation is an entrenched problem, which is going to take years to correct what has been done economically. Eight years ago, the United States had a budget surplus, low inflation and a stable, strong economy. However deregulation and withdrawal of supervision on Wall Street has encouraged irresponsibility in the U.S. financial system, enabling banks to borrow 30 times their value.

 

The G-7 have their hands full as they try to help the U.S. economy that has yet to guaranty interbank loans. If a national government does not insure and believe in its own banking system, how can its people have any degree of confidence?

 

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Finance ministers from the world’s top economies posed for pictures and pledged Friday to work together to stabilize global financial markets, but did not provide concrete plans to address the credit chaos sweeping the world.

 

The G-7 agrees that the current situation calls for urgent and exceptional action. Although they commit to continue working together to stabilize financial markets and restore the flow of credit, to support global economic growth, nobody has been transparent enough to tell us how.

 

Paulson emphasized collaboration and coordination, which signals eventual consolidation as Pres. Bush has for the past 8 years given U.S. debt to foreign nations. Paulson himself has previously prepared American citizens in talks about more financial institutions failing.

 

General Motors plummeted to a third of its original value with credit markets freezing up.

The so called assets in the failing mortgage industry are toxic and dafaulted assets at best, which few want.

 

The finance ministers have their work cut out for them. They surely must announce concrete steps by the end of the weekend if they want to soothe the roiling markets. The stock markets throughout the world are not responding to cheap talk and press hype. We need to see real action. Any thing less tells me central banks are conspiring to consolidate and devalue national currencies so as to usher in a new world order.

 

The Dow Jones industrial average fell over 1,874 points, or 18%, in its worst weekly decline ever on both a point and percentage basis. Wall Street lost roughly $2.4 trillion in market value during the week.

 

Markets worldwide fared no better, with every major exchang losing. Black Friday as it was called in Australia caused stock markets to take an 8% nosedive adding to a 42% drop in a year within the Aussie market. The Japanse stocket market has lost 53% this year thus far. Russia’s index has fallen 61% as investors pull out money and flee for cover. The UK’s top companies have fallen 21%.  Germany’s market fell 7% and 28% on the week.

 

There is no containing the deepening global financial crisis. Central Banks and the Federal Reserve coordinated interest rate cuts did not soothe nervous investors.

The Fed lowered its benchmark interest rate by a half-point to 1.5%. The European Central Bank, which had kept rates unchanged as the Fed engaged in a string of rate cuts over the last year, cut its rate by a half-point to 3.75% – its first cut in five years. The Bank of England also cut its rate by a half-point to 4.5%. The Swiss, Canadian and Swedish central banks also made cuts. Yet the Libor rate rose disproportionately eliminating the usefulness of any cuts as indicated in the markets which failed to respond.

 

The Dutch and Belgian governments took over Fortis, before selling pieces of it to BNP Paribas. The British are nationalizing mortgage lender Bradford & Bingley.

And some nations, including Ireland, France and Germany, have said that all bank deposits will be insured by their governments for the time being.

 

Afraid to insure their own bank deposits to the full the United States and United Kingdom are developing plans to inject capital into banks, which would entail acquiring stakes in the institutions.

 

Some speculate the G-7 countries can work through this crisis by dealing with bad assets, recapitalizing banks, and providing much needed liquidity. Other economists predict it will take up to 2 years to fully work through the economic problems created over the past 8 years. Fixing the financial, regulatory, and supervisory system that failed will take time and not be done overnight.

 

Each country, of course, will have to take steps to address its particular problems.

U.S. Treasury Paulson himself mentioned that the press and some markets are naive to think that different countries with different financial systems – and different political systems, different laws – are going to come up with precisely the same policy to deal with the issues.

 

That being said, I am betting on the European Central Bank where China, Russia, Iran, OPEC, Dubai, and other major global financial players are putting their assets and foreign currency reserves. When China who holds $1 trillion in U.S. debt begins to diversify after the Fannie Mae and Freddie Mac fiasco, look for chaos to surface and devastate U.S. markets and plunge the dollar to the basement.

 

Billionaires George Soros, Warren Buffet, and American hedge fund manager John Paulson are betting against the dollar. I’m putting my money therefore in gold or Euros.

 

Care to join me?

 

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Buy Euros while the dollar is strong before Wall Street reveals disaster and bankruptcy in America. Warnings from Federal Reserve Chairman Ben Bernanke and Central Banks across the world. Turmoil for global financial markets. Buy Euros or gold now!

 

Warnings from Federal Reserve Chairman Ben Bernanke and Central Banks across the world. Turmoil and serious consequences for global financial markets. Buy gold or Euros to protect your savings.

 

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Bernanke’s fiscal policy speech to the Bank of International Settlements (BIS) on July 8, 2008 calling the U.S. economy in “turmoil” was quite revealing. Meanwhile Bernanke and Paulson reported to the media and American people the economy was fundamentally strong.

 

Bernanke told the BIS in July, 2008 it is “Unrealistic to think financial crisis can be eliminated”.

 

The euro was used in around 37% of all foreign exchange transactions in April, 2007.

 

Protect your savings!

 

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Libor Rate Indicates a Dying Dollar and Sketchy U.S. Treasury

The LIBOR is among the most common of benchmark interest rate indexes used to make adjustments to adjustable rate mortgages.

Watch out for choking credit markets, as the financial crisis spreads from the U.S. to European stock markets causing a domino effect throughout the financial world.

Over the weekend, Germany implemented a bailout of its own, injecting €50 billion to help out struggling Hypo Real Estate bank, the nation’s Financy Ministry said.

Nevertheless as banks in Europe struggle, the European Central Bank has maintained its key lending rate. That tells me the Euro will be the strongest currency in the world and the one to invest in.

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If you like gold for asset protection – play it safe here.   http://www.bullionvault.com/#paulfdavis

The 3-month Libor rate seems to be getting higher as the global credit crunch tightens on national banks throughout the world. 

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www.PaulFDavis.com – author, worldwide speaker, and consultant 

Reform of Fannie Mae & Freddie Mac – Homeownership & Equity Protection Act

1.  

   1. After 12 years of Republican control, the Republicans failed to enact meaningful reform of Fannie Mae and Freddie Mac.

2.  

   1. In 1994 the Democratic Congress passed the Home Ownership & Equity Protection Act (HOEPA).

The Truth versus the Republicans on the Regulation of Subprime Mortgages and Fannie Mae and Freddie Mac

The Homeownership & Equity Protection Act

1. That law included a host of consumer protections for high-cost mortgages and specifically required that the Federal Reserve issue rules to stop abusive lending practices.
1. During the 12 years of Republican control – which included the subprime housing bubble at the heart of our current economic crisis – no regulation was ever enacted under that authority.
1. Former Fed Chairman Greenspan was asked numerous times to issue rules (including internally by Former Governor Ed Gramlich) but refused on ideological grounds.
1. Republican ideologues have long thwarted mortgage and consumer protection.
1. Only after the Democrats took control of the Congress and initiated specific legislative reforms (H.R. 3915) did Federal Reserve Chairman Ben Bernanke finally issue regulations under the very authority they have had since 1994.

Reform of Fannie Mae & Freddie Mac

Buy Euros before the greenback has a heart attack and your dollars are worthless!

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