Today it is the Cypriots; tomorrow it will be you!
Also, from INVESTOR’S BUSINESS DAILY
Cannot prosecute systemically dangerous institutions, sez Timmeh Shitener.
Every time is a great time to buy Real Estate!
Keep ’em churning!
U.S. Treasury Allows China To Hide Bond Purchase Details
China has been given a direct line to the Treasury, the only country ever allowed the privilege, so that it may purchase (or not purchase) bonds without American banks being privy to the details of their transactions. This is yet another revealing sign that China, because of its detrimental control over the fate of our currency, has been given free reign to roam about our markets and our infrastructure at will. China is being given special treatment for one reason; they are being handed the
keys to our economic castle as payment for the coming devaluation of the dollar based securities they will still be holding when the Fed announces QE3. It is no coincidence that so many gifts have been handed to the Chinese in the past year alone.
[ Story ]
In 2009, when Treasury officials found China was using special deals with primary dealers to conceal its U.S. debt purchases, the Treasury changed a rule to outlaw those deals, Reuters reported last June.
Oh I seeee, it’s a work-around. Evasion by any other name is still…
Cui bono? Is it even legal (I know, when has the government ever obeyed the law)? Does this open up the T market to manipulation? I suppose if they promised never to do that, we’re good. Money good.
It is similar to one drug addict allowing another access to their private stash. Will it be there tomorrow?
It is customary for favored customers get special privileges. Just last week came this related (although neither story acknowledges the other) news:
Giant banks owned by the Chinese government are coming to the U.S.
The Federal Reserve on Wednesday approved plans by three state-backed Chinese banks to expand in the U.S., including the first acquisition of a U.S. retail-banking network by a state-owned Chinese lender.
[ WSJ ]
Not one, not two, but three Chinese banks. A quantity discount? Way to save there, guys.
No film at 11.
What is that fishy smell?