Congress Asks Bernanke For Full Risk Analysis On Fed's Soaring Balance Sheet | Forex Factory

Congress Asks Bernanke For Full Risk Analysis On Fed's Soaring Balance Sheet | Forex Factory

Congress Asks Bernanke For Full Risk Analysis On Fed's Soaring Balance Sheet

From zerohedge.com

Several days ago we wrote about what we defined as the Fed's "D-Rate" - the interest rate at which the cash outflows from payments by the Fed on its Excess Reserves will surpass that cash inflows from its asset holdings, a very troubling day because as we further explained, from that point on the Fed would be "printing money just to print money." In other words, with every passing day, the Fed is getting ever closer to the point where the inflation it so very much wishes to unleash will force it to essentially request a technical bailout from Congress (and certainly will halt all future interest remittances to the ... (full story)

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Feb 21, 2013 10:18pm

I'm not sure which is better. The article? Or all the comments that follow it. On one hand I'm really glad so many out there "get it". On the other? I fear without implementing the first amendment, we won't be able to do anything to stop the willful destruction of it all.

Guess that's why our forefathers had to take up arms too.

Feb 21, 2013 10:50pm

Quoting Pip Anon

Disliked

Our politicians refuse to allow the economy take it's natural course. Emperor Obama had two campaigns depending upon the economic outcome. If the Fed didn't do the printing the economy would even be more sluggish.

Obama is the Oz-man behind the curtain pulling the strings making things appear grander than they are. The Fed has no idea how to unwind without throwing markets in a tisy.

Ignored

At this point, the crooks in politics have so mismanaged things through shear GREED that they have no choice to allow the economy to take it's natural course. They now know if they did, it would have to collapse completely and start anew. Something (much like bankruptcy), I think needs to happen. As you say, there is NO way to "unwind" this mess. Let the walls crumble and then WE THE PEOPLE will build them again. Make no mistake, it's going to HURT but then, healing usually does.

Feb 21, 2013 11:16pm

Quoting Pip Anon

Disliked

Revolution not necessarily violence. But by God, when are the American people going to raise their voice load enough that they have no other option but to heed warning or fear consequences.

Ignored

And therein lies the problem. The vast majority of the "voting" American public has been so dummied down over the past 50 years they have raised thier voices and elected the likes of Obama TWICE!!

I certainly don't want violence but even if we the people did a complete 180 in thought, can it really save the situation now? AND, that would pre-suppose that we actually have a side to vote for. I'm sorry to sound so pestimistic but, a vote for either side is still a loosing vote in my book. The rederic may be different but the agenda reamins the same on both sides.

The only way we could even hope to gain the attention of our failed leaders would be to cut the purse strings completely, and instantly. But so long as they and thier buddies continue to rape us of our wealth while living on the high, they will never even stop to listen to us.

Feb 21, 2013 11:20pm

Quoting MisterSpread

Disliked

I'm not American, but it makes me puke just to think that anyone can think to destroy a national landmark ( Twin Towers ) and kill all those people just to invade a country to take their oil.
Cheers,
VladG

Ignored

Oh my Lord another one??? Take their oil?? If that's what we wanted we'd HAVE IT!!! But instead we pay through the nose for it. Please.

Feb 21, 2013 11:49pm

Quoting colobok

Disliked

Nice! glad to hear the voice of another "dummied down" American

Ignored

Yep! And we're not Forex traders either. Your obvious intelligence has me at a severe disadvantage sir. I just can't think like you can.

Feb 21, 2013 11:51pm

Quoting Pip Anon

Disliked

Actually, Europeans are charged the BRENT price, which is higher. Plus, there is increasing supply of fuel domestically. We pay taxes both federal and state tax.

Ignored

Yep, on average .40 cents a gallon for gas. .60 to .80 on Desiel for us truckers.

Feb 22, 2013 12:13am

Quoting Pip Anon

Disliked

I bet. I heard if just the 18-wheelers in the US switched over to Nat. Gas OPEC would mess themselves.

Ignored

Never heard that but wouldn't doubt it for a second. When I see what just my one truck uses in a month, multiplied by the millions and millions out there? Holy Crap! LOL

The company I lease to which is a small to mid sized truck company (about 700 trucks) averages almost 2 million a month in fuel costs. They are but one of a couple hundred thousand truck companies. The big guys like Swift and Schnider have over 5000 to 8000 rigs each...LOL

Yep, OPEC would almost fold. Then you'd really hear the rest of the world screaming about thier prices....LOL

Feb 22, 2013 4:29am

Quoting Spreadbetter

Disliked

It's a shame that most Americans reveal their misguided patriotism and become very defensive wrt to resource wars. It always stifles potential debate. The USA uses 25% of energy for 5% of the globes population. We're passed a tipping point, we're living through an energy crisis, perhaps the last and as such the defining phenomena that will shape permanent geo political lines.

Ignored

Wow! You truly are the example of closed minded blind obedience to the propaganda machine. The simple truth? We could drill our own oil and natural gas and survive the next 500 years without the "worlds resources" and by then have a viable energy replacement. Next simple truth? If we wanted the "worlds resources" who could have stopped us from taking it? Next simple truth? We've done more good (on our tax payer dollars) for the the likes of countries like yours than ALL OTHER NATIONS COMBINED and you have the smug balls to question our integrity?

Perhaps I do have a strong sense of patriotism. But then, we've EARNED IT!!!

No, it's blind ignorance like yours that prevents debate which is why OUR people are going broke bailing YOUR people out of the messes you socialists keep creating! Wake up or shut up. Either is fine with me.

Feb 24, 2013 3:12am

lol...
I saw the title of this news item and started salivating.

Very true Greenstar

It's enough to literally drive an even mildly honest mind insane isn't it, and I don't even live there.

For the first time, I looked into my 14 month olds eyes and feared for her future, since things are only getting worse. Lies, murder and deceit can only be covered up by more of the same (exponentially).

Feb 21, 2013 10:34pm

Quoting albchr

Disliked

I'm not sure which is better. The article? Or all the comments that follow it. On one hand I'm really glad so many out there "get it". On the other? I fear without implementing the first amendment, we won't be able to do anything to stop the willful destruction of it all.

Guess that's why our forefathers had to take up arms too.

Ignored

Our politicians refuse to allow the economy take it's natural course. Emperor Obama had two campaigns depending upon the economic outcome. If the Fed didn't do the printing the economy would even be more sluggish.

Obama is the Oz-man behind the curtain pulling the strings making things appear grander than they are. The Fed has no idea how to unwind without throwing markets in a tisy.

Feb 21, 2013 11:00pm

It will suck, but life is not full of butterflies and candy canes every day. Americans, majority anyway, are resilient. The US has been living beyond it's means the last 20 years. We need to hit the restart button. You cannot prolong the inevitable.

Abraham Lincoln:

"America will never be destroyed from the outside. If we falter and lose our freedoms, it will be because we destroyed ourselves."

"We the people are the rightful masters of both Congress and the courts, not to overthrow the Constitution but to overthrow the men who pervert the Constitution."

"This country, with its institutions, belongs to the people who inhabit it. Whenever they shall grow weary of the existing government, they can exercise their constitutional right of amending it, or exercise their revolutionary right to overthrow it."

Revolution not necessarily violence. But by God, when are the American people going to raise their voice load enough that they have no other option but to heed warning or fear consequences.

Feb 21, 2013 11:33pm

Quoting albchr

Disliked

Oh my Lord another one??? Take their oil?? If that's what we wanted we'd HAVE IT!!! But instead we pay through the nose for it. Please.

Ignored

Love that propaganda. War was a clusterf%$k, but oil, really? As we pay 4 bucks a gallon in a shit economy. Kind of like saying Romanians sleep with goats.

Feb 21, 2013 11:48pm

Quoting Spreadbetter

Disliked

And yet Americans pay nearly 40% less than Europeans for fuel, in effect energy is subsidised by the military industrial complex being a clandestine tax 'rewarded' and given back at the pump. If Americans paid similar costs to Europe the country would grind to a halt overnight. Close on 60% of uk cost at the pump is tax, iirc in the us it's circa 20%, at some stage that gap may have to close.

Ignored

Actually, Europeans are charged the BRENT price, which is higher. Plus, there is increasing supply of fuel domestically. We pay taxes both federal and state tax.

Feb 21, 2013 11:58pm

Quoting albchr

Disliked

Yep, on average .40 cents a gallon for gas. .60 to .80 on Desiel for us truckers.

Ignored

I bet. I heard if just the 18-wheelers in the US switched over to Nat. Gas OPEC would mess themselves.

Feb 22, 2013 12:28am

Quoting Spreadbetter

Disliked

That gap may close in this decade. Not nec linked to that theory this site (and oil drum naturally) has proved to be an intersting read on the overall subject and dilemma

http://oilprice.com/Energy/Oil-Price...l-Benefit.html

Ignored

I have lived in Europe. I know petrol is expensive, but to link it to a war for stealing oil is just asinine. The spread has been narrowing, but there are many factors. The Gulf is full of drilling, the midwest and now north midwest with shale. It is not where it should be, but US is producing more of its own oil.

Nevertheless, it's hard to compare. The minimum wage is 7.5 I believe and many areas are paying more than 50% of hourly wage on a gallon of gas.

Feb 22, 2013 12:49am

Quoting Spreadbetter

Disliked

It's a shame that most Americans reveal their misguided patriotism and become very defensive wrt to resource wars. It always stifles potential debate. The USA uses 25% of energy for 5% of the globes population. We're passed a tipping point, we're living through an energy crisis, perhaps the last and as such the defining phenomena that will shape permanent geo political lines.

Ignored

No misguided patriotism. When you have tangible facts, let me know. Do Americans waste energy? Yep. Does America like to build big things? Yep. And as bad as America is portrayed everyday around the globe it does stop the 100,000s of Europeans, Asians, Central Americans from flocking to the state to enjoy freedoms they can't get in their own country. But no worries, our Emperor will turn it into Socialist Europe.

Feb 21, 2013 11:13pm

Quoting Greenstar

Disliked

We have had a concerted effort to destroy this country in particular above all others because of our history of relative freedom compared with anywhere else, and the only quality of life we had which made it happen was economic freedom to build up a middle class - the very top HATES any competition - no other country has the degree of propaganda, mind control, slave training, red tape, and truly demoniac people at the top. The military is awake; I have talked with them where I work at a high military public school. One Air Force officer brought...

Ignored

It's smoke and mirrors, and all the faces that we see on TV are just puppets in this world wide demonic money game

. I'm not American, but it makes me puke just to think that anyone can think to destroy a national landmark ( Twin Towers ) and kill all those people just to invade a country to take their oil.
The worst thing is that we can speak and comment 1.000 pages from here, but still we will not change anything in this global manipulation.

Cheers,
VladG

Feb 21, 2013 10:29pm

We have had a concerted effort to destroy this country in particular above all others because of our history of relative freedom compared with anywhere else, and the only quality of life we had which made it happen was economic freedom to build up a middle class - the very top HATES any competition - no other country has the degree of propaganda, mind control, slave training, red tape, and truly demoniac people at the top. The military is awake; I have talked with them where I work at a high military public school. One Air Force officer brought up, without my introducing the subject, in regard to 9 11 that 'our people did it' - and when asked how many colleagues, compatriots knew this, remarked 'we all do.' It was astonishing to hear but I later learned, not unusual. Marines were disarmed around Obama for the inauguration.

We must encourage children to turn off the television, and train them in some kind of morality since a scientific system of degradation has been imposed/implemented for decades and the result is: most people, outside the military, are asleep. Bottom line: we need the ability to be entrepreneurial, or all is lost AND PEOPLE MUST NOT reach the point where no one has even any MEMORY of what generating wealth with relative independence of effort is like. . . .

Feb 22, 2013 2:26pm

Quoting Spreadbetter

Disliked

There's so much wrong with your ranting bile masquerading as the 'opinion' of a deluded hypocrite it's difficult to know where to begin. But in some ways it's relevant that you hold such ignorant, childish and 'fantastic' views as you're simply reflecting the drone culture you've created domestically. It's not your fault, the brainwashing began in the cradle therefore you require sympathy more than explanation and interaction.

Ignored

wow...relax

Feb 21, 2013 10:45pm

Here here Greenstar!! Absolutely true!

Feb 21, 2013 11:21pm

Quoting colobok

Disliked

American people are not Forex traders

Ignored

LMAO. What rock did you crawl out from under?? Last time I looked, I was born here.

Feb 24, 2013 6:34pm

They could/would print more money to service the debt. There is a pretty good article on zerohedge regarding how the Fed needs to print more money to print more money...

http://www.zerohedge.com/news/2013-02-23/when-fed-has-print-money-just-print-money

Quoting Guest

Disliked

"the tiniest rise in rates will immediately put the Fed into the red" - so the Fed will go bust, right?

Ignored

Feb 21, 2013 10:15pm

They didn't think about this $2 trillion ago? It's all dandy when the candyman hands out free candy.

Feb 21, 2013 11:33pm

Quoting colobok

Disliked

Nice! glad to hear the voice of another "dummied down" American

Ignored

Where does conspiracies get you?

Feb 22, 2013 1:08am

Already told you what the irony was.

Feb 22, 2013 2:02am

Remember "The Fed" is not part of the US government. It is a private consortium of banks designed to maintain itself. The Fed really only cares about itself as an independent unit, as does any seemingly governmental agency, or government agency. They of course regulate them selves...ain't that just grand. Oh, andby the way...just bend over an take it....it's for your own good.

Feb 21, 2013 10:21pm

Interestingly, Paul Krugman made a comment in the comment section too, and of course got bashed hard for it.

Feb 21, 2013 11:26pm

Quoting albchr

Disliked

Oh my Lord another one??? Take their oil?? If that's what we wanted we'd HAVE IT!!! But instead we pay through the nose for it. Please.

Ignored

Nice! glad to hear the voice of another "dummied down" American

Feb 21, 2013 11:39pm

I wonder if this massive volte face, in concentrating their efforts on domestic oil and gas production through for example fracking, is in fact a tacit admission that a death cross has been reached in terms of mineral theft through crusades and the creation of client states? Have the powers that be in the USA 'done the math' and have now realised the cost >benefits are simply not crunching, particularly with China's exponential needs and competition? Therefore the future is the USA winding down its circa 700 military bases and becoming more insular and protectionist?

Quoting albchr

Disliked

Oh my Lord another one??? Take their oil?? If that's what we wanted we'd HAVE IT!!! But instead we pay through the nose for it. Please.

Ignored

Feb 21, 2013 11:43pm

And yet Americans pay nearly 40% less than Europeans for fuel, in effect energy is subsidised by the military industrial complex being a clandestine tax 'rewarded' and given back at the pump. If Americans paid similar costs to Europe the country would grind to a halt overnight. Close on 60% of uk cost at the pump is tax, iirc in the us it's circa 20%, at some stage that gap may have to close.

Quoting Pip Anon

Disliked

Love that propaganda. War was a clusterf%$k, but oil, really? As we pay 4 bucks a gallon in a shit economy. Kind of like saying Romanians sleep with goats.

Ignored

Feb 22, 2013 12:16am

That gap may close in this decade. Not nec linked to that theory this site (and oil drum naturally) has proved to be an intersting read on the overall subject and dilemma

http://oilprice.com/Energy/Oil-Prices/Whats-Causing-the-Price-Gap-between-WTI-and-Brent-and-Who-will-Benefit.html

Quoting Pip Anon

Disliked

Actually, Europeans are charged the BRENT price, which is higher. Plus, there is increasing supply of fuel domestically. We pay taxes both federal and state tax.

Ignored

Feb 22, 2013 12:19am

The spend on fuel by the USA military industrial complex is eye watering also. Circa 340,000 barrels a day. Madness

Quoting albchr

Disliked

Never heard that but wouldn't doubt it for a second. When I see what just my one truck uses in a month, multiplied by the millions and millions out there? Holy Crap! LOL

The company I lease to which is a small to mid sized truck company (about 700 trucks) averages almost 2 million a month in fuel costs. They are but one of a couple hundred thousand truck companies. The big guys like Swift and Schnider have over 5000 to 8000 rigs each...LOL

Yep, OPEC would almost fold. Then you'd really hear the rest of the world screaming about thier prices....LOL...

Ignored

Feb 22, 2013 12:41am

It's a shame that most Americans reveal their misguided patriotism and become very defensive wrt to resource wars. It always stifles potential debate. The USA uses 25% of energy for 5% of the globes population. We're passed a tipping point, we're living through an energy crisis, perhaps the last and as such the defining phenomena that will shape permanent geo political lines.

Quoting Pip Anon

Disliked

I have lived in Europe. I know petrol is expensive, but to link it to a war for stealing oil is just asinine. The spread has been narrowing, but there are many factors. The Gulf is full of drilling, the midwest and now north midwest with shale. It is not where it should be, but US is producing more of its own oil.

Nevertheless, it's hard to compare. The minimum wage is 7.5 I believe and many areas are paying more than 50% of hourly wage on a gallon of gas.

Ignored

Feb 22, 2013 1:00am

Thanks for that. You'll be telling me you don't do irony next ;-)

Quoting Pip Anon

Disliked

No misguided patriotism. When you have tangible facts, let me know. Do Americans waste energy? Yep. Does America like to build big things? Yep. And as bad as America is portrayed everyday around the globe it does stop the 100,000s of Europeans, Asians, Central Americans from flocking to the state to enjoy freedoms they can't get in their own country. But no worries, our Emperor will turn it into Socialist Europe.

Ignored

Feb 22, 2013 7:46am

There's so much wrong with your ranting bile masquerading as the 'opinion' of a deluded hypocrite it's difficult to know where to begin. But in some ways it's relevant that you hold such ignorant, childish and 'fantastic' views as you're simply reflecting the drone culture you've created domestically. It's not your fault, the brainwashing began in the cradle therefore you require sympathy more than explanation and interaction.

Quoting albchr

Disliked

Wow! You truly are the example of closed minded blind obedience to the propaganda machine. The simple truth? We could drill our own oil and natural gas and survive the next 500 years without the "worlds resources" and by then have a viable energy replacement. Next simple truth? If we wanted the "worlds resources" who could have stopped us from taking it? Next simple truth? We've done more good (on our tax payer dollars) for the the likes of countries like yours than ALL OTHER NATIONS COMBINED and you have the smug balls to question our integrity?...

Ignored

Feb 22, 2013 8:11am

Quoting Spreadbetter

Disliked

...

Ignored

You sound like Loadedgun.Same words, same style, same type of attack on people...or you are "manipulator", Loadedgun's baby-sitter who is banned by ForexFactory.

Feb 22, 2013 8:24am

Quoting JollyBean

Disliked

Interestingly, Paul Krugman made a comment in the comment section too, and of course got bashed hard for it.

Ignored

That's not Paul Krugman. The real Krugman would never employ the phrase, "the science of economics dictates." Any trained economist would recognize this phrase as equivalent to saying, "the language of Portugese dictates..."

For any significant applied problem, economics simply provides a formal language for discussing things. Economists themselves may attempt to "dictate" from time to time, but the discipline itself dictates very little.

Feb 22, 2013 8:50am

Given that you believe astrology determines FX movements I'd suggest your opinion is as credible as his. And no, I'm not him or any other astro turfing sock puppet alias he may use. Nicely done with the paranoia though.

Quoting mima

Disliked

You sound like Loadedgun.Same words, same style, same type of attack on people...or you are "manipulator", Loadedgun's baby-sitter who is banned by ForexFactory.

Ignored

Feb 22, 2013 9:51am

Moi? Actually no I don't take myself seriously, come to think of it I'm not sure I take trading (as retail guys perceive it) that seriously. Once you've developed your edge and you roll with it, day after day and grind out the high probability results, I'm sure you'd agree that it's more repetition than ability :-/

Quoting jaygee

Disliked

lol. i take it you dont take yourself too seriously like some in here? mima and i like to have fun with some of the more serious demo traders in here.

Ignored

Feb 22, 2013 12:21pm

BTW: My birth sign is Scorpio - so careful with cursing out loud even when I am not around and or trying to defame me with outright lies - not many can cope with my sting. A word is enough for the wise. Thanks in advance.

Feb 21, 2013 10:53pm

risk analysis? more like damage control is the term

Feb 21, 2013 10:58pm

Benny should be in jail 6 years ago along with little Bush and secretary Paulson for what they did to the dollar and this country

Feb 21, 2013 11:06pm

American people are not Forex traders

Trader#8454

Feb 22, 2013 8:08am

Bernanke's grand experiment may end up as a mother of a bubble ...

"Roubini being Roubini, he doesn’t predict a happy ending to the Fed’s current experiment."

http://finance.yahoo.com/blogs/daily-ticker/nouriel-roubini-bullish-now-mother-bubbles-begun-140143386.html

Feb 22, 2013 8:58am

Mima uses meteorological methodology. It is much more accurate.

Feb 22, 2013 9:22am

Accurate in predicting market movements? No, it isn't.

Quoting jaygee

Disliked

Mima uses meteorological methodology. It is much more accurate.

Ignored

Feb 22, 2013 9:40am

lol. i take it you dont take yourself too seriously like some in here? mima and i like to have fun with some of the more serious demo traders in here.

Feb 22, 2013 10:01am

it can be a grind for sure.

Trader#2EF6

Feb 22, 2013 10:21am

thanks Roubini my new buddy, I just closed out long dow futures with 20 pt win after nearly 48 hours after an intended quick scalp on FOMC minutes went badly wrong and I got within a whisker of being stopped out about 160 pt down yesterday. I am so accustomed to dow v-bottoms, I would never have believed the havoc the fed minutes would cause. The one lesson I still use from a previous and despised mentor is: if the trade goes against you long enough and you don't get stopped out, be happy with a small profit if you get it, don't be greedy be thankful. dow will probably fly up now, H1 looks like inverse head & shoulders. (I couldn't hedge, my usual hedge is now weaker than the dow).

Feb 22, 2013 12:17pm

I was not here today and did not see, read or hear about anything that was said and done here (on this particular page) today. I was too busy nursing significant profits. Happy trading to all.

Trader#8454

Feb 21, 2013 10:18pm

"the tiniest rise in rates will immediately put the Fed into the red" - so the Fed will go bust, right?

Trader#76DF

Feb 21, 2013 10:48pm

Bernanke will receive billions from politicians and CEOs who benefited from rally after he leaves , the money will be in the cayman islands under benflation .

Trader#13B4

Feb 22, 2013 2:31pm

funny thing about people - Most people believe they are of an above intelligence. Apparently we have them all in here today. Quite hilarious, thanks for the laughs.

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Feb 21, 2013 9:32pm
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