China says US Fed Reserve Needs G20 Approval Before Taking Future Actions

Posted on Nov 09, 2010 in Economic News

Kevin Hayden

China says G20 should monitor US Fed

China’s state media has issued a new broadside at the US Federal Reserve’s move to prime the US economy, suggesting the Group of 20 should monitor policy shifts by the US central bank.

The Xinhua news agency said in a commentary the Fed was “risking the global recovery by following its own track for economic revival” by spending an extra $US600 billion ($A593.65 billion) buying Treasury bonds to stimulate the US economy.

“There is an urgent need for the G20 … to set up a new mechanism that effectively monitors the issuer of the international reserve currency, especially when it is not able to carry out responsible currency policies,” Xinhua said.

“It is necessary for the issuer of the international reserve currency to report to and communicate with the G20 group before it makes major policy shifts.”

Hayden’s Note:

So now China is demanding the Federal Reserve confer and seek approval with the G20 – a global governing body – before making financial decisions, good or bad.  Hmmm, maybe this is what was planned all along.  As conspiratorial as that sounds, I can find no other earthly reason that Ben Bernanke, a man of such genius (although I despise him, credit is given where it’s due), could possibly think quantitative easing is good for the economy in our present situation. 


Morgan Stanley banker escapes felony charges for hit and run ‘because it could jeopardize his job

A Morgan Stanley wealth manager will not face felony charges for a hit-and-run because Colorado prosecutors don’t want him to lose his job.

Martin Joel Erzinger, who manages more than $1 billion in assets for Morgan Stanley in Denver, is being accused only of a misdemeanor for allegedly driving his Mercedes into a cyclist and then fleeing the scene, Colorado’s Vail Daily reports. The victim, Dr. Steven Milo, whom Erzinger allegedly hit in July, suffered spinal cord injuries, bleeding from his brain and, according to his lawyer Harold Haddon, “lifetime pain.”

But District Attorney Mark Hurlbert says it wouldn’t be wise to prosecute Erzinger — doing so might hurt his source of income.  The victim has stated he wants criminal justice, not civil compensation.


PM Selloff Reason: CME To Raise Margin Requirements For Silver From $5,000 To $6,500

And if that doesn’t work, there is always confiscation.

“CME confirmed silver margins raised from $5000 to $6500 (30%) effective 11/10 settl – no other metals effected”

Presumably, this affects the maintenance margin. And is a lovely way to kill paper longs…. but not shorts, of course.

This is also the last remaining self-regulating way for the market to tell the genocidal lunatic in the Eccles building to go fornicate himself, and his excess liquidity.

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