Comments on: Alan Grayson grills Ben Bernanke on Foreign Lending

By: James J

James J — Fri, 31 Jul 2009 22:08:30 +0000

Everyone should do a bit more research before commenting on this. Grayson is a fool. He appears to trip up Bernanke because his question is so economically stupid that it doesn't make sense. There is ZERO possibility that Bernanke would know which banks receive loans…our Fed provides credit to their Central Bank…and from there it is their issue, not ours. Also, the New Zealand comment is pure idiocy. The Fed extended CREDIT to NZ, not a loan…the equivalent to the available credit on one's credit card. NZ has never, ever drawn a penny on this available credit…the question is stupid. Unfortunately, good people are drawn to moronic legislators who don't have a clue what they're talking about. If the soundbite is good, then it must be true. C'mon folks, do some research and understand the facts.

By: Justin

Justin — Mon, 27 Jul 2009 15:13:49 +0000

Not lending, but a swap? Pretty flimsy semantics, even using the Fed's own explanations.

http://www.federalreserve.gov/monetarypolicy/bst_…

The Fed provides a "swap line" to foreign banks, who "draw" on that line to acquire dollars, with a contractual agreement to "buy back" their own currency at a later date certain at a rate certain. This has all the trappings of a "loan," with none of the regulation.

Given that the Federal Reserve — i.e., our money — will take a sharp hit if "Central Bank A" cannot, for whatever reason, buy back its currency at the target date, wouldn't we expect the Fed Chairman (or its IG) to know with something more acute than "banks" exactly where the dollar credit line went?

By: bud

bud — Sat, 25 Jul 2009 23:52:55 +0000

did the fed take currency off the market for the swap? OF COURSE NOT. The fed created money with a balance sheet entry and then used that cash for the swap. After the swap expires, the money will be destroyed.

By: Guest Post: Representative Alan Grayson on His Questions to Bernanke Over Dollar Swap Lines | California Home Sales Solutions

Sat, 25 Jul 2009 02:00:51 +0000

[...] was some good discussion on the subject, and I enjoy reading the posts and the [...]

By: George Dewey

George Dewey — Fri, 24 Jul 2009 13:48:12 +0000

It's pretty sad that Bob understands it and can articulate it, but the Chairman of the Federal Reserve does not. He didn't even know how or when The Fed was created… OR which central banks in Europe the funds went to. These guys are lost. No wonder they don't want TRUE audits.

By: AngelaTC

AngelaTC — Fri, 24 Jul 2009 05:11:28 +0000

Bernanke lied when he said that these loans didn't cost AMericans anything. If interest were allowed to rise, the money we have in savings would earn more. Printing money and loaning it out, keeping the interest themselves, does indeed cost Americans something.

By: marcg

marcg — Fri, 24 Jul 2009 02:43:58 +0000

Bob,

Thanks for the links for clarification. Appreciate it.

-Marc

By: bob

bob — Fri, 24 Jul 2009 00:38:05 +0000

I'm trying to keep this simple. This is a currency swap. I'm not defending Bernanke - he should have answered those questions far better. But people need to understand the facts. To answer some of your questions, I recommend reading: http://www.nakedcapitalism.com/2009/07/guest-post... and http://economistsview.typepad.com/economistsview/... and http://www.econbrowser.com/archives/2009/07/looki...

By: Guest Post: Representative Alan Grayson on His Questions to Bernanke Over Dollar Swap Lines | Froogalizer.com

Thu, 23 Jul 2009 22:12:22 +0000

[...] was some good discussion on the subject, and I enjoy reading the posts and the [...]

By: JustGetThere

JustGetThere — Wed, 22 Jul 2009 11:15:21 +0000

Alan Grayson grills Ben Bernanke on Foreign Lending …

By Marc Gallagher

Liberty Maven | Alan Grayson, a Florida Democrat who has been very critical in the past of Fed actions takes it to Bernanke today regarding foreign central bank lending. If the 90 or so Democratic cosponsors of Ron Paul’s HR1207 b…

By: Alan Grayson grills Ben Bernanke on Foreign Lending « Ancavge

Alan Grayson grills Ben Bernanke on Foreign Lending « Ancavge — Wed, 22 Jul 2009 11:08:19 +0000

[...] 22, 2009 · Leave a Comment Marc Gallagher Liberty Maven July 21, [...]

By: Alan Grayson grills Ben Bernanke on Foreign Lending « Norcaltruth

Alan Grayson grills Ben Bernanke on Foreign Lending « Norcaltruth — Wed, 22 Jul 2009 10:03:47 +0000

[...] Alan Grayson grills Ben Bernanke on Foreign Lending source: Marc Gallagher [...]