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PBOC’s Zhou Urges Cutting China’s $3 Trillion of Foreign-Exchange Reserves

April 19, 2011 1 comment

bloomberg

PBoC Governor Zhou Xiaochuan

Zhou Xiaochuan, governor of the People’s Bank of China. Photographer: Qilai Shen/Bloomberg

China needs to reduce its foreign- exchange reserves as they exceed the level the nation requires, central bank Governor Zhou Xiaochuan said.

The management and diversification of the holdings, which topped $3 trillion at the end of March, should be improved, Zhou said after a speech at Tsinghua University in Beijing late yesterday. The rapid accumulation is putting pressure on the sterilization operations of the People’s Bank of China, he said.

The nation’s foreign-exchange reserves climbed $197 billion in the first quarter, reflecting global imbalances that Group of 20 finance ministers agreed last week to address through deeper scrutiny of their economic policies. China’s surging holdings are fueling inflation that accelerated last month to the highest in 32 months, prompting the government to boost banks’ reserve requirements this week for the fourth time this year.

“Foreign-exchange reserves have exceeded the reasonable levels that we actually need,” Zhou said. “The rapid increase in reserves may have led to excessive liquidity and has exerted significant sterilization pressure. If the government doesn’t strike the right balance with its policies, the build-up could cause big risks,” he said, without elaborating.

The world’s second-biggest economy grew 9.7 percent in the first quarter from a year earlier, faster than economists had forecast, and consumer prices climbed Read more…

Secretive Plan For a Global Currency

March 22, 2011 Comments off

www.globalresearch

Excerpt from “The Global Economic Crisis: The Great Depression of the XXI Century”
by Ellen Brown ~ Global Research
The following is an excerpt of a chapter by Ellen Brown from the new book by Global Research Publishers, “The Global Economic Crisis: The Great Depression of the XXI Century.” 

Michel Chossudovsky
Andrew Gavin Marshall (editors)

 

 

Help us get the word out, “like” the book on Facebook, comment, and share with friends!

By acting together to fulfill these pledges we will bring the world economy out of recession and prevent a crisis like this from recurring in the future. We are committed to take all necessary actions to restore the normal flow of credit through the financial system and ensure the soundness of systemically important institutions, implementing our policies in line with the agreed G20 framework for restoring lending and repairing the financial sector. We have agreed to support a general SDR allocation which will inject $250bn into the world economy and increase global liquidity.– G20 Communiqué, London, April 2, 2009

Towards a New Global Currency?

Is the Group of Twenty Countries (G20) envisaging the creation of a Global Central bank? Who or what would serve as this global central bank, cloaked with the power to issue the global currency and police monetary policy for all humanity? When the world’s central bankers met in Washington in September 2008 at the height of the financial meltdown, they discussed what body might be in a position to serve in that awesome and fearful role. A former governor of the Bank of England stated:

The answer might already be staring us in the face, in the form of the Bank for International Settlements (BIS)… The Read more…

F.D.I.C. Approves ‘Too Big to Fail’ Plan

March 16, 2011 Comments off

nytimes.com

A top banking regulator approved a plan to seize and unwind big banks — a proposal that will help address those “too big to fail” firms whose collapse could imperil the financial system.

The board of Federal Deposit Insurance Corporation voted unanimously on Tuesday to approve a set of proposed rules intended to create an orderly process to unwind large financial institutions. The rules outline how creditors can file a claim and how those claims will be addressed, hopefully bringing some clarity to a previously murky situation.

The vote moves the proposal into a 60-day public comment period, after which the agency will have to settle on final rules. The rule would apply to big banks, financial firms and large nonfinancial companies that pose a systemic risk to the broader economy.

“Today’s action is another significant step toward leveling the competitive playing field and enforcing market discipline on all financial Read more…

Hacker group Anonymous says it will release Bank of America emails

March 13, 2011 Comments off

heraldsun.com

The loose-knit hacker collective known as “Anonymous” plans to release emails obtained from Bank of America Corp. early today, an Anonymous-related Twitter feed said.

“[S]ee you guy’s Monday Morning 5am…London Time,” a post from the Twitter username OperationLeakS said.

“Meet my demands Release Pfc. Bradley Manning and I will remove every #BoA Employee from the Emails,” the feed said Saturday, referring to the US Army private accused of leaking sensitive US cables to WikiLeaks.

Manning is currently being held at the Quantico Marine base, outside Washington, D.C.

Anonymous is not officially affiliated with WikiLeaks, but members have previously targeted websites including PayPal, Amazon, Visa and the head office of the Swedish Prosecution Authority for hampering WikiLeaks’ activities.

WikiLeaks said in December 2010 that it would soon release information about banks and advised “that all people who love freedom close out their accounts at Bank of America,” prompting speculation that the bank would be the next target of a major WikiLeaks document dump.

Debit cards: $50 spending limit coming?

March 11, 2011 Comments off

cnn.com

Debit card limit By Blake Ellis, staff reporterMarch 10, 2011: 10:09 AM ET

NEW YORK (CNNMoney) — Declined! Your debit card may soon be denied for purchases greater than $100 — or even as little as $50.

JPMorgan Chase, one of the nation’s largest banks, is considering capping debit card transactions at either $50 or $100, according to a source with knowledge of the proposal.

Why? Because of a tricky thing called interchange fees.

Right now, every time you swipe your debit card, your bank charges the retailer an average fee of 44 cents, which it shares with its partners. Those little fees, however, add up to about $16 billion per year, according to 2009 data from the Federal Reserve.

But as part of the Wall Street reform legislation that was passed last year, these fees are being slashed. The Fed is currently proposing rules that would go into effect in July and would cap interchange fees at 12 cents.

That’s a big enough cut to cost Read more…

After the ecstasy of revolution, the Bankers quietly begin carving up Egypt and North Africa

February 26, 2011 Comments off

21stcenturywire.com

By Richard Eastman
21st Century Wire
Feb 25, 2011

The European Bank for Reconstruction and Development (EBRD) is ready to lend one billion EUROS a year to Egypt for reconstruction and “free-market reform”- even as Egypt’s Minister of Finance Samir Radwan has gone begging to the City of London bankers and the British Ministry of Trade and Investment  for relief on debt payments that are about to throw Egypt into bankruptcy.

All this, as Egypt has been such a good boy with regards to privatization and austerity, measures which awarded Egypt its celebrated 7 percent growth rate- mostly in investments that will end up in international hands as ventures fail to pay out with ever diminishing Egyptian domestic purchasing power.

FRESH CYCLES OF DEBT

First EBRD will lend at interest and build what they want backed by Egyptian collateral and the value of the projects themselves.  Then when it turns out they can’t make the debt payments because of all the interest we have sucked from them, we take over all of the assets we have developed.  That’s freedom and EBRD is really going to give it to them.  After all EBRD is  experienced at this.  In 1991 the EBRD was organized to financially lead  Russia and Eastern Europe in their transition from paternalistic socialism to sustainable  free-market economies open to international Read more…

Banks spying on your bills, rent payments, paychecks: report

February 25, 2011 Comments off

This article was published a few months ago, however, it is worth re-posting!

www.rawstory.com

The age of the plain old credit score is gone, says a report at the Wall Street Journal, and it’s been replaced by ever more intrusive efforts by banks and credit agencies to gauge exactly what you’re worth, and what you can pay.

To that end, financial firms are now tracking their customers’ bank deposits, rent payments or home values, and even utility bills to figure out who may soon become a financial risk, reports WSJ‘s Karen Blumenthal.

So, for example, if your employer pays you through direct deposits and those deposits stop, financial institutions can now have warning that your money situation is likely to tighten, and may deny you credit on that basis.

But the efforts don’t end there. A new area of research, income estimation, “took off earlier this year,” WSJ reports, and involves financial firms collecting information about mortgages, personal loans and credit history to determine how much an individual makes and how much credit they should be given.

In this new era of deep data-mining, even your utility bills and rent Read more…