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Genesis Posts: 71432 Incept: 2007-06-26 
KD^2 
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http://market-ticker.org/archives/769-He....
---------- "The monetary base in ALL modern monetary systems is the sum of unencumbered assets against which one is both WILLING AND ABLE to borrow." - Me
2009-02-03 14:33:28
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Tesla Posts: 8180 Incept: 2008-04-03 
Delaware
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Heh Karl - what a treasure trove this time is for articles pointing out crimes and stupidities. Don't you think you would be bored if you were dealing with the markets and government in, say, 1958 ? ---------- "Neither the wisest Constitution nor the wisest laws will secure the liberty and happiness of a people whose manners are universally corrupt." Samuel Adams I'd rather die on my feet than live on my knees. - Emiliano Zapata
2009-02-03 14:36:37
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Mtgspy Posts: 6121 Incept: 2007-10-27
Online
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There are collateral requirements Karl. The swap lines collateral requirement is set by the borrower, in this case South Korea Central bank, kind of a delegated Debt-to-income appraisal.
---------- It sounds antiquated, merchantilistic - until you figured out that I was hoarding for war.
2009-02-03 14:41:49
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Genesis Posts: 71432 Incept: 2007-06-26
KD^2
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 ---------- "The monetary base in ALL modern monetary systems is the sum of unencumbered assets against which one is both WILLING AND ABLE to borrow." - Me
2009-02-03 14:42:50
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Stonedog Posts: 1105 Incept: 2008-05-29
New Jersey
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Did I miscount or are you up to 5 tickers today? Dude, you are totally on fire. And btw - totally awesome calling out Ben on the "temporary" nature of the currency swap program. I think that he believes that he can do whatever bc people can't remember what they did last week let alone what he did 6 months ago. Thank you for this website...and trying to keep them honest... ---------- "F**k CNBS, CONgress, Obama, the Democrats, the Republicans, the ratings agencies, the Banksters, the Fed, the FASB, all the government regulatory agencies, the Trilateral Commission, the Council of Foreign Relations, the G whatever, the UN, and any other bastard or big corporate interest that has a fingerprint on this
2009-02-03 15:05:55
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Alanha Posts: 2087 Incept: 2008-12-30
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One more and he ties the Steelers.
2009-02-03 16:47:34
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Capeman Posts: 2169 Incept: 2007-07-12
San Diego
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I'm not up on the physics of the currency swap lines but won't they act as a dollar vacuum if the currency of one of the borrowers collapses? Would it have the effect of making the dollar the unofficial only choice of reserve currency of the imploded country? If so there's a lot of global power the Fed will have as a cascade of economic implosions happen in these borrower countries and they have no choice but to use dollars instead of their native currencies. Let me know if I'm just way off on this. ---------- "I believe all God's creatures have a soul... except bears, bears are Godless killing machines!" - Steven Colbert
2009-02-03 17:03:22
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Phirang Posts: 8824 Incept: 2008-10-25 
bar khoba's revenge
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Capeman: no, you're actually quite spot on.
---------- The Treasury can issue debt on your behalf because the State can and will stomp the wealth out of you and your family.
2009-02-03 17:28:16
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Genesis Posts: 71432 Incept: 2007-06-26
KD^2
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Cape, it would actually kinda act like a dollar black hole, and the DX would go ape****. ---------- "The monetary base in ALL modern monetary systems is the sum of unencumbered assets against which one is both WILLING AND ABLE to borrow." - Me
2009-02-03 18:45:31
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Capeman Posts: 2169 Incept: 2007-07-12
San Diego
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If the Dollar actually absorbs the losses it would be a black hole. Wouldn't the scenario be more likely that the borrowers currency takes the loss and the Dollar fills a value void - some asset/value deflation process? Total global currency is finite and the value of it all is somewhat constant short term so when the value of the host currency crashes very quickly the value of the dollar rockets north as it fills the void (short term demand >>>> Supply). The effect of one occurence on the currency crosses could accelerate another currency to do the same very quickly, then the next and the next... then 
---------- "I believe all God's creatures have a soul... except bears, bears are Godless killing machines!" - Steven Colbert
2009-02-03 19:47:30
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