tyb's
Merkel's Own Coalition Revolts: Lawmakers Seek Full Ban On Huawei Products
At a moment her coalition appears on the verge of collapsing, German Chancellor Angela Merkel is ready to go bat for Huawei even at the expense her own political legacy at the end of her fourth and final term as chancellor, no doubt partly in an effort to show up Trump.
This from Bloomberg a day after the controversial Chinese telecoms giant secured a commitment to build part of Germany’s 5G infrastructure through a deal with Telefónica SA, among the top three major mobile operators in Germany:
German Chancellor Angela Merkel is facing a potential revolt in parliament by lawmakers seeking to override her China policy and effectively ban equipment supplier Huawei Technologies Co. from the country’s fifth-generation wireless network. A new bill drafted by rebels within her ruling coalition who have for months been attempting to derail her open embrace of a company which under Chinese law is obliged to collaborate with the country's intelligence authorities, would give German authorities power to exclude “untrustworthy” 5G equipment vendors from “core as well as peripheral networks.” If made law it would mark the most far-reaching ban on Huawei products in the country.
Opponents to Merkel's 'softness' on China, amid her attempts to balance sensitive but vital relations with both Beijing and Washington, fear Germany's widespread embrace of Huawei. China hawks in her party charge that her reckless policy opens Germany and Europe more broadly to serious sabotage and spying risks. Two months ago Merkel brushed off an EU public report which warned as much as the 5G debate raged. Earlier this year Germany was also the first nation to rebuke Washington's diplomatic and pressure offensive to persuade allies to ban the Chinese supplier from high-speed telecommunications systems.
The Trump administration has told the German government it would limit the intelligence it shares with German security agencies if Berlin allows Huawei to build Germany’s next-generation mobile-internet infrastructure. would create a ripple effect across Europe that would only encourage other countries to follow suit.
Reports Bloomberg, "The draft legislation obtained by Bloomberg News says that security guidelines set out by Merkel’s government, which include a certification process and a declaration of trustworthiness, don’t go far enough." According to the report Huawei isn't mentioned specifically in the proposed legislation, but the language makes it clear who is being targeted, coming also at the height of tensions over China relations, including backlash from Beijing over the German FM's recent hosting of Hong Kong pro-independence activists.
https://www.zerohedge.com/economics/merkels-own-coalition-revolts-lawmakers-seek-full-ban-huawei-products
look into his background. His great grandfather was Alfred Loomis.
one thing lost in this is that it's not real currency. It is digital 0's and 1's. If it was going to leak into the real economy it would have already. BTW they have been averaging $100b a day. This is an ass-covering exercise for the primary dealers for YE accounting.
If you have ever heard the phrase "I have checks so I Must have money". Same thing.
Cap #2 is what this exercise is all about. Continuing the derivative game. It is paper assets layered over and over again. When it does not go their way they simply create moar paper assets to make it so.
Here is a little over 10% of the $500b they "announced" as being YUGE. In one day.
This is a broken record.
Follow along with the repo's here:
https://apps.newyorkfed.org/markets/autorates/temp
and the outright T-note purchases here:
https://www.newyorkfed.org/markets/pomo/operations
This is the "not QE" QE.
and there you have it
The Fed Has 'Absorbed' 90% Of Treasury Issuance Since September
Let’s look at a few of Chairman Powell’s words at yesterday’s press conference. Please read them and tell me whether this sounds to you like a man who doesn’t understand what he’s doing. Or if you think he’s deliberately pulling words out of his ass, stringing them together, and spewing them from his mouth in an effort to gaslight the investing public.
The Fed is in the propaganda business. It knows what it is doing.
Powell’s spew was in response to a question from the confused but affable Michael Mckee of Bloomberg, who no doubt served up the question on a suggestion from his Fed handlers.
McKee: The BIS concluded in September that the repo spike was not a one off confluence of random events but reflected structural and regulatory issues that could lead to a recurrence.
This is the utter nonsense that the Fed and Primary Dealers who own Wall Street want you to believe. The fact is that the dealers and banks could no longer continue to help finance the burgeoning Federal debt.
McKee: I’d like to ask you if you agree with the BIS findings and given that we are approaching year-end for the markets will you be taking any extra steps to ensure that funding is available in the repo and FX swaps markets.
There was a report yesterday, Credit Suisse suggesting there’s a good chance that we will see disruptions and one of the reasons they December 11, 2019 put it forward is that the Fed is at this point buying only T-bills and the market wants to sell coupons, do you have any plans to sell coupons?
I believe that McKee meant to ask if the Fed has any plans to buy coupons, not sell them. But his question was almost as nonsensical as Powell’s response, so it’s hard to know what he meant.
I put Powell’s stream of BS into paragraphs, in an attempt to make some sense of it. I have bolded statements that I felt were particularly absurd or critical
Powell: So, I’m going to take a little step back and I will get to your specific questions on the year-end and on T-bills.
So I guess I want to start by stressing that these are very important operational matters, but that are not likely to have any macroeconomic implications.
The Fed is pumping $145 billion per month into the system. That’s more than under QE One. Powell has said that it’s Not QE, and now says that it won’t have macroeconomic effects. Oh please. Humor me.
Powell: We’ve decided back in January to remain in an ample reserves regime…
The obvious question here is, “Why?” And the answer is that if they hadn’t reversed course from shrinking their balance sheet, the stock and bond markets would have crashed, and short term rates would have soared.
And something very bad would have happened to the US economy. In other words, there would have been macroeconomic second order effects. In fact, the money market freeze-up happened first, and the Fed started “Not QE” in September in instant response.
Powell: …and that means we’ll be setting the federal funds rate, the range for the federal funds rate, through our administered rates and not to active management of the level of reserves.
Gibberish.
Powell: We’re committed to robustly implementing that framework as you can see by our actions.
I’ll say. $435 billion in Not QE so far, since September 17.
Powell: And the purpose of all this, let’s remember, is to assure that our monetary policy decisions will be transmitted to the federal funds rate, which in turn affects other short-term rates. We have the tools to accomplish that and we will use them.
The purpose of all of this is not to eliminate all volatility particularly in the repo market.
No, the purpose is to absorb enough of US government debt issuance to keep rates down. As of right now, so far that has meant 90% of all new issuance.
The Fed is effectively monetizing the US government debt!
Powell: So taking you back this as you know we had, very gradually allowed the balance sheet to shrink, we slowed that gradual paced by half in March, and then we ended it in July.
key point here:
Prior to the Trump Regime and Congress lifting the debt ceiling, there was no pressure on the money markets because debt issuance was reduced while the debt ceiling was in place.
Powell: Meanwhile we had surveyed all of the banks, and particularly the large banks who hold a lot of the reserves and said what’s your lowest comfortable level of reserves? We got those numbers, we added them up, we added a buffer and it came out sort of at a level that was well below when we were in September.
And yet we saw actually in September that reserves– the markets acted as though reserves had become scarce.
They know damn well why it happened.
cap #2
rest at link
https://www.zerohedge.com/markets/fed-has-absorbed-90-treasury-issuance-september
are you on a different schedule now comrade?
chek'd
>'active' shooter - georgia
same shit different day. it's ridiculous.
thoughts out for those affected.
https://forums.anandtech.com/threads/jim-cramer-vs-leonard-the-wonder-monkey.2012671/