Dollar is increasingly backed by "junk"


	Dollar is increasingly backed by "junk"

deb2012

5-30-2008 8:48 AM

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tags:

monetary policy, economics

deb2012 says:

instead of U.S. treasuries

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/8ad35a66-73ed-40bf-ab0f-2ab8275f8c9a/030C43DD-829F-4C68-A0EC-0BAE2AB60B68/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.agorafinancial.com/5min/dollars-backed-by-mortgages-fed-gives-away-billions-why-opec-isnt-happy-gas-spikes-5-cents-and-more/" href="http://www.agorafinancial.com/5min/dollars-backed-by-mortgages-fed-gives-away-billions-why-opec-isnt-happy-gas-spikes-5-cents-and-more/" style="font-size: 11px;">www.agorafinancial.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.agorafinancial.com/5min/dollars-backed-by-mortgages-fed-gives-away-billions-why-opec-isnt-happy-gas-spikes-5-cents-and-more/">
<P class=BodyCopy align=left><STRONG>“Illiquid collateralized debt obligations — 
including mortgage-backed securities,”</STRONG> says our government stats 
watchdog <A 
href="http://www.shadowstats.com/">John Williams</A>, <STRONG>“now total in 
excess of 20% of the collateral backing the Federal Reserve Notes.” 
</STRONG></p> <P class=BodyCopy align=left>Yikes. One-fifth of the U.S. currency is backed by 
fetid CDOs. Think about that. </P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.agorafinancial.com/5min/dollars-backed-by-mortgages-fed-gives-away-billions-why-opec-isnt-happy-gas-spikes-5-cents-and-more/"><P align="left">“Since the onset of the banking solvency crisis and the establishment of various new lending facilities by the U.S. central bank, however, an increasing portion of the U.S. Treasury securities held as collateral has been lent to troubled financial institutions in exchange for largely illiquid collateralized debt obligations.”</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.agorafinancial.com/5min/dollars-backed-by-mortgages-fed-gives-away-billions-why-opec-isnt-happy-gas-spikes-5-cents-and-more/"><P align="left">“Those securities traditionally are U.S. Treasury securities.</P></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/030C43DD-829F-4C68-A0EC-0BAE2AB60B68/blog/" title="blog or email this clip"><img src="http://content6.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

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