Fed to scale back bond buying

Who said that the US is the world's central bank? The Fed never says that. Neither does the U.S. The rest of the world can't just give the US the title and expect the US to give up its own interest to protect others'. It simply does not make sense.

The USD is chosen by the rest of the world as the "reserve currency" status because the US is the most powerful economy in the world and the Fed is the best central bank in the world and the USD is the most liquid. If the rest of the world would like another currency to be the so called "reserve currency". They are free to do so. The Thai and the Singapore can trade in SGD or Thai Baht or Japanese Yen, or Chinese Yuan if they deem fit. No one can force otherwise.

Please read my post correctly. I never said that the stocks are cheap, I merely said that they not expensive. There is a huge difference. And cheap is a subjective word, there is no point to argue whatsoever.

(19-12-2013, 05:53 PM)Antifragility Wrote:

(19-12-2013, 02:44 PM)freedom Wrote: What borrowing from the future? Did/does the Fed borrow? Hell NO!

The Fed creates money, it does not borrow.

Please understand the Fed before judging them.

If the Fed can create money seemingly without limits, why aren't all of us multi-millionaires?

Because the Fed are sensible. They have a mandate from the Congress to prevent runaway inflation.

Please read my earlier post about the functions of the Fed.

(19-12-2013, 05:46 PM)Antifragility Wrote:

(19-12-2013, 04:47 PM)freedom Wrote: First I did not call Bernanke the greatest economist, but one of the greatest economists. It's not subjective as you can see from all the economy policies he implements. It works and helps the US economy from the recession. If that's not enough for one of the greatest, I don't know what makes one.

Secondly, it is easy to blame others for their own mistakes. The QE is implemented in US. If it effects other parts of the world, it is up to other parts of the world to prevent it from happening. The Fed does not have responsibilities to the rest of the world. You can blame it for all the evils, but it does not have your interest at all. As for the bankrupted Singaporeans, I can't say that it is because the QE or the US. It is up to each and everyone of them to decide their financial future, not the Fed or the US. Neither the Fed or the US forces Singaporeans to invest into structure deposits linked to Lehman Brothers. If it is a blame game, we can all blame why there is a human race.

Clearly there is no reasoning that is enough for your extremist attitude, so I shall save my breath.

Any reasonable people will not blame the Fed or the US for their misfortune. It does not make much sense in the above scenarios.

If there is no rational, there is nothing extreme any more.

My layman's understanding is since USA's QE, a million Sing$ can not even buy a 800-900 sq ft FH condo in Singapore. Someone has made my Sing $1,000,000.00 maybe worth only $750,000.00 only or less. But no one also borrow any money from me leh!
So what about other countries? Don't they follow suit?

(19-12-2013, 03:15 PM)freedom Wrote: The Fed has its freedom and right to create as much as USD as it deems fit. The Fed does not direct other central banks for their monetary policies.

That would be correct if the dollar wasn't the reserve currency of the world. Debasing the reserve currency of the world is no different from a stealth default.

(19-12-2013, 06:41 PM)Temperament Wrote: My layman's understanding is since USA's QE, a million Sing$ can not even buy a 800-900 sq ft FH condo in Singapore. Someone has made my Sing $1,000,000.00 maybe worth only $750,000.00 only or less. But no one also borrow any money from me leh!
So what about other countries? Don't they follow suit?

And what does the Fed has to do with the price of condo in Singapore? The Fed can't control that. The Fed didn't direct Singapore government to offer less land to build fewer condos. Singapore government could have provided enough land to build many many condos to make the condo so cheap that everyone in Singapore could have one. But then they are robbing the national reserve. Haha.

(19-12-2013, 07:07 PM)lilvestor Wrote:

(19-12-2013, 03:15 PM)freedom Wrote: The Fed has its freedom and right to create as much as USD as it deems fit. The Fed does not direct other central banks for their monetary policies.

That would be correct if the dollar wasn't the reserve currency of the world. Debasing the reserve currency of the world is no different from a stealth default.

The Fed never acknowledges that USD is the reserve currency of the world. You can't just offer someone a title and expect him to honor it unless he accepts it.

(19-12-2013, 07:14 PM)freedom Wrote:

(19-12-2013, 07:07 PM)lilvestor Wrote:

(19-12-2013, 03:15 PM)freedom Wrote: The Fed has its freedom and right to create as much as USD as it deems fit. The Fed does not direct other central banks for their monetary policies.

That would be correct if the dollar wasn't the reserve currency of the world. Debasing the reserve currency of the world is no different from a stealth default.

The Fed never acknowledges that USD is the reserve currency of the world. You can't just offer someone a title and expect him to honor it unless he accepts it.

You are wrong. Bernanke (and perhaps Greenspan) have talked about this publicly, he has definitely acknowledged this fact.

Proof that Freedom is wrong:

Quote:WASHINGTON, Feb 27 (Reuters) - Below are highlights from the question and answer session of a House Financial Services Committee hearing on Wednesday with Federal Reserve Chairman Ben Bernanke testifying on monetary policy and the U.S. economy.

BERNANKE ON DOLLAR AS RESERVE CURRENCY:

"I don't see any sign that that's happening (the U.S. dollar losing status
as world's reserve currency). The amount of reserves held in dollars is actually growing, not shrinking. I think that reserve currency status at least for the foreseeable future is very much intact."

The world is being held hostage by the FED and their irresponsible monetary policies, Bernanke knows it, and he is not ashamed to exploit it.

(19-12-2013, 07:32 PM)lilvestor Wrote: Proof that Freedom is wrong:

Quote:WASHINGTON, Feb 27 (Reuters) - Below are highlights from the question and answer session of a House Financial Services Committee hearing on Wednesday with Federal Reserve Chairman Ben Bernanke testifying on monetary policy and the U.S. economy.

BERNANKE ON DOLLAR AS RESERVE CURRENCY:

"I don't see any sign that that's happening (the U.S. dollar losing status
as world's reserve currency). The amount of reserves held in dollars is actually growing, not shrinking. I think that reserve currency status at least for the foreseeable future is very much intact."

The world is being held hostage by the FED and their irresponsible monetary policies, Bernanke knows it, and he is not ashamed to exploit it.

Yeah, yeah, yeah, I am wrong. I would look at it this way. The Fed or Bernanke admits the fact that USD is the de facto reserve currency,(denying it equals denying facts) but obviously, the Fed does not take any responsibilities of it. If that's what so called acknowledgement, the world must be full of fools who put their financial future on someone that does not care about them.

The Fed did nothing wrong or irresponsible(it has no responsibility whatsoever to the rest of the world). It is the rest of the world that are fools who trust someone without their interest.