{"id":501,"date":"2008-06-27T22:58:33","date_gmt":"2008-06-28T06:58:33","guid":{"rendered":"http:\/\/www.cogwriter.com\/news\/?p=501"},"modified":"2008-06-27T11:17:02","modified_gmt":"2008-06-27T19:17:02","slug":"us-fed-causing-international-concern","status":"publish","type":"post","link":"https:\/\/www.cogwriter.com\/news\/prophecy\/us-fed-causing-international-concern\/","title":{"rendered":"US Fed Causing International Concern"},"content":{"rendered":"

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\nThe Strength of Dollars Have Long Been Part of the \u201cPride of the Power\u201d of the USA<\/em> (which will be broken per Leviticus 26:19)<\/em><\/p>\n

COGwriter<\/span><\/a><\/p>\n

Here are two financial news items of interest:<\/p>\n

Barclays warns of a financial storm as Federal Reserve’s credibility crumbles<\/span><\/h2>\n
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US central bank accused of unleashing an inflation shock that will rock financial markets, reports Ambrose Evans-Pritchard <\/span><\/strong><\/p>\n<\/div>\n

Telegraph, London<\/strong> – June 27, 2008<\/span><\/p>\n

Barclays Capital has advised clients to batten down the hatches for a worldwide financial storm<\/strong>, warning that the US Federal Reserve has allowed the inflation genie out of the bottle and let its credibility fall “below zero”.<\/span><\/p>\n

“We’re in a nasty environment,” said Tim Bond, the bank’s chief equity strategist. “There is an inflation shock underway. This is going to be very negative for financial assets. We are going into tortoise mood and are retreating into our shell. Investors will do well if they can preserve their wealth.”<\/p>\n

Barclays Capital said in its closely-watched Global Outlook that US headline inflation would hit 5.5pc by August and the Fed will have to raise interest rates six times by the end of next year to prevent a wage-spiral.<\/p>\n

If it hesitates, the bond markets will take matters into their own hands. “This is the first test for central banks in 30 years and they have fluffed it. They have zero credibility, and the Fed is negative if that’s possible. It has lost all credibility,” said Mr Bond. <\/span><\/p>\n

The grim verdict on Ben Bernanke’s Fed was underscored by the markets yesterday as the dollar fell against the euro following the bank’s dovish policy statement on Wednesday. <\/span><\/p>\n

Traders said the Fed seemed to be rowing back from rate rises. The effect was to propel oil to $138 a barrel, confirming its role as a sort of “anti-dollar” and as a market reproach to Washington’s easy-money policies. <\/span>http:\/\/www.telegraph.co.uk\/money\/main.jhtml?xml=\/money\/2008\/06\/27\/cnbarclays127.xml<\/span><\/p>\n

The Shrinking Influence of the US Federal Reserve<\/span><\/span><\/h2>\n

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Spiegel<\/strong> – June 26, 2008<\/span><\/span><\/p>\n

By Gabor Steingart in Washington<\/span><\/p>\n

Humiliation for Mr. Dollar: Ben Bernanke, the chairman of the United States Federal Reserve Bank, faces a general investigation by the International Monetary Fund. Just one more example of the Fed losing its power.<\/span><\/strong><\/p>\n