Skybird
09-12-07, 06:43 AM
I translated this website's text via Babelfish, since it has a lot of specific business terms and language I have extreme problems to adequately translate. So the text is queer and distorted, but gives you an idea of what it is about. Use the included links which lead to English-language sources
While the financial markets used US government loans in August as safe port, threw foreign issuing banks Treasuries in the value of 46.1 billion US dollar on the market.
According to a statistics (http://babelfish.altavista.com/babelfish/trurl_pagecontent?lp=de_en&trurl=http%3a%2f%2fwww.federalreserve.gov%2freleas es%2fh41%2fCurrent%2f) (1) of the US issuing bank Fed foreign issuing banks and governments sold between 25 July and 5 September US government loans, which are kept in their order of the Fed, in the volume of net 46.1 billion dollar. That is the largest outlet, since the Fed publishes these data and prozentuell also minus 3,8 per cent the strongest decrease since 1992.
The Fed holds at present altogether still 1.207 trillion USD by US government loans for foreign issuing banks, after 574 billion still in June 2004. However the recent numbers confirm a trend, which is to be observed already longer. Japan, the largest investor in US debts, diminishes for example according to the financial information agency Bloomberg its existence already for three years, held in June however still 612 billion USD. In addition, China has its US Treasurys in 2. Quarter around 3,4 per cent on 405 billion USD reduces. That was justified officially naturally not with rising distrust in relation to the dollar, but with the search for higher net yields and the regrouping in funds, which on dollar basis also in shares, real estates and raw materials to invest to be supposed.
The consequences for the US economy could be however serious. The more and Taiwan its Treasury existence in the past year around ten per cent on 57,5 billion USD took back, of it five billion alone in August, while South Korea its this year even already by 25 per cent to 50 billion USD reduced existence. Around approximately five billion USD in August by the way also from the Fed existence treuhaendisch held of loans of the "State in such a way specified Sponsored Enterprises" were diminished, which enormous mortgage banks fan never Mae and Freddie Mac, from which the Fed at present regards still another volume of 773 billion USD as foreign issuing bank.
The decrease of the foreign Treasury existence continues to be not amazing, because like Bloomberg ( 2), foreign dollar investors enumerate (http://babelfish.altavista.com/babelfish/trurl_pagecontent?lp=de_en&trurl=http%3a%2f%2fwww.bloomberg.com%2fapps%2fnews %3fpid%3d20601103%26sid%3daLv4kVv3l.j8%26refer%3dn ews)in the past two months by the course purge dollar recently high losses brought in. The dollar index New York board OF trade, that the value dollar opposite Yen, euro, British Pound, Canadian dollar, which measures Swedish crown and Swiss Franconia, fell last with 79.826 counters nevertheless on the deepest conditions for 15 years, whereby the US foreign exchange lost eight per cent alone opposite the Japanese Yen in the last two months. The courses were driven the "escape crisis-conditioned by 10jaehrigen US government loans in the same period of into the quality" by five per cent up, which the issuing banks might have arranged however only to still more extensive sales.
For the US economy being missing foreign bond purchases might have medium-term serious consequences anyhow. Like that are after one of the Fed published study (http://babelfish.altavista.com/babelfish/trurl_pagecontent?lp=de_en&trurl=http%3a%2f%2fwww.federalreserve.gov%2fpubs%2 fifdp%2f2005%2f840%2fifdp840.pdf) (3) the foreign Treasury purchases mainresponsible for the low long-term zinsniveau in the USA. Therefore the interest rate for 10jaehrige US government loans without the official bond purchases would lie by 0,9 per cent more highly. Even if the international private sector would do without US papers, the long period interest would lie even by 1,5 per cent more highly, which would increase the credit rates of American Hypothekarschuldner on average monthly by 158 dollar. Because in the daily trade the prices of debts of different quality at their conditions determine themselves among themselves. Because the markets set the probability of a payment loss at the government with practically zero, a liquid US government loan with the appropriate characteristic ("bench mark loan") forms the computation basis for all long-term credits in the dollar area in each run-time segment. Accordingly about also the enterprise loans would increase in price, which might increase the financing expenses of the US economy by nearly a quarter.
The reasons for the dollar break-down obviously lie in the enormous externaleconomical unequal weights. Like Fed boss Bernanke in Berlin explained (http://babelfish.altavista.com/babelfish/trurl_pagecontent?lp=de_en&trurl=http%3a%2f%2fwww.federalreserve.gov%2fnewsev ents%2fspeech%2fbernanke20070911a.htm) (4), the US deficit on the balance of payments on current account required of in the previous year 812 billion USD (6.2 per cent US GROS DOMESTIC PRODUCT) last annualisiert on 770 billion USD decreased/went back, its financing however nevertheless daily more to than two billion USD at foreign dollar investments. Only one quarter of it is made available according to Bernanke however by foreign issuing banks, three quarters however by the private sector. Now it is to be pointed in view of the recent problems with many US credit products not completely from the hand to that also the private investors will increasingly refuse to finance the US deficits. Statistically this would become clearly visible only with some delays, the consequences for the dollar external value might have to be noticed however already now.
(1) http://www.federalreserve.gov/releases/h41/Current/
(2) http://www.bloomberg.com/apps/news?pid=20601103&sid=aLv4kVv3l.j8&refer=news
(3) http://www.federalreserve.gov/pubs/ifdp/2005/840/ifdp840.pdf
(4) http://www.federalreserve.gov/newsevents/speech/bernanke20070911a.htm
While the financial markets used US government loans in August as safe port, threw foreign issuing banks Treasuries in the value of 46.1 billion US dollar on the market.
According to a statistics (http://babelfish.altavista.com/babelfish/trurl_pagecontent?lp=de_en&trurl=http%3a%2f%2fwww.federalreserve.gov%2freleas es%2fh41%2fCurrent%2f) (1) of the US issuing bank Fed foreign issuing banks and governments sold between 25 July and 5 September US government loans, which are kept in their order of the Fed, in the volume of net 46.1 billion dollar. That is the largest outlet, since the Fed publishes these data and prozentuell also minus 3,8 per cent the strongest decrease since 1992.
The Fed holds at present altogether still 1.207 trillion USD by US government loans for foreign issuing banks, after 574 billion still in June 2004. However the recent numbers confirm a trend, which is to be observed already longer. Japan, the largest investor in US debts, diminishes for example according to the financial information agency Bloomberg its existence already for three years, held in June however still 612 billion USD. In addition, China has its US Treasurys in 2. Quarter around 3,4 per cent on 405 billion USD reduces. That was justified officially naturally not with rising distrust in relation to the dollar, but with the search for higher net yields and the regrouping in funds, which on dollar basis also in shares, real estates and raw materials to invest to be supposed.
The consequences for the US economy could be however serious. The more and Taiwan its Treasury existence in the past year around ten per cent on 57,5 billion USD took back, of it five billion alone in August, while South Korea its this year even already by 25 per cent to 50 billion USD reduced existence. Around approximately five billion USD in August by the way also from the Fed existence treuhaendisch held of loans of the "State in such a way specified Sponsored Enterprises" were diminished, which enormous mortgage banks fan never Mae and Freddie Mac, from which the Fed at present regards still another volume of 773 billion USD as foreign issuing bank.
The decrease of the foreign Treasury existence continues to be not amazing, because like Bloomberg ( 2), foreign dollar investors enumerate (http://babelfish.altavista.com/babelfish/trurl_pagecontent?lp=de_en&trurl=http%3a%2f%2fwww.bloomberg.com%2fapps%2fnews %3fpid%3d20601103%26sid%3daLv4kVv3l.j8%26refer%3dn ews)in the past two months by the course purge dollar recently high losses brought in. The dollar index New York board OF trade, that the value dollar opposite Yen, euro, British Pound, Canadian dollar, which measures Swedish crown and Swiss Franconia, fell last with 79.826 counters nevertheless on the deepest conditions for 15 years, whereby the US foreign exchange lost eight per cent alone opposite the Japanese Yen in the last two months. The courses were driven the "escape crisis-conditioned by 10jaehrigen US government loans in the same period of into the quality" by five per cent up, which the issuing banks might have arranged however only to still more extensive sales.
For the US economy being missing foreign bond purchases might have medium-term serious consequences anyhow. Like that are after one of the Fed published study (http://babelfish.altavista.com/babelfish/trurl_pagecontent?lp=de_en&trurl=http%3a%2f%2fwww.federalreserve.gov%2fpubs%2 fifdp%2f2005%2f840%2fifdp840.pdf) (3) the foreign Treasury purchases mainresponsible for the low long-term zinsniveau in the USA. Therefore the interest rate for 10jaehrige US government loans without the official bond purchases would lie by 0,9 per cent more highly. Even if the international private sector would do without US papers, the long period interest would lie even by 1,5 per cent more highly, which would increase the credit rates of American Hypothekarschuldner on average monthly by 158 dollar. Because in the daily trade the prices of debts of different quality at their conditions determine themselves among themselves. Because the markets set the probability of a payment loss at the government with practically zero, a liquid US government loan with the appropriate characteristic ("bench mark loan") forms the computation basis for all long-term credits in the dollar area in each run-time segment. Accordingly about also the enterprise loans would increase in price, which might increase the financing expenses of the US economy by nearly a quarter.
The reasons for the dollar break-down obviously lie in the enormous externaleconomical unequal weights. Like Fed boss Bernanke in Berlin explained (http://babelfish.altavista.com/babelfish/trurl_pagecontent?lp=de_en&trurl=http%3a%2f%2fwww.federalreserve.gov%2fnewsev ents%2fspeech%2fbernanke20070911a.htm) (4), the US deficit on the balance of payments on current account required of in the previous year 812 billion USD (6.2 per cent US GROS DOMESTIC PRODUCT) last annualisiert on 770 billion USD decreased/went back, its financing however nevertheless daily more to than two billion USD at foreign dollar investments. Only one quarter of it is made available according to Bernanke however by foreign issuing banks, three quarters however by the private sector. Now it is to be pointed in view of the recent problems with many US credit products not completely from the hand to that also the private investors will increasingly refuse to finance the US deficits. Statistically this would become clearly visible only with some delays, the consequences for the dollar external value might have to be noticed however already now.
(1) http://www.federalreserve.gov/releases/h41/Current/
(2) http://www.bloomberg.com/apps/news?pid=20601103&sid=aLv4kVv3l.j8&refer=news
(3) http://www.federalreserve.gov/pubs/ifdp/2005/840/ifdp840.pdf
(4) http://www.federalreserve.gov/newsevents/speech/bernanke20070911a.htm