Barron’s picked up Thursday’s Federal Reserve Responsibilities Outsourced to China:
"The Peoples Bank of China (PBOC) announced to day that they
are effectively taking over the interest rate responsibilities from the US
The Chinese Central Bankers announced that, effective
immediately, they are beginning a series of incremental rate hikes in the
United States. The first rate hike was for 10 basis points on the 30 year.
The Fed’s inability to significantly impact long rates
anymore is what led to the outsourcing.
Unlike the United States Federal Reserve, who hold interest
rate meetings monthly, the Chinese Bankers will now meet daily. Look for rate
announcements each day at noon…"
Whenever I write anything overtly snarky or tongue-in-cheek, I always wonder whether the sarcasm will be over-looked or misinterpreted. Based on the email, I’m glad to see that alot of people got it.
Fed Responsibilities Outsourced to China
Barron’s INVESTORS’ SOAPBOX AM
Saturday, July 23, 2005