Liquidity

http://www.theaustralian.news.com.au/story/0,24897,22263613-643,00.html

THE telephones have been running hot between central bank governors but there has been no co-ordinated effort to bring the global liquidity squeeze under control.

Reserve Bank governor Glenn Stevens said yesterday he had held discussions with several of his foreign counterparts over the past week to see what was going on.

"But there isn't any co-ordinated activity that I'm aware of that is going on among the central banks," he said.

"There is just routine information sharing."

Testifying before the House of Representatives Economics Committee, he said central banks in the Asia-Pacific region were in contact on a daily basis and this had been taking place "with more intensity than normal".

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It seems that the Federal Reserve's willingness to pump in/lend money is a deviation from market, and propping up a seemingly dangerous loan. However, the authority to print money at their leisure comes from them, illegitimately, while the labor is 'ours'. This seems to mean that they set the price of our labor, and decide whom to loan money to. They have the responsibility of managing the system to maintain itself, but they choose how and for whom it profits, and if they choose, when to replace or end this system. These are our liberties.

I'd rather see a tightening than a hemorraghing. And more than that, I'd rather see market strength and justice.

This, also, is quite clearly the reduction in liquidity that Carlyle Group was discussing.