Are you ready for this? stimulus 4

Discussion in 'Politics' started by bigrebnc1775, Sep 15, 2012.

  1. bigrebnc1775
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    bigrebnc1775 Diamond Member

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    Get ready for hyperinflation, and a devalued dollar. This will continue every month until further notice.

    Bernanke sets big stimulus in motion

    Fed to buy $40 billion of mortgage debt per month - Livemint


    The US Federal Reserve launched another aggressive stimulus programme on Thursday, saying it will buy $40 billion of mortgage-backed debt per month until the outlook for jobs improves substantially as long as inflation remains contained.
    In an unprecedented step, the Fed’s policymaking panel escalated its effort to drive US unemployment lower by tying its unconventional bond buying directly to economic conditions, a move that immediately sparked controversy among its critics.
    “If the outlook for the labor market does not improve substantially, the committee will continue its purchase of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability,” the Fed said in a statement.
     
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  2. Matthew
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    Matthew Blue dog all the way!

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    Forget it! Time to cut the government...
     
  3. bigrebnc1775
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    bigrebnc1775 Diamond Member

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    I have a better clue than these idiots do.:eusa_whistle:
     
  4. bigrebnc1775
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    bigrebnc1775 Diamond Member

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    Now we’re going to discover where money is created. The process works like this.

    Suppose Congress needs more money than it has. I know, that’s a stretch! Perhaps it has done something really historically foolish, like cutting taxes while conducting two wars at the same time. Now, Congress doesn’t actually have any money, so the request for additional spending gets passed over to the Treasury Department.

    You may be surprised, or dismayed, or perhaps neither, to learn that the Treasury Department lives hand-to-mouth and rarely has more than a couple of weeks’ of cash on hand, if that.

    So the Treasury Department, in order to raise cash, will print up a stack of Treasury bonds, which are the means by which the US government borrows money. A bond has a ‘face value,’ which is the amount it will be sold for, and it has a stated rate of interest that it will pay the holder. So if you bought a bond with $100 face value and that paid a rate of interest of 5%, then you’d pay $100 for this bond and get $105 back in a year.

    Crash Course Chapter 8: The Fed - Money Creation | Peak Prosperity
     
  5. bigrebnc1775
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    bigrebnc1775 Diamond Member

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    How Hyperinflation Will Happen


    Right now, we are in the middle of deflation. The Global Depression we are experiencing has squeezed both aggregate demand levels and aggregate asset prices as never before. Since the credit crunch of September 2008, the U.S. and world economies have been slowly circling the deflationary drain.


    To counter this, the U.S. government has been running massive deficits, as it seeks to prop up aggregate demand levels by way of fiscal “stimulus” spending—the classic Keynesian move, the same old prescription since donkey’s ears.

    But the stimulus, apart from being slow and inefficient, has simply not been enough to offset the fall in consumer spending.

    http://gonzalolira.blogspot.com/2010/08/how-hyperinflation-will-happen.html
     
  6. Rozman
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    Rozman Gold Member Supporting Member

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    I heard a story a while back regarding the FED...
    They don't care about inflation because they feel like they can combat that.
    What they feared was,and I'm sorry i don't remember the term.
    What they feared was a stagnation of the economy.
    So they will print money and borrow and spend because that was movement.
    If inflation happens they can take steps to take care of that.
     
  7. bigrebnc1775
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    bigrebnc1775 Diamond Member

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    These are not smart people, we do not need another recession or a double dip recession.
     
  8. editec
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    editec Mr. Forgot-it-All

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    The theory is that buying long term bonds supported by RE will free up some cash for new RE sales.

    As the third leg of the economy seems to be real estate and real estate sales are still feeble, they HOPE this will give the banks confidence to start refinancing folks with existing higher rate mortgages inbto lower rate mortgages.

    I doubt its enouh, but it's what the FED can do.
     
  9. Grampa Murked U
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    Grampa Murked U Diamond Member

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    Thank you Double Downgrade Obama
     
  10. SniperFire
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    SniperFire Senior Member

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    We are hosed.
     

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