Are you ready for this? stimulus 4

[bigrebnc1775]

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.

 

[ScienceRocks]

Forget it! Time to cut the government...

 

[bigrebnc1775]

Forget it! Time to cut the government...

I have a better clue than these idiots do.

 

[bigrebnc1775]

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

 

[bigrebnc1775]

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

 

[Rozman]

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.

 

[bigrebnc1775]

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.

These are not smart people, we do not need another recession or a double dip recession.

 

[editec]

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.

 

[Remodeling Maidiac]

Thank you Double Downgrade Obama

 

[SniperFire]

We are hosed.

 

[Mac1958]

.

Yeah, I was worried about how they were going to deal with the effects of QE2, now this.

They have to be planning to massively spike interest rates when the bond market crashes to stay ahead of the curve, and MAN that's risky. The man on the street doesn't know.

We're in uncharted territory here, as we have been since the meltdown.

.

 

[Imnukingfutz]

Well, we had the Stimulus, QE I, QE II and they didnt work...as many predicted. They only served to get us deeper into debt and line the pockets of large banks and special interests.

SO now they are going with QE III....more of the same failed economic stimulus...

The definition of crazy is doing the same thing over and over again expecting a different result.

 

[Katzndogz]

We are hosed.

We are. Clearly the democrats are too deluded to even know how bad it is going to get.

 

[Saigon]

Wonderful, wonderful posting.

So here we have Americans wailing about a policy which clearly they do not understand at all - otherwise they would know that it ha been used extensively during the past few years by conservatives around the world.

Really Big Reb, Sniper - if you do not understand the policy - why not ask why it is used before you condemn it?

If you were just a little bit smarrter you would realise that you are condemning policies that you would support if you undertood them.

Staggering ignorance, really.

 

[Katzndogz]

Wonderful, wonderful posting.

So here we have Americans wailing about a policy which clearly they do not understand at all - otherwise they would know that it ha been used extensively during the past few years by conservatives around the world.

Really Big Reb, Sniper - if you do not understand the policy - why not ask why it is used before you condemn it?

If you were just a little bit smarrter you would realise that you are condemning policies that you would support if you undertood them.

Staggering ignorance, really.

It is staggering ignorance, unfortunately yours. Understood around the world? In which pocket of ignorance. This newest round of funny money printing is the cause of our credit being downgraded! We know how it is working in Zimbabwe. What happens when you try to borrow with bad credit? Do you get favorable interest rates? Just you as an individual. No you don't. You pay outrageous interest rates and are happy to do it because you got some kind of credit.

This stimulus is going to do nothing but create a hyperinflation the likes of which we have never seen or experienced. Imagine hyperinflation during the Great Depression.

 

[Saigon]

Katz -

Well, let's see if you understand it - why do you think the administration has taken this step?

What is their motive?

 

[Saigon]

Ok, since you don't seem to know, let me explain that this policy is called Quantitative Easing.

Quantitative easing - Wikipedia, the free encyclopedia

"According to the IMF, the quantitative easing policies undertaken by the central banks of the major developed countries since the beginning of the late-2000s financial crisis have contributed to the reduction in systemic risks following the bankruptcy of Lehman Brothers. The IMF states that the policies also contributed to the improvements in market confidence and the bottoming out of the recession in the G-7 economies in the second half of 2009"

As the link explains, it has been used by the UK CONSERVATIVE party, by the Government of Japan, and by the European Central Bank as a means of injecting capital into the system. While it can add to inflation, given how low interest rates are right now, that should not be too major a concern.

I'd really like to think the three of you - NigReb, Katz and Sniper - would learn something from this, but I accept that none of you are wildly interested in anything other than whining about Obama to begin with.

 

[bigrebnc1775]

Katz -

Well, let's see if you understand it - why do you think the administration has taken this step?

What is their motive?

Hows your economy coming? Do us a favor and shut the fuck up?

 

[Saigon]

BigReb -

Excellent response.

Again - if you do not understand what quantitative easing is - why were you attacking it?

 

[bigrebnc1775]

Ok, since you don't seem to know, let me explain that this policy is called Quantitative Easing.

Quantitative easing - Wikipedia, the free encyclopedia

"According to the IMF, the quantitative easing policies undertaken by the central banks of the major developed countries since the beginning of the late-2000s financial crisis have contributed to the reduction in systemic risks following the bankruptcy of Lehman Brothers. The IMF states that the policies also contributed to the improvements in market confidence and the bottoming out of the recession in the G-7 economies in the second half of 2009"

As the link explains, it has been used by the UK CONSERVATIVE party, by the Government of Japan, and by the European Central Bank as a means of injecting capital into the system. While it can add to inflation, given how low interest rates are right now, that should not be too major a concern.

I'd really like to think the three of you - NigReb, Katz and Sniper - would learn something from this, but I accept that none of you are wildly interested in anything other than whining about Obama to begin with.

Explanation wiki style dumb ass I don't give a fuck what you call conservatives in Europe, they are still left of center compared to American Conservatives.