Fed to Spend $600 Billion More To Help Boost US Economy

Discussion in 'Economy' started by Trajan, Nov 3, 2010.

  1. Trajan
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    Trajan conscientia mille testes

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    I don't see this as being helpful, at all. This sort goes with my proviso ala the dollar in Williams Bond thread.
    I see this as walking further into the abyss.




    The Federal Reserve launched a controversial new policy on Wednesday, committing to buy $600 billion more in government bonds by the middle of next year in an attempt to breathe new life into a struggling U.S. economy.
    Sheet of US one hundred dollar bills


    The decision, which takes the Fed into largely uncharted waters, is aimed at further lowering borrowing costs for consumers and businesses still suffering in the aftermath of the worst recession since the Great Depression.

    The U.S. central bank said it would buy about $75 billion in longer-term Treasury bonds per month. It said it would regularly review the pace and size of the program and adjust it as needed depending on the path of the recovery.

    In its post-meeting statement, the Fed described the economy as "slow", and said employers remained reluctant to add to payrolls. It said measures of inflation were "somewhat low."

    "Although the committee anticipates a gradual return to higher levels of research utilization in a context of price stability, progress toward its objectives has been disappointingly slow," the Fed said. (Click here to read Fed statement.)



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  2. Revere
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    Revere BANNED

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    Print money until the debt starts being eaten away by inflation, methinks, and give banks cheap loans to artifically prop up the stock market.
     
  3. iamwhatiseem
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    iamwhatiseem Gold Member

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    Gotta keep that stock market above 10,000 you know.
    Can't have pesty reality getting in the way of financial giants staying in business.

    This is one thing the new congress can't do much about.
     
  4. Zander
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    Zander Platinum Member

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    The FED is pushing a string...
     
  5. California Girl
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    California Girl BANNED

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    Haven't 'we' just printed ourselves another $1 trillion?

    YAY! Let's be Zimbabwe!

    My advice: buy a really big wheelbarrow. We're gonna need them to carry around enough spare change.
     
  6. Toro
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    Toro Diamond Member

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    W00t!

    Go go gold and silver!
     
  7. Trajan
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    Trajan conscientia mille testes

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    yup...
     
  8. iamwhatiseem
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    iamwhatiseem Gold Member

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    Gold and Silver can't buy groceries pals.

    On a larger note...this is why I am still out of the market.
    It is a figment, a mirage...it is so far from reality that a significant adjustment will happen, in fact must happen. And when it starts. it will domino down into depths we have not seen in since the 70's.

    The only thing America has to offer the world anymore IS the dollar. Besides that we have no real value unless Europe wants to pay us for protecting them militarily.
     
  9. Norman
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    Norman Gold Member

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    I think you got great business idea right there! You need some place to store the money that is coming out of Ben's helicopter anyway.
     
  10. loosecannon
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    loosecannon Senior Member

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    and reinflate more bubbles. As well as make US products more competitive on the global markets, and rescue the real estate market and force China to break the peg or suffer inflation.

    I am dubious only because this kind of thing did Jack shit to help the Japanese escape a deflationary trap.

    But no matter what happens a weaker dollar will return benefits, if they can weaken the dollar further.

    In my gut this kind of voodoo monetarism feels like the Fed is on acid. Or they have escaped into the twilight zone. This isn't economics, it is reverse alchemy.
     

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