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

[Trajan]

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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[Revere]

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

 

[iamwhatiseem]

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.

 

[Zander]

The FED is pushing a string...

 

[California Girl]

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.

 

[Toro]

W00t!

Go go gold and silver!

 

[Trajan]

yup...

 

[iamwhatiseem]

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.

 

[Norman]

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.

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.

 

[loosecannon]

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

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.

 

[Trajan]

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.

no, but its a good hedge. not much left to be done....

 

[Trajan]

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

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.

its playing with cosmic fire....we should be backing out, not going all in. they said so themselves last year.....


don't forget were bernanke came from and in the end what he is.....greenspan, bernanke....this is why the fed should have been torpedoed way back when.......we gave them the power to put us in this position, as supplicants to their 'genius'.....

 

[iamwhatiseem]

It is insane.
I liken it to the logic of a chronic gambler; no matter how many times he loses he continues to gamble...always thinking that the next bet will be the one where he wins.

 

[Toro]

It is insane.
I liken it to the logic of a chronic gambler; no matter how many times he loses he continues to gamble...always thinking that the next bet will be the one where he wins.

I'd take the money and spend it on one of those girls in your avatar.

"Hey baby. I'm the Fed Chairman. I can make money grow on trees. Wanna see how big my QE2 is?"

 

[uscitizen]

sure it can I traded 1 gold eagle for 3 nice heifers early this year.
2 of them about ready to drop calves. All 5 are now doing fine and the 3rd one will drop soon.

I hope it does not look like Samson.

 

[Samson]

W00t!

Go go gold and silver!

I swear to god, if I bought $10,000 in silver tomorrow, the market would fall out.

I'm pretty sure I have magic powers.

 

[antagon]

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

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.

in light of this behavior, money supplies need to be reorganized. this sort of shit is not real money in my opinion. so little of it gets converted to greenbacks it is a joke. immediately it becomes market noise which digital arbitrageurs spin into gold, then euros, yen, then S&P then... another 40 seconds passes. gotta do something, i guess. perhaps if it is coming out of their ears, some may fall on the street.

i've not been impressed by the penetration of the first $1.7T. take notes: jobless recovery and cashless quantitative easing.

if this $2.xx trillion was fiscal remedy, we'd be set. some whackjob would assassinate some of our lawmakers, but we would not be in the same shithole economy we're in. same effect on the bottom line.

 

[loosecannon]

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

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.

in light of this behavior, money supplies need to be reorganized. this sort of shit is not real money in my opinion. so little of it gets converted to greenbacks it is a joke. immediately it becomes market noise which digital arbitrageurs spin into gold, then euros, yen, then S&P then... another 40 seconds passes. gotta do something, i guess. perhaps if it is coming out of their ears, some may fall on the street.

i've not been impressed by the penetration of the first $1.7T. take notes: jobless recovery and cashless quantitative easing.

if this $2.xx trillion was fiscal remedy, we'd be set. some whackjob would assassinate some of our lawmakers, but we would not be in the same shithole economy we're in. same effect on the bottom line.

That's kinda what I am getting at by calling it voodoo monetarism. It didn't work in Japan, it didn't work (well anyway) with QE1, but they seem to have fine tuned the formula quite a bit.

You said something about it earlier, Money forcefully extruded into the system is a different specie. And a lot of it never reaches the ground.

The neomonetarist universe is kinda like string theory. It exists in dimensions that we can't even observe much less have confidence in.

It's like the fed is busy trying to fix an economy that orbits the Earth. In the financialsphere. Not on the goods and services Earth.

Down here on earth we just want f**king jobs so we can stimulate demand and resurrect an economy we can understand.

 

[Oddball]

Fed to Print Up $600 Billion More To Help Destroy the USD

Fixed.

 

[william the wie]

It is insane.
I liken it to the logic of a chronic gambler; no matter how many times he loses he continues to gamble...always thinking that the next bet will be the one where he wins.

I'd take the money and spend it on one of those girls in your avatar.

"Hey baby. I'm the Fed Chairman. I can make money grow on trees. Wanna see how big my QE2 is?"

Ooh when your wife or worse yet your daughter runs across this post I want to see that.