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

The FED is pushing a string...

But...

This is still inflationary, and bullish for commodities and stocks.

At some point, you have to stop fighting it and let the Fed's actions make you some damn money :D
 
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.

My wife thinks I'm wasting my time here.





I tend to agree with her.
 
The FED is pushing a string...

But...

This is still inflationary, and bullish for commodities and stocks.

At some point, you have to stop fighting it and let the Fed's actions make you some damn money :D

That's kinda the point..isn't it?

Heat up the economy..eventually raise interest rates?

Uh, yeah, except for that little inescapable fact that the Fed hasn't yet figured out how to make that work without fucking us.

Just because asset prices are rising, doesn't mean they are fixing anything.

Joe Main Street just getting by on a weekly basis doesn't give a fuck about stock prices.
 
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But...

This is still inflationary, and bullish for commodities and stocks.

At some point, you have to stop fighting it and let the Fed's actions make you some damn money :D

That's kinda the point..isn't it?

Heat up the economy..eventually raise interest rates?

Uh, yeah, except for that little inescapable fact that the Fed hasn't yet figured out how to make that work without fucking us.

Just because asset prices are rising, doesn't mean they are fixing anything.

Joe Main Street just getting by on a weekly basis doesn't give a fuck about stock prices.

This should do a lot for Joe, but it will erode his purchasing power for imported goods and commodities.
 
That's kinda the point..isn't it?

Heat up the economy..eventually raise interest rates?

Uh, yeah, except for that little inescapable fact that the Fed hasn't yet figured out how to make that work without fucking us.

Just because asset prices are rising, doesn't mean they are fixing anything.

Joe Main Street just getting by on a weekly basis doesn't give a fuck about stock prices.

This should do a lot for Joe, but it will erode his purchasing power for imported goods and commodities.

Let's not pretend that domestic goods aren't going to break his bank.

Food and energy are the ones that matter most domestically, and they aren't getting any cheaper right now.
 
Uh, yeah, except for that little inescapable fact that the Fed hasn't yet figured out how to make that work without fucking us.

Just because asset prices are rising, doesn't mean they are fixing anything.

Joe Main Street just getting by on a weekly basis doesn't give a fuck about stock prices.

This should do a lot for Joe, but it will erode his purchasing power for imported goods and commodities.

Let's not pretend that domestic goods aren't going to break his bank.

Food and energy are the ones that matter most domestically, and they aren't getting any cheaper right now.

But his mortgage will be cheaper, his debt easier to pay, he will be more likely to find employment and the state he lives in, even the nation he lives in won't go bust serving their debt. His SS might not default as well and his own mortgage might rise above water.

The upsides far outweight the downsides, esp since the downsides are inevitable either way.
 
This should do a lot for Joe, but it will erode his purchasing power for imported goods and commodities.

Let's not pretend that domestic goods aren't going to break his bank.

Food and energy are the ones that matter most domestically, and they aren't getting any cheaper right now.

But his mortgage will be cheaper, his debt easier to pay, he will be more likely to find employment and the state he lives in, even the nation he lives in won't go bust serving their debt. His SS might not default as well and his own mortgage might rise above water.

The upsides far outweight the downsides, esp since the downsides are inevitable either way.

And what of those who don't have much debt?

Our debt is a PROBLEM, to which more inflation is not a solution.

I don't have much debt, so my purchasing power erodes, but I should feel warm and fuzzy inside knowing that some moron who bought too much house can now possibly afford to see his way out of his mistake.

More inflation, btw, does not necessarily equal more jobs.

Not to mention, someone with a ton of debt, who now has to pay 50% more for a lot of his food and energy, might not necessarily realize the supposed 'benefit' of a weaker dollar.

With all due respect, I have a hard time wrapping my brain around the idea that inflation is good. I don't know where you people come up with this crap.
 
Let's not pretend that domestic goods aren't going to break his bank.

Food and energy are the ones that matter most domestically, and they aren't getting any cheaper right now.

But his mortgage will be cheaper, his debt easier to pay, he will be more likely to find employment and the state he lives in, even the nation he lives in won't go bust serving their debt. His SS might not default as well and his own mortgage might rise above water.

The upsides far outweight the downsides, esp since the downsides are inevitable either way.

And what of those who don't have much debt?

Our debt is a PROBLEM, to which more inflation is not a solution.

I don't have much debt, so my purchasing power erodes, but I should feel warm and fuzzy inside knowing that some moron who bought too much house can now possibly afford to see his way out of his mistake.

More inflation, btw, does not necessarily equal more jobs.

Not to mention, someone with a ton of debt, who now has to pay 50% more for a lot of his food and energy, might not necessarily realize the supposed 'benefit' of a weaker dollar.

With all due respect, I have a hard time wrapping my brain around the idea that inflation is good. I don't know where you people come up with this crap.

This "crap" is conventional wisdom shared by economists across the globe.

Whether you like it or not Americans need to take a standard of living cut because globalization and our eroding global strength demand it.

Inflation = a stealth wage cut. That's the bad news. It also = an erosion of purchasing power. But wage cuts and PP erosion are inevitable.

That reduced wage allows the productivity you represent to become competitive with global productivity/wage standards, meaning we might be able to compete in industries we are outsourcing today.

The falling dollar should hasten the bottoming and recovery of the RE market, ending the defaults, rescuing the banks and keeping people in their homes, even expanding their equity.

And inflation definitely makes debt more affordable because you repay it with worthless dollars.

This is such standard wisdom that all the world is trying to devalue their currencies: China by pegging the yuan to the dollar, the EU by promoting the PIIGS panic, the US by launching QEII, and Japan has been trying to weaken the yen for 25 years to combat deflation!

This is as mainstream an idea as exists!

It is so mainstream that it has been our econ policy since WWII, we call it monetarism. And virtually everybody on the planet operates under the same econ dogma.
 
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But his mortgage will be cheaper, his debt easier to pay, he will be more likely to find employment and the state he lives in, even the nation he lives in won't go bust serving their debt. His SS might not default as well and his own mortgage might rise above water.

The upsides far outweight the downsides, esp since the downsides are inevitable either way.

And what of those who don't have much debt?

Our debt is a PROBLEM, to which more inflation is not a solution.

I don't have much debt, so my purchasing power erodes, but I should feel warm and fuzzy inside knowing that some moron who bought too much house can now possibly afford to see his way out of his mistake.

More inflation, btw, does not necessarily equal more jobs.

Not to mention, someone with a ton of debt, who now has to pay 50% more for a lot of his food and energy, might not necessarily realize the supposed 'benefit' of a weaker dollar.

With all due respect, I have a hard time wrapping my brain around the idea that inflation is good. I don't know where you people come up with this crap.

This "crap" is conventional wisdom shared by economists across the globe.

Whether you like it or not Americans need to take a standard of living cut because globalization and our eroding global strength demand it.

Inflation = a stealth wage cut. That's the bad news. It also = an erosion of purchasing power. But wage cuts and PP erosion are inevitable.

That reduced wage allows the productivity you represent to become competitive with global productivity/wage standards, meaning we might be able to compete in industries we are outsourcing today.

The falling dollar should hasten the bottoming and recovery of the RE market, ending the defaults, rescuing the banks and keeping people in their homes, even expanding their equity.

And inflation definitely makes debt more affordable because you repay it with worthless dollars.

This is such standard wisdom that all the world is trying to devalue their currencies: China by pegging the yuan to the dollar, the EU by promoting the PIIGS panic, the US by launching QEII, and Japan has been trying to weaken the yen for 25 years to combat deflation!

This is as mainstream an idea as exists!

It is so mainstream that it has been our econ policy since WWII, we call it monetarism. And virtually everybody on the planet operates under the same econ dogma.
It's an idea I don't subscribe to.

You're advocating that perpetual games be played with our currency.

The Fed's aim is to keep prices stable, yet they haven't done anything of the sort in their almost 100 year history.

You can have your USD, all I ask is for other currencies to be allowed to compete in the market. Then we'll see what the free market thinks of it all.

Apparently the market was taking a liking to the Liberty Dollar, otherwise the Feds wouldn't have gone to such lengths to stop it, even in the face of previous statements by them saying that it was legal.

I suppose they didn't have a problem with it when it was still a fledgling idea that hadn't caught on. When it became apparent that the idea was being accepted on a broad basis, all the sudden it wasn't legal anymore.

I'm of the Austrian school of thought, btw. Monetarism can suck it.
 
then make China break the peg. As long as they manipulate their currency downward and we don't then we can not stimulate our way out of a recession.

And end the current accounts deficit immediately.
 
then make China break the peg. As long as they manipulate their currency downward and we don't then we can not stimulate our way out of a recession.

And end the current accounts deficit immediately.

I think the super short sighted government actually LOVES the peg. It means free stuff, even if economy is in ruins.

All they had to do was stop taking debt and the peg would be over.

Also PEG makes dollar gain in value, since speculators are investing in dollars because chinese buy em.

My 2c on this. Now they are doing QE and without doubt raising the debt sealing (they could justify it this time with inflation or other gimmick too). They want the chinese to peg. It means free stuff, but also means US not being competitive nor self sufficient.
 
Disagree on motivation. There are a huge number of lawsuits and more to come in foreclosure gate. The notional value could be as high as a quadrillion dollars I presume, but in fact only about 2-4T max will end up in the hands of plaintiffs, lawyers and courts but that will all come out of monetary base. The lag in getting it back into monetary base could well fall in the 600 billion range that the Fed is injecting into the economy. But with 9 years of shadow housing inventory and a probable future peak of 15 years depressing housing prices negative wealth effects depress the economy for a long time to come. QE III and however many that will follow will have the effects you expect but that's down the road a ways.
 
Guaranteed to destroy the dollar. We'll all be busted with worthless paper. OBAMA & Bernanke are idiots and Americans are stooges going right along to the shit house.

China has quit lending to America. Here are the precise amounts.

Aug July Jun May Apr Mch Feb Jan Dec Nov Oct Sep

868.4 846.7 843.7 867.7 900.2 895.2 877.5 889.0 894.8 929.0 938.3 938.3

Printing fake money never worked and never will work. Treasury futures contracts are being rigged.
 
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.)



News Headlines

If the FED is retiring US debt are they really SPENDING?

Or are they merely putting more money (in the form of actual cash) back into circulation?
 
Guaranteed to destroy the dollar. We'll all be busted with worthless paper. OBAMA & Bernanke are idiots and Americans are stooges going right along to the shit house.

China has quit lending to America. Here are the precise amounts.

Aug July Jun May Apr Mch Feb Jan Dec Nov Oct Sep

868.4 846.7 843.7 867.7 900.2 895.2 877.5 889.0 894.8 929.0 938.3 938.3

Printing fake money never worked and never will work. Treasury futures contracts are being rigged.

china's forced to borrow in lockstep with easing if they hope to maintain the ratio with the dollar. it wont matter if they lend directly or in euros because it all will come back to US treasuries the same day.

there is very scarce chance of hyperinflation for this reason.
 

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