Federal Reserve Succumbs To Election Politics

Discussion in 'Politics' started by g5000, Sep 13, 2012.

  1. g5000
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    g5000 Diamond Member

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    To aid Obama in his horrific handling of the economy, the Fed is launching QE3 in an attempt to give him a pre-election boost.

    It won't work, though. The Fed is firing blanks. They can no longer do anything to provide an economic climate which fosters growth. That's all on Congress and the President, and they all get an F-.


    Fed Announces New Round of Bond Buying to Spur Growth

    It's those "other new policies" you really need to watch out for. Perhaps the buying of corporate bonds?

    Bernanke is setting all kinds of precedents which will bite us in the ass in the long run.

    Plan for an October surprise.


    Mid-2015. Jesus H. Christ.



    Very few people agree.


    The Fed press release is here: FRB: Press Release--Federal Reserve issues FOMC statement--September 13, 2012

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  2. g5000
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    g5000 Diamond Member

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    The Hidden Costs of Monetary Easing - WSJ.com

    That last paragraph is particularly prescient. The government has become addicted to short term, low interest borrowing. In other words, we have been hooked into using revolving debt. This is more and more literally like using a credit card to finance our government.

    Instead of borrowing low interest money for a 30 year term, we are borrowing at 30 day terms. Every American needs to be aware of the near term consequences of this policy. This is not something your grandchildren will suffer for. This is now something YOU will suffer for.

    When interest rates begin to rise, the impact will be sudden, deep, and profoundly painful.

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    Last edited: Sep 13, 2012
  3. BreezeWood
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    BreezeWood VIP Member Supporting Member

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    not everyone sees the Fed's plan as a bad idea ...
     
  4. Mad Scientist
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    Mad Scientist Feels Good! Gold Supporting Member Supporting Member

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    Banks are using that money to make bets on the Stock Market. That's not a real good Economic Indicator.
     
  5. PredFan
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    Don't you think it will backfire though?

    Seems to me that the US will get it's credit downgraded partly because of this.
     
  6. TakeAStepBack
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    TakeAStepBack Gold Member

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    It was only a matter of time.
     
  7. Oddball
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    Oddball BANNED Supporting Member

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    I'd go hit up the local coin dealers for all the junk coin you can, while there's still time left.
     
  8. g5000
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    g5000 Diamond Member

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    Every quantitative easing sees a jump in the Dow. When the dollar is weakened, what happens to prices?

    They go up. So of course equity prices will rise.

    You will also see a jump in metals.

    The euphoria over QE3 won't last through the weekend.

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    Last edited: Sep 13, 2012
  9. g5000
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    g5000 Diamond Member

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    That is precisely what I am saying. This monetary easing and short term revolving credit financing will backfire, big time.

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  10. TakeAStepBack
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    TakeAStepBack Gold Member

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    Central planning and fiat money doesn't work on any other cylinder than "backfire".
     
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