Federal Reserve announced more self purchase of US Debt
20 replies
padre31Luxury BoxOPWASHINGTON (Reuters) – The Federal Reserve launched an unorthodox 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.
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 as part of the new program. It said it would regularly review the pace and size of its purchases and adjust as needed depending on the path of the recovery.
Nearly 90 percent of its purchases would focus on Treasuries with maturities ranging from 2-1/2 to 10 years, the New York Federal Reserve Bank said in a statement.
"This provides the market with additional clarity," said Jeff Kleintop, chief market strategist at LPL Financial in Boston. "The question is whether this is enough."
Prices for 30-year bonds fell sharply after the Fed announced its decision, while major U.S. stock indexes hit sessions lows. The dollar fell against the euro.
Sooner or later, the third leg of the stool, hyper inflation will arrive.
They already tried this, it did not work, and yet 600 Billion Monetization will be tried, that is 600 billion "new" dollars to rob the value of the dollars you have saved..more dollars=less value.
Buckle your seatbelt.
VendigoSupporter"padre31 wrote:
They already tried this, it did not work
I've read about this plan a couple of days back and I'm dumbfounded. It's not only that they already tried this. About a gazillion other countries already tried this. It has never worked.
We can forgive a man for making a useful thing as long as he does not admire it. The only reason for making a useless thing is that one admires it intensely. All art is quite useless.
padre31Luxury Box"Vendigo wrote:
I've read about this plan a couple of days back and I'm dumbfounded. It's not only that they already tried this. About a gazillion other countries already tried this. It has never worked.
Exactly, if simply creating more paper lead to economic prosperity every nation on Earth would do so..
Ah well, note to self "plant larger French Style garden this Spring"
VendigoSupporter"padre31 wrote:
Exactly, if simply creating more paper lead to economic prosperity every nation on Earth would do so..
Well, the Greeks gave it a hard try ...
And it almost worked. They just ran out of money to buy new paper with.
We can forgive a man for making a useful thing as long as he does not admire it. The only reason for making a useless thing is that one admires it intensely. All art is quite useless.
padre31Luxury Box"Vendigo wrote:
Well, the Greeks gave it a hard try ...
And it almost worked. They just ran out of money to buy new paper with.
Will create a bubble for a time.
Odd thing is, of all US major Media outlets, the only one who is covering this is Glenn Beck.
KB21SupporterWinston Churchill once said that Americans can be counted on to do the right thing....after they have exhausted all other possibilities.
This is yet another case in point for that quote. You would think at some point people would actually start listening to Ron Paul. He's been telling us for years the evils of the Fed and the economic issues this unchecked organization has caused.
It's too bad that the mainstream media tries to paint a picture of Ron being a fool when he's the smartest, most honest politician in Washington.
KB21SupporterYouTube - Scoreboard 11 3 2010!
I used to marvel at some Turkish friends that I had that would rush to the bank every week to use their paycheck to buy dollars to avoid losing the value in their currency.
I think I will soon be taking my paycheck to buy euros and reminbi.
MikeHonchoSupporterI wish I were allowed to try Fed-like "solutions" to problems at work and still keep my job :pity:
Hearing **** like this makes me re-think my plans of having kids.
Headcoach material wouldn’t want to work somewhere they’re not trusted with actual football decisions.
ZippySupporterScary stuff. Yet there are still people thinking these clowns are doing a good job. I honestly cannot wrap my head around that.
MikeHonchoSupporterHeadcoach material wouldn’t want to work somewhere they’re not trusted with actual football decisions.
padre31Luxury Box"Zach13 wrote:
I used to marvel at some Turkish friends that I had that would rush to the bank every week to use their paycheck to buy dollars to avoid losing the value in their currency.
I think I will soon be taking my paycheck to buy euros and reminbi.
In countries with "less sophisticated" economies, they have experience with the Central Govt doing this very same thing, so Dowry's in gold and Gold Merchants are well known as monetary protection moves.
I would recommend "Generation Zero" for "Millennial Generation" folks to get a good taste of what the next 30 yrs will look like.
CrunchTimeRetired AdminIt used to be an advantage to be paid in dollars .Now the dollar devalues so quickly against my local currency that I have to spend them as soon as I get them .:pity:
Its a sad state of affairs to watch the dollar being manipulated in this way.....and it is being manipulated .
Stringer BellSupporterWow, sounds like treasury rates must be going through the roof.
“Come on, shake your body baby, do that conga!”
unluckylucianoNew Member"padre31 wrote:
Will create a bubble for a time.
Odd thing is, of all US major Media outlets, the only one who is covering this is Glenn Beck.
I read about it last week on bloomberg, so no thats not true.
thanks to VO for the sick ass sigs. 
Charlie: If you're not as educated or as informed what you do is you start your own party and you yell the loudest.
jdang307Supporter"unluckyluciano wrote:
I read about it last week on bloomberg, so no thats not true.
Last week was speculation. This week it's fact. And yes, after this megaton announcement, nobody but finance sites reported it. You can argue it's because of the elections, but this is huge, and bad.
Check out home page of the drudge. The backlash is starting.
unluckylucianoNew Member"jdang307 wrote:
Last week was speculation. This week it's fact. And yes, after this megaton announcement, nobody but finance sites reported it. You can argue it's because of the elections, but this is huge, and bad.
Check out home page of the drudge. The backlash is starting.
And that effects what I said how? And if we are just going with when it went official there are articles on abc and such. And I would never support propaganda like drudge comes up with.
thanks to VO for the sick ass sigs.
Charlie: If you're not as educated or as informed what you do is you start your own party and you yell the loudest.
padre31Luxury Box"unluckyluciano wrote:
I read about it last week on bloomberg, so no thats not true.
Yes it is true, has Bloomberg done follow up reporting of the effects of this?
If so how much, if not, why not?
Do you believe the rumor last week was sufficient for you to make financial decisions based on the inflating of the currency, in effect, a tax?
Did you notice Crunch's statement on what this means to his finances that concern the dollar? Is that propaganda as well?
unluckylucianoNew Member"padre31 wrote:
Yes it is true, has Bloomberg done follow up reporting of the effects of this?
If so how much, if not, why not?
Do you believe the rumor last week was sufficient for you to make financial decisions based on the inflating of the currency, in effect, a tax?
Did you notice Crunch's statement on what this means to his finances that concern the dollar? Is that propaganda as well?
yes bloombergs still reporting on this. I'm reading an article right now by the washington post about it. So others are following it. Sorry no conspiracy here.
thanks to VO for the sick ass sigs.
Charlie: If you're not as educated or as informed what you do is you start your own party and you yell the loudest.
padre31Luxury Box"unluckyluciano wrote:
yes bloombergs still reporting on this. I'm reading an article right now by the washington post about it. So others are following it. Sorry no conspiracy here.
Are they reporting the effects, on individual Americans, or are they saying "risky" "untested" etc etc?
Basically, anything made over seas and imported into America will see a price increase as the dollar loses value, that cost will be passed on to consumers.
That is the final product of Monetization and should be completely exposed for the theft it is.
unluckylucianoNew Member"padre31 wrote:
Are they reporting the effects, on individual Americans, or are they saying "risky" "untested" etc etc?
Basically, anything made over seas and imported into America will see a price increase as the dollar loses value, that cost will be passed on to consumers.
That is the final product of Monetization and should be completely exposed for the theft it is.
are they crying the sky is falling? No. But thats why I read bloomberg, they are for the most part unemotional. And yes the fed is trying to stimulate inflation to grow gdp.
thanks to VO for the sick ass sigs.
Charlie: If you're not as educated or as informed what you do is you start your own party and you yell the loudest.