Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

Skip to comments.

The New Hoover Dam: 2013 Fed Purchases Equal Expected Federal Deficit
Confounded Interest ^ | 12/16/2012 | Anthony B. Sanders

Posted on 12/16/2012 2:18:46 PM PST by whitedog57

Last week, Federal Reserve Chairman Ben Bernanke announced that The Fed would be purchasing $85 billion per month starting in January 2013. That amounts to $1.02 trillion in Fed bond purchases.

Coincidentally, that amount is nearly equal to the Federal governments expected budget deficit of over $1 trillion.

Chairman Bernanke also announced targets of 6.5% unemployment and 2.5% inflation. Unemployment currently sits at 7.7%.

And inflation remains muted. Fed’s Five-year Forward Breakeven Inflation Rate stands at 2.8050%.

And the USD inflation forward rate remains in negative territory.

But will purchasing debt to be put on The Fed’s balance sheet that equals the expected Federal government budget deficit a good idea? Let’s see when The Fed tries to unwind a $4 trillion portfolio.

And isn’t The Fed enabling Congress and The Administration to continue spending rather than putting its fiscal house in order (as Bernanke has repeatedly stated)? Or is the Fed’s Balance Sheet the New Hoover Dam?

(Excerpt) Read more at confoundedinterest.wordpress.com ...


TOPICS: Business/Economy; Government; Politics
KEYWORDS: bernanke; blogpimp; fed; inflation; unemployment
After Bernanke tells Congress/Adm to solve the fiscal crisis, The Fed decides to buy enough Federal debt and MBS that happens to equal the expected Federal deficit.
1 posted on 12/16/2012 2:18:59 PM PST by whitedog57
[ Post Reply | Private Reply | View Replies]

To: whitedog57
Please. We're talking about Monopoly money here, none of the usual metrics mean squat.
2 posted on 12/16/2012 2:26:55 PM PST by hinckley buzzard
[ Post Reply | Private Reply | To 1 | View Replies]

To: whitedog57

You have to give Barak, Bernank, and Turbo Timmy credit.

Poor old W had to sell the debt to the Chinese.

Now we just buy it ourselves.

Truly a fool’s paradise.


3 posted on 12/16/2012 2:27:49 PM PST by nascarnation (Baraq's economic policy: trickle up poverty)
[ Post Reply | Private Reply | To 1 | View Replies]

To: whitedog57

Federal politicians can fund all deficits by printing money. They have no incentive to limit expenditures. Only a minority of the population know or care that this will lead to ruin. The working middle class will bear the consequences.


4 posted on 12/16/2012 2:43:59 PM PST by Kennard
[ Post Reply | Private Reply | To 1 | View Replies]

To: whitedog57
One dozen eggs - $400,000,000,000 - that's four-hundred billion dollars for those of you in Rio Linda.


5 posted on 12/16/2012 2:47:35 PM PST by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: whitedog57
In the Carboniferous Epoch we were promised abundance for all,
By robbing selected Peter to pay for collective Paul;
But, though we had plenty of money, there was nothing our money could buy,
And the Gods of the Copybook Headings said: "If you don't work you die."
6 posted on 12/16/2012 2:53:43 PM PST by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: whitedog57

with all the money odumbass is spending we could buiuld a new nuclear power plant every single month and give everyone free energy


7 posted on 12/16/2012 3:10:27 PM PST by Mr. K (some days even my lucky rocketship underpants don't help...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: whitedog57

Wow, look at all the excerpted blog posts you’ve put up from a single source:

http://www.freerepublic.com/tag/by:whitedog57/index?tab=articles

One might almost think that you are fishing for hits for your blog.

Kind of like USING Free Republic as a free advertising tool.

Is that crazy or what?


8 posted on 12/16/2012 3:28:37 PM PST by humblegunner
[ Post Reply | Private Reply | To 1 | View Replies]

To: humblegunner
Wow, look at all the excerpted blog posts you’ve put up from a single source:

humblegunner on the job!

Y'know, this is actually good information. We are in a terribly dangerous situation.

But I've come to agree with you. If I had a blog with what would undoubtedly be excellent observations, I would post the entire article, disclose that it's my blog, and then invite interested FReepers to check it out if interested.

Honesty is the best policy!

9 posted on 12/16/2012 3:43:51 PM PST by BfloGuy (Workers and consumers are, of course, identical.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: BfloGuy
But I've come to agree with you. If I had a blog with what would undoubtedly be excellent observations, I would post the entire article, disclose that it's my blog, and then invite interested FReepers to check it out if interested.

I see that decency and fair dealing are not dead.

10 posted on 12/16/2012 3:49:07 PM PST by humblegunner
[ Post Reply | Private Reply | To 9 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson