Skip to comments.The New Hoover Dam: 2013 Fed Purchases Equal Expected Federal Deficit
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. Feds 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 Feds balance sheet that equals the expected Federal government budget deficit a good idea? Lets see when The Fed tries to unwind a $4 trillion portfolio.
And isnt 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 Feds Balance Sheet the New Hoover Dam?
(Excerpt) Read more at confoundedinterest.wordpress.com ...
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.
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.
with all the money odumbass is spending we could buiuld a new nuclear power plant every single month and give everyone free energy
Wow, look at all the excerpted blog posts you’ve put up from a single source:
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?
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!
I see that decency and fair dealing are not dead.