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Fed to Spend $600 Billion More To Help Boost US Economy (How low will the dollar go)
CNBC ^

Posted on 11/03/2010 1:10:06 PM PDT by Hojczyk

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.

(Excerpt) Read more at cnbc.com ...


TOPICS: Breaking News; Business/Economy; Front Page News; Government; News/Current Events
KEYWORDS: crash; economy; globalcurrency; monopolymoney; nwo; obama; ogn; omg; owo; peter2paypaul; richrhking; soros; spookydude; theyreinsane
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To: mdittmar

I’d buy myself a little Galt’s Gulch somewhere if I had the money.

Cash just doesn’t sit on the sidelines unless its in a mattress.

This is going to decrease the value of the dollar by that much.


41 posted on 11/03/2010 4:05:09 PM PDT by GeronL (http://libertyfic.proboards.com <--- My Fiction/ Science Fiction Board)
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To: nascarnation

That only works if you have a job. If you own money and can not pay the bank you can maybe delay 6 months the bank taking it. I you own your house out right it will take the city or town probably 2 years to take it.


42 posted on 11/03/2010 4:05:13 PM PDT by jroneil (Cut government in 1/2)
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To: Leftism is Mentally Deranged
Rising prices are easily confused with rising prosperity.

Not necessarily in this situation...rising prices in our current state of high unemployment and even higher under-employment will not necessarily result in higher salaries. What rising prices will do is put pressure on those frozen or non-existant paychecks - more money will be drained for basic necessities and less will be available for discretionary spending. For the mass of people in America with high debt to pay off, those rising prices also mean that there will be less available to pay down or service that debt.

What this does is provide very short term help to the government's balance sheet...at a high price later on. Kick the can down the road to the next election. Just keep the lid on the boiling pot...but it may well be a fool's bet for them because they are damned if they do and damned if they don't.

The financial pressure put on an already battered public straining to just make ends meet could create a bigger explosion than the government not being able to keep it's departments operating for lack of ability to borrow more funds.

43 posted on 11/03/2010 4:10:00 PM PDT by Scott from the Left Coast
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To: Captain Peter Blood

With the passage of Prop 23 here in CA, we’ll soon be paying $9/gal.


44 posted on 11/03/2010 4:10:19 PM PDT by Signalman
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To: Signalman

I mean the defeat of Prop 23.


45 posted on 11/03/2010 4:10:55 PM PDT by Signalman
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To: jroneil

Yes good points. But there are already empty foreclosed homes that just sit. But then property, (the right to smoke a cigarette in your home and flatulance)- taxes will soon have someone homeless. Will the country get to the point when county, state, fed taxes are not collected? I doubt it.

Obama cares for us remember... he wants us all on unemployment and welfare so it will all be ok.


46 posted on 11/03/2010 4:13:50 PM PDT by Dubya-M-DeesWent2SyriaStupid!
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To: Hojczyk

QE2 is just Obama’s end-a-round-run of the incoming republican majority.

He will be able to claim the markets are improving he will be able to show gains in the GDP falsely inflated by 500 billion worthless dollars.

Inflation will be “blamed” on the Republicans and if the dollar slides and fails Obama would then seek UN help in the form of monetary (world currency) oversight (authority). Thus his pro socialist agenda is not dead just re-navigated.
If the future value of the dollar is in jeopardy what institution in there right mind would loan money out today to be repaid at a much lesser value?
Again all of this will be skillfully spun as to blame those greedy Republicans.

Obama is only too happy to have the Republicans in charge when he and the Fed crash the economy.


47 posted on 11/03/2010 4:16:02 PM PDT by John 3_19-21 (The Tea Party will be heard Mr. Speaker!)
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To: Signalman

Soro’s must have bussed in many illegals with an electric bill for the win. That is quire sad I am sorry for Ca. have you thought about moving?


48 posted on 11/03/2010 4:16:22 PM PDT by Dubya-M-DeesWent2SyriaStupid!
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To: ThePatriotsFlag

The Federal Reserve like the IRS is not constrained by the Constituion.


49 posted on 11/03/2010 4:18:05 PM PDT by John 3_19-21 (The Tea Party will be heard Mr. Speaker!)
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To: John 3_19-21

Post of the year! You nailed it to a tee. I wish I could fit your post as a sig quote. It needs repeated. It is the truth very well stated.


50 posted on 11/03/2010 4:21:25 PM PDT by Dubya-M-DeesWent2SyriaStupid!
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To: Hojczyk

This will help. /


51 posted on 11/03/2010 4:25:34 PM PDT by Indy Pendance
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To: Captain Peter Blood
The QE2


52 posted on 11/03/2010 4:27:49 PM PDT by archivist007
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To: Hojczyk
This whole thing is a house of cards. The real reason the Fed is doing this is there are not enough buyers out there for the new debt needed just to pay the interest on the existing US national debt.

The inflation genie is purposely being let out of the bottle. This is all part of the Marxist wealth redistribution plan. Destroy the savings of those that have lived within their means and turn them into serfs.

FUBO

53 posted on 11/03/2010 4:30:08 PM PDT by Gabrial (The Whitehouse Nightmare will continue as long as the Nightmare is in the Whitehouse)
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To: GeronL

Maybe we’ll meet there someday;)


54 posted on 11/03/2010 4:30:33 PM PDT by mdittmar (i)
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To: archivist007
The Fed's first $1.75 trillion bond-buying program, which ran from Dec. 2008 to March 2010, is credited with helping the economy when the U.S. was hit by a financial crisis and a deep recession. The latest move is more controversial because the economy is now growing -- albeit slowly -- and financial markets are no longer under severe stress.

LINK to ARTICLE

55 posted on 11/03/2010 4:31:47 PM PDT by Dubya-M-DeesWent2SyriaStupid!
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To: jroneil
I you own your house out right it will take the city or town probably 2 years to take it. ?????
56 posted on 11/03/2010 4:35:51 PM PDT by nascarnation
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To: mdittmar
From the link in post #55. Am I reading this correctly do I need new reading glasses?

The Fed said it expects to buy between $850 billion to $900 billion Treasurys through the end of the second quarter of 2011. That's because in addition to the $600 billion, the Fed expects to buy about $35 billion a month to replace mortgage bonds in its portfolio that are being retired, a decision that was taken back in August.

57 posted on 11/03/2010 4:36:55 PM PDT by Dubya-M-DeesWent2SyriaStupid!
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To: Hojczyk
Just my humble opinion:

Had the pubbies not made a killing yesterday, this never would have happened. It is based on making our dollar worthless, while the pubbies control the purse strings, to get us on a global currency. Super-duper inflation just around the corner!

Prepare!

58 posted on 11/03/2010 4:40:27 PM PDT by Road Warrior 04 (I miss President Bush greatly! Palin in 2012! 2012 - The End Of An Error! (Oathkeeper))
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To: glorgau
Fed to create $600 billion from thin air!

Yes, that's how the system works.

Where they are being foolish is using this new money to buy federal debt. That's not the smartest way to use the money; that debt will have to be serviced by the government forever, and it creates a net drag on the economy.

While there are competing ideas as to the most effective use of such new, fiat Fed issue, I think that using it for straight up consumption is probably the most effective way to use it although the hardest to defend in our current system.

I personally think that the government might as well simply have the Treasury create the issue ("Greenbacks", not Federal Reserve notes) and use that new money to directly meet expenses. The advantage is that that money goes straight into the economy instead of building yet a higher mountain of debt for our children to pay for.

The downside of such "hot" issue, though, is that it is extraordinarily inflationary. It is the very definition of "running the printing presses".

If we were to do it to the extent of $600 billion of new issue with no corresponding debt against that issue, it would be a very dangerous act since the multiplier on that is probably close to 7 giving (again, very, very roughly) a $4 trillion kick to a $14 trillion economy which would result in perhaps 20% inflation. Or maybe a lot more, or (conceivably) a lot less. It depends on how sluggish the economy stayed with such a powerful infusion of hot money.

59 posted on 11/03/2010 4:46:58 PM PDT by snowsislander (In this election year, please ask your candidates if they support repeal of the 1968 GCA.)
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To: Bushbacker1

If they sent each human being living in America 350K
we could all be happy in hyperinflation.

The pubs said no more spending and this happened today.
What vote did they have to stop it? Holy crap this is getting crazy. As Obama lights his huge bong before he goes to muslim worship overseas in the Taj Mahal and what is Hillary doing other than giving Bill an excuse to have Monica over?

Pelosi is walking through her vineyard in luxury laughing her ass off in her new commie state. Oh and don’t worry Obama has our back on those mail bombs.

Nuts!


60 posted on 11/03/2010 4:49:33 PM PDT by Dubya-M-DeesWent2SyriaStupid!
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