Skip to comments.Fed to Spend $600 Billion More To Help Boost US Economy (How low will the dollar go)
Posted on 11/03/2010 1:10:06 PM PDT by Hojczyk
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This will help. /
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.
Maybe we’ll meet there someday;)
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.
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!
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.
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.
Buy a nice homestead out in the country with some areas of land and get it survialist ready.
Very interesting take, however based on other examples around the world, demonstrations and violence typically start when the government unions have their gravy train interrupted. Seldom have the producers started these activities. I think this is the bet Obama is making, specifically that he can sacrifice the private sector for the next two years while continuing to artificially support government entities. Case in point - WSJ today reported GM was getting a $40,000,000,000+ tax break. The UAW is essentially now a government supported union. I have seen riots in Detroit and I will guess I will see them again. His lifting the cap for bailing out the GSEs (Fannie & Freddie) also support this notion.
Find a safe place my friend.
Okay - Let me preface this - I’m no financial guru, whatsoever.
What does one do if they have cash sitting in the bank? What should one invest in right now, if anything? Real estate, gems...???
Please don’t slam me. I’m a lay(wo)man.
I must say....you Freepers have educated me more than any college could! Thank you!
And that’s exactly the reason why he’s doing it. Time to pile the blame for anything and everything on the GOP so the Rats can jump back on the ship in 2012. It’s all a pre-calculated move.
If they want boost our real economy they should loan this qe2 capital to US businesses at 0% instead of to our financial supermaket banks - who unload their crappy derivatives on to the fed and take the fresh capital and send it off to the hot money markets in thailand, china , singapore et. Further sinking our dollar as speculators sell those dollars and buy foreign currency and assets.
Yes but when we crash and the dollar is worth nothing,nada, zip and Obama fires up his speech in a teleprompter to say he saved us with a global currency and you can pick up your ID card at blah blah blah govt owned bank. Then what? (I know... Iknow... it sounds like a series of books I read,
it is nuts) but every other day I see an article on Drudge China... Russia.. blah blah wants world order/currency) the world is sitting by hammering for this waiting on us)
I thought last night meant something. I voted to stop this garbage. Leaving politics out of it; will the new speaker stop what has already happened (been announced) today?
Folks, I’ve said this before, and I’ll attempt to explain it again:
1. Inflation is ALREADY HERE, is HERE, and it’s rampant.
eg. the price of a 10 cent candy bar is instead .75 and upward. The price of a .37 gal of gas is instead 2.85 and upward. The price of a new 3000.00 car, move the decimal pt. is instead 30,000.00. The price of a college textbook at 10.00 is instead 50.00 and upward. The price of the above mentioned new car, is what the price of a new house was in the 1960s. And food, canned salmon over 2.00 and how about a can of cat food, just several years ago at .37 now over .50. Remember a trip to the dentist for just a check up and cleaning at 15.00 (I do), last visit just for for a cleaning and check-up 79.00.
2. This 600 billion (think about the de-sentization) that’s SIX HUNDRED B I L L I O N, and what is it?....
3. It’s a PAYOFF to the govt. pension funds of squandered retirements lost in the MBS (and the other junk acronyms) so called “securities” based on NON-PERFORMING fake loans”.
F A K E LOANS BECAUSE THERE IS NO COLLATERAL.
4. This payoff goes back to govt. pensions. It’s another bailout circumventing the Legislative Branch, and of course would never make it through the House Of The People now.
5. These payoffs mean the game of using public govt. retirements by investment so called “banks” (which quickly become “holding companies” remember with no consequences to themselves), goes on... and artificially props up what should have been a free market.
6. This money instead should never be in the hands, ever, of these “HOLDING” companies, (those that attempt to call themselves “banks”)to invest as they may. These funds should be in safe public escrow accounts..NEVER in the hands of ANY private entity.
7. As long as the above paradigm continues will leave an entire group free of any accountability. And will also constantly kick back losses to real U.S. citizens.
8. This time the bailout is less about rising prices ABOVE THE INFLATION ALREADY RAMPANT (#1 above), but about unemployment. Price pressure is equalized by mass layoffs and unemployment. (Notice how there was never any real sustained employment programs implemented by Congress?..and they don’t have a plan now) They are out to save themselves, which is why college grads struggle (and have been bought off from revolt up to age 26), and jobs are scarce. Employment is off-shored, away from govt. regulations, price pressure groups, and liabilities.
Time to SCREW SOROS and the FED! What will we do? What can we do. KEEL HAUL him/them? He and the FED deserve nothing less!
SOROS is the ultimate INSIDE TRADER! He’s making BILLIONS on this!
‘which would result in perhaps 20% inflation’
Bill Gross, is that you?
Very well explained thank you. So when does hyperinflation hit or has it? Soon to be $9 gas?
Desensitized is a good choice of words.
I voted last night to stop this garbage and this news hits.
I am angry.
I'm looking for real estate!
1) Do NOT have a single banking relationship. Find solid banks using something like this...
...and spread what money you have over a few solid institutions. Make sure at least one is based in your home town. Have ID’s and passwords for each account and don't keep them on your computer. Keep them handwritten in a “little black book” that you keep with you at all times.
2) Even in inflationary times, cash is king. Live within your means.
3) Buy used gold jewelry you like to wear. Keep it in a safe when not in use.
4) Real Estate might be an option if you have the means to maintain it.
5) Train yourself on the use of firearms and buy some high-end weapons that will retain/increase in value.
6) Learn to grow things like peppers, tomatoes and squash.
7) Get out of a big city if that is where you live now. Find a suburb with low crime statistics. Move now before everyone wants to. Get to know your neighbors.
8) Try not to owe anyone anything.
Rising input costs will mean another round of layoffs.
PS I have a new tagline.
I like number 7 because bartering will be an ideal way of life.
You are a troll, your link sucks.. folks,, don't go there.
You pretty much nailed it.
I reckon $500 bn might boost gold by some $500/oz. May see $2000 gold by Springtime?
I wish I had the data to do it but am sure a regression equation can be developed correlating the amount of oil price increase in $ and gold price increase in $ based on the amount of QE pumped into the economy over a given period of time, and how much the $ will decline against the Yen and Euro.. That would be a very useful predictive model.
One this is for sure is that prices have not gone down while jobs and demand dried up.
So where did the $2 trillion they already printed go?
I just can’t wait until the dollar is like the Zimbabwe money with hyperinflation. They have trillion dollar bills. I can’t wait until these Fed Reserve morons screw me and my family. Thanks in advance, you nitwits.
What will happen to all those far left groups when the old bastard Soros croakes?
Collapse of the dollar coming!
then the republicans can get the blame!!
OPEC leaders had already signaled $90 a barrel as an acceptable price target. Given their stance, this pending drop in the value of the dollar, and the increased cost of drilling for unconventional oil sources, we are likely to see $100 a barrel oil before summer.
Well said. But instead of jail, I’d like to see them at the stake in the town square with every unemployed person in the country getting his turn with the bullwhip.
And at Bawney to their company.
Upon hearing this news. This also comes to mind:
You called that exactly right!
Soros was booted out of Europe and as I understand Clintons welcomed him here. He manipulated the banks in Europe and cleaned up monetarily by doing so, he is a felon and was convicted...so they booted his fanny out. Now he’s doing the same thing in our country..and thru us also on the International scene. The man is heartless and vile
But where does one even begin to get into survival mode. There must be lists for essentials from reliable websites. I tried some but there are so many where do you start? Thinking food would be first priority?
That’s about 5500 dollars for every household in America.
This title is a lie. The Fed is not expanding the money supply by half a trillion in order to boost the economy. They are doing it solely to help finance the federal budget deficit. No one is buying Treasury bonds, and the government needs cash to keep running, so the Fed stepped in and bought those bonds with freshly-issued money. (See: Zimbabwe)
Well I must say, it is not “my” link. I have personally found Bauer Financial Services to be quite helpful in providing an objective measure of the relative financial strength of a bank. It is well regarded in the industry. Here is one review. There are others out there.
It is not the easiest site to use as you must have very detailed information regarding the bank you want to research. Major banks have many different charters and subsidiary institutions and you must be careful to exactly identify the bank you are researching.
Good luck, and I hold no grudge on you for calling me a “troll”. Your accusation does not make me regret my financial contribution to this very good forum.
Not only 600 Billion, but 75 Billion a month through the second quarter of 2011. That would be somewhere in the neighborhood of another 450 billion. That only adds up to another Trillion over the next 6-8 months....
No. that’s what I’d like to do. I was responding to the question in post 25 of “So if you had some cash just sitting on the sidelines,what would you do?”
Right now, we’re looking at insulating the house, putting in a new window or two, getting a new front loader washer, finishing remodeling the bathroom. We could save some money with some of those improvements and I think we ought to before any inflation hits and the money is worthless.
ChocChipCookie has a survivalist ping list that could help you get started.
*sigh* where to begin....
We already live pretty far out in the country in a small town but don’t have a lot of property. Living more out in the country is going to be safer when TSHTF. Less likely an immediate problem with looters and gangs and likely the grocery stores will be looted out in a day or so. Once the food runs out in the cities, it’s going to get ugly real fast. However, everyone will be heading out into the country cause they think food will be there.
Some people have emergency bug out kits stored in their cars. A backpack, an extra pair of sneakers, water, some freeze dried or high energy snack food to carry to get them home.
First off, don’t tell anyone about it. You don’t want them all coming after you for food because they didn’t prepare, and they will and they will expect you to cheerfully share what you have, not thinking that that will make you run short sooner.
The essentials are considered water, food, ammo and a gun, and any medicines that you might need. Lead is considered a better investment that gold or silver, by survivalists. I think salt is going to be an overlooked necessity.
There are many foods that can be stored very easily. I use canning jars for mine as the lids make an airtight seal even though I don’t process them. I store grains, nuts, and spices in mine, usually in the freezer until I need the freezer for meat. Even when they’re not in the freezer, they are pest proof in the jars. However, the jars can break. If you’re somewhere where you can stay, canned goods shouldn’t be a problem, like tuna, soups, etc. but they’re too heavy to carry when *bugging out*.
I have my own canning supplies, a canner, a pressure canner, tons of canning jars and a fair supply of lids. I am able to home can food I can find locally.
I also have a decent stock of paper goods and soaps and shampoos and laundry detergent. A large part of that is because I HATE dragging the heavy stuff in through the slop in the winter, plus, you never know when you’ll be homebound cause of an ice or snow storm. When everyone is in panic mode at the local Wegmans stocking up for the storm before it gets any worse, (they’ve already waited till it started) I’m at home looking out the window thinking that it’s nice that I don’t have to go anywhere.
You know, a good book to read is One Second After. It’s a fictional scenario of what happens after an EMP (electromagnetic pulse) fries all the electronics and society breaks down. It is rather thought provoking and if you’re prone to it, you’ll be crying your eyes out towards the end. I’m not and I was.
What the book really showed me was that without too much trouble, one could have a nice little store of food that, carefully managed, could get them by for a few months. It certainly wouldn’t be what we’re used to, but you could survive on that.
Ever since bammy got in office, this world has sounded like a Left Behind novel.
It’s not just you.
.. and the sheeple will blame the oil companies. *sigh*
You know in all the years I've been in finance, reading their statements, watching their hearings, etc., I never noticed that.
Thanks, you learn something every day.