[Son House]

Who would have ever thought a Democrat Administration would lead to more debt, higher taxes, and fewer jobs?

[BelegStrongbow]

I haven’t said it here, so let me opine on this. This is the same thing as taking $100 out of your checking acount and putting it back in, but refusing to let the bank note that the withdrawal occurred...and then using part of the money yourself before you put it back, and once again forcing the bank to record a $100 deposit.

It is nothing like actual fractional banking, which is what the Fed used to do, back when they were part of the solution.

Investors may well cheer right now, because they’re being given money to which they are not entitled but which can be used to generate a momentary surge in stock prices, thus reducing their capital losses and permitting them to exit the market with more returns. That’s money that somebody not yet born will have to provide being stolen and given to somebody who took a free-market risk and who is being repaid in a socialistic game.

Just sayin’.

[Terry Mross]

I simply don’t understand the concept. The government is going to pring more money. Where does it go? Or does “printing money” really mean selling bonds? If that’s the case the government gets the money. Someone explain to this dummy how this is supposed to work.

[Praxeologue]

For four years, the Fed has been on an unprecedented and insidious path toward the destruction of the U.S. economy. This week's announcement has increased the run-rate. Buying $1/2 trillion each year of government-guaranteed MBS is equivalent to its previous money-printing via Treasury purchases. Further, the continuation of Operation Twist intentionally increases the value-at-risk (VAR) of its portfolio of government-guaranteed junk, of which it represents 70% of demand. The Fed has now committed to this course until unemployment is back to normal; in other words, forever.

This is a politician's dream and a citizen's nightmare. The government can finance its deficits through the Fed. The resulting inflation won't appear, by most estimates, for five to ten years, well after current incumbents have left office. Presidents, Democrat and Republican alike, will say that it works, protects our jobs and that reducing the deficit would mean "austerity" and a depression. The result will be two lost decades, like Japan: minimal growth, high unemployment, disappearance of business opportunities, discouragement of individual initiative and entrepreneurship, and ultimately the loss of the American Dream. Yet these trends will be so slow-moving and subtle that it is unlikely that the average voter will be motivated to stop the process and accept the resulting pain.

A Republican President, no matter how well-intentioned, will be virtually helpless to stop this. The politics will prevent action.

I hope that I am wrong. However, I can't see a President Romney inviting us to take our medicine by inviting what is needed: a severe recession.

[ex-Texan]

Bernanke is a very focused jerk -- intent on more QEs and tax funded welfare for the Big Banks -- all of which guarantees a NWO dictatorship by Wall Street and tells me the by inference that Fed is really intent on imploding the U.S. economy and stealing innocent peoples' assets in the process.

MARTIN ARMSTRONG-FED JUST GUARANTEED ECONOMIC IMPLOSION- QE-3

Methinks Mr B knows a deep dark secret that nobody dares breath a word of under a most dire penalty