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Bernanke: Fedís ability to support U.S. economy is limited
Reuters ^ | Wed Dec 12, 2012 6:15pm EST | Alister Bull

Posted on 12/12/2012 5:45:19 PM PST by Olog-hai

There are limits to how much aid the Federal Reserve can provide to the U.S. economy, Fed Chairman Ben Bernanke warned on Wednesday as he urged politicians to tackle a year-end fiscal cliff that could derail the country’s gradual recovery. …

The U.S. central bank announced it would keep buying $85 billion of Treasury and mortgage-backed bonds a month until it saw a substantial improvement in the outlook for the labor market. Its balance sheet would increase to almost $4 trillion by the end of next year if it kept up that pace of purchases. …

Critics of the central bank’s aggressive actions to engineer a quicker reduction in the level of U.S. unemployment charge that it risks stoking both future inflation and credit bubbles by massively expanding its balance sheet. …

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


TOPICS: Business/Economy; Crime/Corruption; Government; US: District of Columbia
KEYWORDS: bernanke; fiscalabyss; fiscalcliff; helicopterben; hyperinflation; qe4
The only thing there are limits on is government spending. But they still want to pretend that there are no limits, up on Capitol Hill.
1 posted on 12/12/2012 5:45:30 PM PST by Olog-hai
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To: Olog-hai

Yeah, there are only so many trees to make paper.........


2 posted on 12/12/2012 5:47:07 PM PST by Red Badger (Lincoln freed the slaves. Obama just got them ALL back......................)
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To: Red Badger

Can mix a great deal more ink than we can create more paper. We’ll just have to use the same paper, and use more ink on them... in the form of Ø’s (Øh, hØw apprØpriate)...


3 posted on 12/12/2012 5:55:36 PM PST by C210N (When people fear government there is tyranny; when government fears people there is liberty)
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To: Red Badger

These days, more like “can’t create dollars without electrons and can’t make enough electrons without coal”


4 posted on 12/12/2012 5:57:31 PM PST by ProtectOurFreedom
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To: Olog-hai

Then WHY KEEP DOING IT?????????????????

http://confoundedinterest.wordpress.com/2012/12/12/fed-announces-further-monetary-stimulus-protests-erupt/


5 posted on 12/12/2012 5:58:55 PM PST by whitedog57
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To: C210N

They don’t even need paper or ink any more. Numbers just magically appear on bank computer screens ........


6 posted on 12/12/2012 5:59:36 PM PST by Red Badger (Lincoln freed the slaves. Obama just got them ALL back......................)
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To: Olog-hai

They’ve been doing ok in keeping the house of cards up during the past 3 or 4 years. Never mind that when it finally goes down, it will do so spectacularly, thanks to the Fed.


7 posted on 12/12/2012 6:01:16 PM PST by KoRn (Department of Homeland Security, Certified - "Right Wing Extremist")
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To: Olog-hai

Isn’t the Fed supporting the U.S. economy like shining a lightbult on a solar panel that’t charging a battery that’s running the lightbulb?


8 posted on 12/12/2012 6:07:58 PM PST by tacticalogic ("Oh, bother!" said Pooh, as he chambered his last round.)
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To: tacticalogic

... and that lightbulb is controlled with a dimmer. As the lighbulb dims due to the solar panel not able to keep up with the discharging battery, we just dial the dimmer to make the bulb brighter.


9 posted on 12/12/2012 6:18:20 PM PST by C210N (When people fear government there is tyranny; when government fears people there is liberty)
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To: Olog-hai

Ben Bernanke is like a doctor in a hospice who finds it necessary to appear before the patients from time to time to lugubriously remind them that there’s nothing he can do to help them, they’re all going to die, but in the meantime he’ll do everything possible to make them comfortable by printing 85 billion dollars of new currency every month.


10 posted on 12/12/2012 6:40:05 PM PST by Bluestocking
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To: Bluestocking

That’s a pretty good analogy, but not quite accurate. More like the Heroin dealer who keeps supplying a junkie while simulanteously reminding him that Heroin isn’t good for him.


11 posted on 12/12/2012 6:46:29 PM PST by rbg81
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To: tacticalogic

>> Isn’t the Fed supporting the U.S. economy like shining a lightbult on a solar panel that’t charging a battery that’s running the lightbulb?

Yeah, basically, except that your lightbulb=>solarpanel=>battery=>lightbulb thingamajig is more efficient.


12 posted on 12/12/2012 6:51:46 PM PST by Nervous Tick (Without GOD, men get what they deserve.)
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To: Olog-hai

Can you imagine the mess the president is going to have in 2017. Yikes! Barry will be coolin’ his heels on a beach in Hawaii, eating an ice cream cone, counting his money and laughing is @$$ off at us. We’re the fools.


13 posted on 12/12/2012 8:04:10 PM PST by FlingWingFlyer (I feel sad for my once great country. We deserve everything that is about to happen to us.)
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To: Olog-hai

Sure, the Fed’s ability to aid the US economy is limited but there is no limit to the Fed’s ability to screw it up.


14 posted on 12/12/2012 8:11:53 PM PST by freedomfiter2 (Brutal acts of commission and yawning acts of omission both strengthen the hand of the devil.)
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To: freedomfiter2

beat me to it and screw it up they did outside of their mandates...


15 posted on 12/12/2012 8:20:36 PM PST by rolling_stone
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