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QE4 Is Here: Bernanke Delivers $85B-A-Month Until Unemployment Falls Below 6.5%
forbes ^ | december 12, 2012 | Agustino Fontevecchia

Posted on 12/13/2012 4:39:54 AM PST by lowbridge

Ben Bernanke continues to make history at the Federal Reserve. On Wednesday, the FOMC announced more quantitative easing at a rate of $85 billion a month for an extended period of time. The Bernanke Fed has also modified its guidance, noting its ultra-accommodative stance will remain in place until the unemployment rate falls below 6.5% and inflation projections remain no more than half a percentage point above 2% two years out.

QE4 is here. Only a few months after announcing what had been dubbed QE3, an open-ended $40 billion a month program to buy up mortgage backed securities (MBS), the FOMC decided to extend its asset purchases in 2013 as Operation Twist expires.

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


TOPICS: Business/Economy; Crime/Corruption; Government; News/Current Events
KEYWORDS: feds; qe4

1 posted on 12/13/2012 4:39:57 AM PST by lowbridge
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To: lowbridge

A Benny for the Old Guys?

 

This is the way the world ends
This is the way the world ends
This is the way the world ends
Not with a bang but a whimper.
---from T.S. Eliot's "The Hollow Men"

2 posted on 12/13/2012 4:44:43 AM PST by TArcher
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To: lowbridge

And on it goes....money for the “big banks” and realty market.

America has become the “drunk sailor” in port with a visa card without any limits.

Obama and his minions have certainly guaranteed that China will not have to invade us to take us over.

It’s not done by military might...it’s done by credit card.


3 posted on 12/13/2012 4:47:28 AM PST by DH (Once the tainted finger of government touches anything the rot begins)
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To: DH

At least drunken sailors spent their own money.


4 posted on 12/13/2012 4:55:56 AM PST by JohnnyP
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To: lowbridge

0bama does not need QE4 to reduce the unemployment rate ,, one call to the MSM stating the current rate of U/E is now at 3.6% should do it . What good is a corrupt govt. if you can’t fudge the numbers and pass them along to the water carriers ???


5 posted on 12/13/2012 4:55:58 AM PST by Lionheartusa1 (-: Socialism & Communism are the equal distribution of misery :-)
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To: lowbridge; blam; SeekAndFind; Ernest_at_the_Beach; All

Surprise News Flash: “The proven failure of ‘Prime-the-pump’ Keynesian Economics is STILL denied by Bernanke!”

“THE OVERSPENDING WILL CONTINUE UNTIL WE HAVE NO MORE DEBT !”

(Duh, the problem IS the Overspending, Professor of Economics Bernanke - - - ).


6 posted on 12/13/2012 4:58:41 AM PST by Graewoulf ((Traitor John Roberts' Obama"care" violates Sherman Anti-Trust Law, AND the U.S. Constitution.))
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To: lowbridge
Rare photo of
Ben Bernanke
as a child



7 posted on 12/13/2012 5:00:40 AM PST by shibumi (Cover it with gas and set it on fire.)
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To: lowbridge

Make no mistake, the Fed is using $$ created out of thin air to buy 80-90% of US Treasuries. Why? To keep interest rates down so our exploding deficit remains nominally affordable. The Banks also benefit because the Fed buys their underwater mortgages on the promise that they will likewise purchase “risk free” US Treasuries.

But this free money is not cheap. Its being paid for by savers who can’t get decent interest on their CD accounts. It also WILL be paid for by investors who are forced to take on more risk to get any kind of return. It also distorts market dynamics as Banks don’t need to make loans to anymore. In short, its stealth wealth transfe. No law — or smoking gun of any kind — is required.


8 posted on 12/13/2012 5:01:06 AM PST by rbg81
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Comment #9 Removed by Moderator

To: lowbridge
When hyperinflation gets started, there is no stopping it until the crash.

...the Bernack will then fold up his tent, retire to the Bahamas and live happily everafter.....when what he needs is to be dealt with "at the most populous intersection of the town at high noon".....

..these people need to pay a price for being wrong:

It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong.

Thomas Sowell

10 posted on 12/13/2012 5:07:34 AM PST by B.O. Plenty (Give WAR a chance.......)
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To: lowbridge

Does the House fund the Fed?


11 posted on 12/13/2012 5:15:06 AM PST by ThePatriotsFlag (...and to the Republic for which it STOOD...)
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To: ThePatriotsFlag

The House. Yeah. Maybe they can stop this. [/s]


12 posted on 12/13/2012 5:27:57 AM PST by ClearCase_guy (Republicans have made themselves useless, toothless, and clueless.)
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To: Graewoulf

In the ‘30s the public funds actually went to the unemployed via WPA, CCC, and other work projects. This time however it’s all going to private banks to subsidize operations and realize profit. Worse yet, under the pretext of being “stuck with bad mortgages” the banks keep the notes on the properties. So the public doesn’t even receive the property which the banks were bailed-out for using public funds. Then they get to sell the note all over again and the process repeats.


13 posted on 12/13/2012 5:30:39 AM PST by Justa
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To: lowbridge

Bernanke is part of the Bush legacy.


14 posted on 12/13/2012 5:31:32 AM PST by Soul of the South
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To: lowbridge

Printing money could actually be a beneficial strategy of deleveraging to mitigate the pain of austerity if the fiscal cliff does send us over the edge. But I am not an economist and have no idea really...


15 posted on 12/13/2012 5:33:44 AM PST by erlayman
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To: lowbridge


The Gods of the Copybook Headings


AS I PASS through my incarnations in every age and race,
I make my proper prostrations to the Gods of the Market Place.
Peering through reverent fingers I watch them flourish and fall,
And the Gods of the Copybook Headings, I notice, outlast them all.

We were living in trees when they met us. They showed us each in turn
That Water would certainly wet us, as Fire would certainly burn:
But we found them lacking in Uplift, Vision and Breadth of Mind,
So we left them to teach the Gorillas while we followed the March of Mankind.

We moved as the Spirit listed. They never altered their pace,
Being neither cloud nor wind-borne like the Gods of the Market Place,
But they always caught up with our progress, and presently word would come
That a tribe had been wiped off its icefield, or the lights had gone out in Rome.

With the Hopes that our World is built on they were utterly out of touch,
They denied that the Moon was Stilton; they denied she was even Dutch;
They denied that Wishes were Horses; they denied that a Pig had Wings;
So we worshipped the Gods of the Market Who promised these beautiful things.

When the Cambrian measures were forming, They promised perpetual peace.
They swore, if we gave them our weapons, that the wars of the tribes would cease.
But when we disarmed They sold us and delivered us bound to our foe,
And the Gods of the Copybook Headings said: “Stick to the Devil you know.”

On the first Feminian Sandstones we were promised the Fuller Life
(Which started by loving our neighbour and ended by loving his wife)
Till our women had no more children and the men lost reason and faith,
And the Gods of the Copybook Headings said: “The Wages of Sin is Death.”

In the Carboniferous Epoch we were promised abundance for all,
By robbing selected Peter to pay for collective Paul;
But, though we had plenty of money, there was nothing our money could buy,
And the Gods of the Copybook Headings said: “If you don’t work you die.”

Then the Gods of the Market tumbled, and their smooth-tongued wizards withdrew
And the hearts of the meanest were humbled and began to believe it was true
That All is not Gold that Glitters, and Two and Two make Four
And the Gods of the Copybook Headings limped up to explain it once more.

As it will be in the future, it was at the birth of Man
There are only four things certain since Social Progress began.
That the Dog returns to his Vomit and the Sow returns to her Mire,
And the burnt Fool’s bandaged finger goes wabbling back to the Fire;

And that after this is accomplished, and the brave new world begins
When all men are paid for existing and no man must pay for his sins,
As surely as Water will wet us, as surely as Fire will burn,
The Gods of the Copybook Headings with terror and slaughter return!


16 posted on 12/13/2012 5:37:16 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: ClearCase_guy

I’m betting that Boehner has a plan to put a stop to this!
/s/s/s/s


17 posted on 12/13/2012 5:38:10 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: shibumi
I like your graphic.
If you believe the Democrats Fabian Fascists and their ILLEGAL Leader, the Arab-Kenyan, will do what they say they will do,
then it's a 10 % cost to save 67 % of your money to do it.
If you believe the value of our dollar will continue to be devalued by the Democrats Fabian Fascists and their ILLEGAL Leader, the Arab-Kenyan,
then you believe that the value of gold and silver will only increase.

So do I lose 33 percent of my labor from many years, in closing out my IRA now,
or do I risk losing it all into a devalued dollar that is rolled into the Social Security plan, like Rush explained?


18 posted on 12/13/2012 5:38:36 AM PST by Yosemitest (It's Simple ! Fight, ... or Die !)
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To: erlayman

We could just print 16 plus trillion shiny new dollars and drop them off in China and our other creditors door steps and say “thanks were even”.


19 posted on 12/13/2012 6:00:08 AM PST by Captain PJ (Are we there yet?)
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To: JohnnyP

At least drunken sailors spent their own money.


You have a good point there.

How’s this change: ...like drunken Democrats spent others money...


20 posted on 12/13/2012 6:12:59 AM PST by DH (Once the tainted finger of government touches anything the rot begins)
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To: Captain PJ

Except I can’t foresee any scenario in which the ChiComs will actually demand repayment. We are their best customer. If they have to stop shipping to Walmart the leadership there will experience the bloodiest revolution in history in relatively short order.

Ditto Saudi Arabia. Bernanke and the Elites know this.


21 posted on 12/13/2012 6:39:55 AM PST by Buckeye McFrog
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To: lowbridge
Get used to it, America is in the toilet. Nothing will stop the communists conversion except civil war.
22 posted on 12/13/2012 7:13:06 AM PST by Logical me
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To: lowbridge

Why hasn’t someone in Congress stood up and offered legislation that cuts Dollar for Dollar the exact amount Beneke prints each month?


23 posted on 12/13/2012 7:31:03 AM PST by WellyP (question!)
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To: TArcher

Sorry too angry! Make that Bernanke!


24 posted on 12/13/2012 7:32:23 AM PST by WellyP (question!)
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To: Buckeye McFrog
Except I can’t foresee any scenario in which the ChiComs will actually demand repayment.

More likely they will try to use it as a hammer over our heads if/when they start throwing their weight around their neighbors. If they declare some of the oil rich areas in the South China Sea to be Chinese territory and send in their Navy they will tell us "keep out, this is strictly a Chinese domestic affair." And we will comply to their wishes.

25 posted on 12/13/2012 7:45:20 AM PST by KarlInOhio (Big Bird is a brood parasite: laid in our nest 43 years ago and we are still feeding him.)
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To: lowbridge

It’s not QE4 — it’s QE Forever, or until unemployment falls below 6.5%, whichever comes first.

With employers about to suffer from a significant decline in the amount of money they will be permitted to keep, thanks to the end of the Bush tax cuts AND the expensive costs of complying with ObamaCare, they will have to let employees go, which will increase the unemployment rate, and 6.5% unemployment will increasingly seem like an impossible dream.

Ben Bernanke seems to believe that if he prints enough money, we can avoid catastrophe. In that case, why doesn’t he advise the Europeans to force Greece out of the euro so it can create its own currency and then print enough of it so that the Europeans won’t have to keep bailing the Greeks out and everything will be wonderful? If Mr. Bernanke believes that, he shouldn’t even be running a little bank in Peoria, let alone the Federal Reserve.

Or maybe Ben Bernanke believes that the U.S. is so superior to other countries it doesn’t have to comply with the iron rules of economics that govern lesser nations like Greece, or Zimbabwe, or Germany under the Weimar Republic. If Mr. Bernanke believes that, he also shouldn’t be running the Federal Reserve, he should be in a mental institution.


26 posted on 12/13/2012 7:57:35 AM PST by Bluestocking
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