Skip to comments.This could be the largest Fed stimulus yet
Posted on 10/28/2013 7:41:41 AM PDT by listenhillary
QE3 is on track to be its largest bond-buying program yet, if it follows the path predicted by Wall Street.
The Fed was expected to wind down its third round of quantitative easing, known as QE3, at the end of this year. But most predictions are now well into 2014, with some as far out as June.
Economists largely believe the government shutdown and debt ceiling debate have forced the Fed's hand, creating a weaker economic outlook and muddying the data the central bank relies on to make decisions.
Given this environment and the leadership transition as Ben Bernanke's term ends in January, the Fed will likely continue its current stimulus program at full blast -- buying $85 billion in bonds each month -- until at least March 2014.
That means QE3 could total around $1.6 trillion, calculates Paul Ashworth of Capital Economics. That's more than either of its two predecessors. In contrast, QE1 totaled $1.5 trillion and the second round of stimulus added up to about $600 billion.
(Excerpt) Read more at money.cnn.com ...
More inflation. More debasement of the currency.
Somehow, Bush and Greenspan will have actively done this rather than Obama and Yellen.
How long can the government pay its bill by printing more money, especially as tax revenues fall and GNP stagnates? Can Obama get through the next 3 years and dump it all on the next President? I doubt it.
If conservatives really want to kill progressivism and pull it up, roots and all - kill the Federal Reserve.
You can not have the unlimited welfare state without nationalization of the currency and Central Bank controlled interest rates.
Its clear that the ONLY thing that has saved Obama these past 5 years has been the Fed’s monetization of $ Trillions in Federal Government debt, and the FED’s flooding the US economy with money.
Imagine what the US government would look like if it could only spend what it could bring in in taxes, or borrow at REAL interest rates?
No and when the end comes... it will be a deep hole that will open very quickly.
I would estimate a government 1/2 it's present size. You just know they are not going to be able to keep their hands off of private retirement funds. Junkies have no morals when they are jonesing for their fix.
Terminate the -Reserve- it is the the soul for the spirit of: gov is god. Not to mention, clearly not lawful according to the supreme law of this land.
They can`t end it and they know it. If the DARE stop printing money the DOW collapses, interest rates skyrocket.
DOW drops because it is now soley dependent on easy Fed cash and interest rates explode because the Fed would be forced to buy less T-bills and countries don`t want to buy them.
As long as they don’t care what they do to value of the US dollar, forever.