Skip to comments.Fed official highlights benefits of flexible QE (Turn the spigots on before the election)
Posted on 07/23/2012 5:14:40 AM PDT by markomalley
An open-ended round of quantitative easing that could be adjusted to suit economic conditions should be considered if the Fed launches a fresh round of monetary stimulus, a top policy official in the Federal Reserve said in an interview with the Financial Times.
There is "pretty significant" downside risks to the U.S. economy from the euro zone crisis, John Williams, president of the Federal Reserve Bank of San Francisco, said in an interview with the Financial Times on Monday.
"The main benefit from my point of view is it will get the markets to stop focusing on the terminal date and also focusing on, Oh, are they going to do QE3?'" he is quoted as saying.
(Excerpt) Read more at news.yahoo.com ...
Printing money creates only illusory benefits to the economy — and even those take six months or so to become apparent. It’s too late now — and they know it. The best they can hope for is a jolt to the stock markets.
Open-ended? In politics, "open-ended" means permanent.
Replace “QE3” with “QE to infinity and beyond!”
Ben Bernanke, we love you long time, OK
Which any number of articles on CNBC discuss as flat-out irrational exuberance.
QE3 would come solely a last-ditch attempt by Bobo to downstream trigger hyperinflation; in reality it would cause the market to be cut off from all fiscal reality, and catalyst a black swan market event sometime in early 2013.
Well, we don't, do we.
But the majority of the population can't see beyond the idea that more-money-must-be-a-good-thing. And, as for the lack of proof, that's just considered to be caused by the imperfect free market.
I agree. The Keynesians were so sure they'd sparked a recovery that they laid off the money creation. That's a good thing for us -- but a very, very bad miscalculation for their side. But when all you look at is consumer spending, it's an easy mistake to make.
And they make it over and over and over again.
More for Federal and government pensions dumped in the market. = higher prices and unemployment
More for Federal agencies. = higher price pressure
More for Federal bureaus.= higher price pressure.
More for Federal student loans for decadent schools. = higher tuitions and free for all campuses.
More for government salaries = higher prices/unemployment
More for Federal Departments= higher price pressures.
UNTIL >>>> Extortion-Care when it is outright overtly stolen.
More for Government contractors.
More for Government Insurance contractors.
More for equity holders of government bailout banks.
Until >>>> Extortion-Care take.