Posted on 06/22/2011 9:55:24 AM PDT by Free Vulcan
WASHINGTON (MarketWatch) — The Federal Reserve on Wednesday said it was surprised by the recent weakness in the economy but that the recovery would pick up later this year as it kept interest rates at historic lows and said a controversial bond buying program would end as planned.
The Federal Open Market Committee of the Fed said the moderate pace of growth and the weaker labor market were weaker than expected. The FEd said it expects inflation to subside as past energy prices and other commodity prices moderate.
The statement came as the FOMC said it was shifting policy to hold by allowing its $600 billion bond-buying program to end as scheduled on June 30.
(Excerpt) Read more at marketwatch.com ...
“surprised”
yeah, right
watch for the contraction of the money supply....this is what will drive us into depression...
I think the Titanic would be a better name for it than QE2.
OK...what is everyone's take on this? I hear so many other things for various other sources which indicate the apocolypse is upon us...depression...etc. "Worse than Greece." And yet...the Fed is saying we should start growth later this year.
So...in everyone's opinion: Is this just a lie to keep the wheels on as long as possible? I mean...they don't have a very good track record with their forecasts...but...would they really paint this rosey a picture if they truly expected the wheels to come off?
I'm confused.
Screw the Fed. Until the Fed opens their books entirely and go through a serious audit; their nothing more than a greedy bunch of liars.
“The Federal Reserve on Wednesday said it was surprised by the recent weakness in the economy...”
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1) An anti-productivity RaceMarxist in the White House.
2) National debt at historically unprecedented levels, with utterly unsustainable, new Communist programs adding highly incendiary fuel to the already out of control fire.
3) Sustained and incredibly high levels of unemployment
And they’re “surprised”?
Do these useless Ivy Leaguers issue these puerile statements before or after their finger-painting/afternoon nap sessions?
Hyper inflation will then come next. It was QE 1&2 that artificially kept inflation in moderately slow growth. (They also kept interest artificially low by manipulating the banks)
The problem now is, the value of the Dollar, due to the massive deficit, will keep going down. Higher interest on the debt is also coming, higher interest will kill investment and consumer spending.......
So begins the whirlpool to economic hell!
OK...what is everyone’s take on this?
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Keeping it simple:
They MAY be some “upticks” in “the economy” in the short term.
Long-term we are f*&#ed. Simply stated, there is no easy way out of the decades of irresponsible fiscal policy. Zero is just the decadent, high calorie dessert which will finish us off.
The best thing we can do right now is to harvest our tremendous energy reserves and make them available to the world....oh and to OURSELVES as well. With that tourniquet in place, the hard, relentless work of disassembling the socialist state can begin in earnest.
watch for the contraction of the money supply....this is what will drive us into depression...
The Democrats need to be triangulating towards the 2012 elections. Their party's future is possibly at stake. In the 2012 elections, they need a sustained afterburner kick to the economy starting about (I would estimate) March and lasting through November of 2012.
That would be a good time to deploy a QE3. However, it implies a 9 month economic wandering in the desert until that time.
Grab a person on the street-- especially women, who traditionally are not interested in either politics or economics-- and talk about QE2 with them. Their eyes will glaze over in about 10 seconds. Peoples' social peer groups have no understanding of stuff like "contraction of the money supply" and what it would mean for their everyday lives. They are mostly focused on the next payday. The politicians and financiers are aware of this, of course. When push comes to shove, they will depend on it. (Consider the California budget that just passed the Democrat-dominated state legislature.) I look forward to a bunch of QE's with periodic breaks to let the political dust settle, until we become another Argentina.
I ask this (and this is why I really want to have a serious conversation...not one that centers around naem calling or anything else...but one that deals with the acbsolute facts) because we are a prepping family...and I really want to know how fast I shold be prepping. We are moving along at a good clip...but should I accelerate it?
I hear so much info...read so much. I hear one thing that says we probably have 8 months untill the wheels come off...I head something else that says a year...then these guys come out and say all is fine.
Perhaps a plan for a QE3 to be deployed just in time for Christmas shopping... let's see, that would be early November 2011... and lasting one year instead of 6 months... let's see, that would be early November 2012. This presumes that the Democrats are motivated as a social group by social group self-preservation... which I think is fairly in evidence... and that the Fed will play ball (or is controlled by the same folks who control the Democrats)...
(Too cynical??)
As long as there is weak objection to the fed’s idiotic statements they will continue to be idiots.
Haven't they thrown enough money at their wealthy pals yet?
"The Republicans are fixating on the budget deficit and it's a serious problem," Durbin said.
Here is the plain, unvarnished truth: These people don't have the slightest clue about the damage they are doing to US citizens and to the nation itself.
What's more - they don't care.
Their egos are so large they cannot admit they are making the situation worse, not better.
More like inflation and savings destruction.
They’re implementing Economic Repression.
Get into supply side economics to preserve wealth. Produce consumables, start a business, buy commodities, etc.
The sad (and scary) thing is, it is pretty much impossible to pay back any of our debt. The best we can hope for is to be able to service it, i.e, keep up with the interest payments.
None of that $14 trillion, which we continue to add to, will ever be paid back.
I hope that there is no further quantitative easing but I'm afraid that the situation in Europe (Greece, Italy, Portugal, etc.) will demand US bailout. The only way we could bail out banks/governments in Europe would be to take on more debt ourselves, and then monetize the debt. Hence, I wouldn't be surprised to see the Fed printing more money by September.
I am not an econiomist ( but i did sleep at a holiday inn express ) but here is my opinion....fubo has the hoover/roosevelt playbook, and is running it step by step..this includes all the restrictions on business and industry. the massive expansion of the money supply is a prelude to a massive contraction of the same. If the fed does a slow controlled contraction, then the current recession will be allowed to run it’s course, and after about another year to 18 months, it will be over. If they put a chokehold on the money supply, like they did during the depression, then even your silver and gold will be useless....cash will be king, and not many people will have it.... in conclusion, watch the money supply....if it starts to shrink real fast, cash out and put the money under your mattress....
“The sad (and scary) thing is, it is pretty much impossible to pay back any of our debt.”
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China, who I believe holds about 1-2 trillion of that impossible to pay back debt, understands this. They view us as their enemy, and are willing to play the dangerous game of giving us enough rope to hang ourselves.
However, they are hedging their bets by acquiring American assets: For example they don’t buy our soybeans, they buy our soybeam farms.
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