“...promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.”
Seriously, you think this is what QE3 is doing? Get real. It will do little or nothing for employment. If it creates jobs, they will be minimum wage and part time. Commodities are going to soar while salaries remain stagnant or depressed. Interest rates are going to remain artificially low for as “long-term” as they can suppressed, and still have a dollar worth more than the paper they are printed on. Meanwhile, the large banks that are still holding billions in bad mortgage debt get another reprieve for their part in all this corruption. Excuse it anyway you want. Bernanke is a thief, and creating more debt to feed the habit of debt isn’t a cure. It will be the thing that kills us.
I think it is much more than just bad mortgage debt. I think the securitization process itself, with the systemically associated loss of original titles, notes and failures to file county property transfers is at the center of all the mortgage mess. The focus on fraud in foreclosure proceedings with “settlements” achieved, simply serves to COVER UP the original fraud, the destruction of the paper trail that is necessary for maintenance of the legal legitimacy of all property, inherent in the securitization process of creating the mortgage “backed” securities that the Executive Branch of govt. holds in the trillions (Fed, Fannie, Freddie, FHLB, FHA, etc). These MBS’ are not only associated with debt, they have no legal standing ina court of law because of the absence of producable title transfers, note transfers. The fraud inherent in the securitization process has been hidden all along.
All “transactions” after the securitization process with destruction of original titles and notes are fraudulent. The rating agencies (S and P, Moody’s, Fitch, et al) all assumed that legal processes were followed systemically in the securitization processes...they were not followed..systemically.
The mortgage processors could not fill waiting orders for tranches of Mortgage Backed Securities if they did title transfers, note assignments for each mortgage, and county registrations can take months. It was practical to destroy the legal standing of the mortgages for all time by simply committing fraud by omission rather than follow due process. What has been created with each mortgage in the securitization processes is, in legal terms, a new entity...”NON-PROPERTY”. It is a crime.
THe first right protected by the Constitution is the right of property. There is no legitimate reason for the Constitution if there is NO PROPERTY. The de facto creation of “NON-PROPERTY” destroys the Constitution and its relevance to our very reason for being as a Constitutional Republic, and mortgage backed securitization is the model used today. The mortgage industry has been nationalized and formerly private property, property with legal standing, is piling up on the balance sheets of the Fed Reserve and in the Agencies of the Executive Branch.
THe taxpayer is paying for it, and as the securities have no legal standing in a court of law, the public is paying, guaranteeing...”property” of no value. The Fed is buying MBSs from Fannie Mae at $40B a month..the MBS’s are worthless, and we are held ultimately accountable for the “debt”.
He's increasing the money supply, but doing it in a way that is likely to make more money available to the public as mortgage loans. He's hoping to cause new housing starts and put construction workers back to work.
So despite your impugning his personal integrity, his plan is logical in light of his congressional mandate. Construction is one of the largest industries that he can target, and one that has been hit the hardest with job losses. Manufacturing has had more job losses, but he can't effectively target manufacturing as well as he can home building. But Congress can, easily with an import tariff.
Employment by major industry sector
Now you can probably argue, and I'd probably agree to an extent, that there is a glut of housing and building more just to put people back to work doesn't make sense. But it's what Bernanke can do, and we'll grow into the additional housing soon enough. And it's at least producing real assets and not wasting the money on producing some alternative energy that was never even viable in the first place.
It makes a lot more sense to look at where we are spending our money, that is not producing American jobs and try to get that to produce American jobs. Thus my call for import tariffs. But Bernanke can't do that. That takes Congress or the Executive.