Posted on 12/16/2008 7:38:18 AM PST by Halfmanhalfamazing
When the Federal Reserve policymakers decide on interest rates Tuesday, investors will probably look one step beyond their decision, to gauge how much money will the Fed be willing to print once it is out of rate ammunition.
Rates won't likely hit zero Tuesday, but this could be unavoidable in the near future, according to strategists and market experts.
...
Printing Money
The Fed has already moved on from using interest rates as a monetary policy tool and the next fed funds target rate after the Dec. 16 meeting is "almost academic," ING economist Rob Carnell said.
The Fed's balance sheet has expanded to more than $2 trillion, made up of collateral received in exchange for liquidity provision, or loans of Treasurys.
"In our view, this is, for want of an alternative description, 'printing money'," Carnell wrote in his research. "And our assumption is that there is more of this to come."
(Excerpt) Read more at cnbc.com ...
Devaluing the Dollar, hurts those with the fewest the most. Not a good policy for anyone.
Hyperinflation here we come! Break out the wheelbarrows, boys.
Yup.
Problem is, what’s left as a safe haven?
Gold in hand? Not exactly liquid down at the five and dime...
Can someone explain to me what this means? In simple terms because I’m coming to grips with the fact that I am a moron on this economic mess.
That would be my assumption too.
Food.....
Zimbabwe prints money in order to buy away it’s problems.
Money is subject to the same laws of supply and demand that any thing else is.
What it means is that the more money they print, the more worthless it becomes.
The Dollar is literally not worth the paper its printed on!
Of course, this is simply a symptom of a greater problem, which is out-of-control government spending. That's what we should be talking about. And the drive-bys are talking about everything-else-but.
Pathetic.
I'll use my first wheelbarrow to pay off my house, that ought to make the bank happy.
Yet bond yields keep going down.
That’s kind of what I figured. I told my friend yesterday if they print two dollars, then the value of one dollar will be two. Or something like that. I think I have it in my head, I just can’t explain it very well.
I do remember seeing a pile of German money that was worth one American dollar. That’s the only thing I can relate this to.
On 28 July 2007, it was reported that Mugabe has said that Zimbabwe will go on printing money if there is not enough for underfunded municipal projects.
This is a picture of Zimbabwe's $100 billion banknote with the number of eggs it could purchase on its release date.
The money supply in Zimbabwe as of June 2008 was more than 900 Quadrillion.
All unnecessary spending must stop immediately - including billions we are sending to foreign countries. No more pork. No more give aways. Tighten our government’s economic belt and work our way through this.
Yes, there are many, many nations in the world who have decided to cut their taxes instead.
If you have a sick economy, you fix the economy. Tax cuts are one way to do such a thing.
China, France, Sweden, Germany, and many other places are doing just that.
You don’t just print money, that doesn’t solve anything! It only creates hyperinflation.
Had they done this NOW (ie, December), the rich people wouldn't have gotten a break on the FICA because they've already maxed out.
You have it about right.
I often times bring out the old stories from the weimar republic as an example. People with wheelbarrows full of money just to buy one or two loaves of bread.
100 Billion dollars for three eggs. Sounds about right.
Wow.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.