Posted on 11/01/2010 3:06:45 PM PDT by ilovesarah2012
Federal Reserve Chairman Ben Bernanke is pushing for another significant round of “quantitative easing” – now dubbed “QE2” by Fed observers – on the grounds that the economy’s response to simulative macro policies since 2008 has been anemic. What the economy needs, this thinking goes, is some inflation. While much of the public sees the run-up of growth in government and exploding deficits as keys concerns, Bernanke, continuing his soft stance on deficits, has argued that fiscal restraint would threaten the recovery. Instead, he argues that monetary policy still has arrows in its quiver that should be used to lower the unemployment rate and rejuvenate the economy while also preempting the dreaded prospect of deflation .
Chairman Bernanke’s October 15 speech on “Monetary Policy Objectives and Tools in a Low-Inflation Environment” at the Boston Fed Conference argues that deflation will seriously handicap implementing countercyclical monetary policy given the zero bound on nominal short term rates. The Fed’s current (and implicit) inflation target of 2% is meant to ensure adequate maneuverability for Fed discretionary monetary policy. (Why we need monetary policy or a central bank at all is a topic for another day.) And according to some insiders, Bernanke and his supporters in and beyond the Fed seek an inflation rate in the 4-6% range for just “a couple of years” (see Allen Mattich.).
(Excerpt) Read more at csmonitor.com ...
The military has an acronym which is exactly analogous to QE2: BOHICA.
Bend Over, Here It Comes _Again_.
They have already destroyed my stocks , now they want to inflate the money and destroy my savings that are earning the exhorbitant sum of 1.5%.
Just take everything I have and feed and clothe me. That is the real plan anyway—Socialism.
*shrug* — Convert your savings to Lead and Copper... then you can “give it to them” when they, as they will, try to take it.
I’m “all in” on inflation.
Pulled all the equity out of my house that they would lend me and borrowed sub 5% fixed for 30 yrs.
Inflation is one thing that Turbo Tax Tim, Helicopter Ben, and Ghoulish Goolsbee probably will be able to make happen.
QE is an invisible tax. It takes the value of your money.
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