Posted on 09/26/2012 11:07:25 AM PDT by mojito
The latest round of extraordinary Federal Reserve stimulus is risky and leaves little room to maneuver....
(Excerpt) Read more at realclearmarkets.com ...
"They are the market, there's no market left."
Many expected it to come apart before this happened.
Sorry for the exaggeration.
Ben is a little rascal.
$85B/mo is $1020B/yr aka $1T/yr. That’s about half the deficit.
Last year the Fed purchased 75% of the Treasuries printed by Timmy Geitner.
75%!
So, we print money and buy Treasuries.
We’re buying from ourselves. There’s no way this can work.
No way.
-Rex
It will “work” for a while.
There will be something that looks like a recovery - the stock market will go up, and maybe even the economy will look like it’s improving... for a while, maybe 2 yrs.
QE4ever has given preppers a couple more years to get ready,
but the crash is going to be worse than ever.
we’re not buying from ourselves.
our children are buying them.
-
just like that school system that borrowed the 1 billion,
with no payments for 20 years.
-
entitlements are sacred, because seniors vote.
but stealing from children?
easier than taking candy from a baby...
One day a US oil company will present dollars to purchase oil from Saudi Arabia, Russia, Indonesia, Nigeria, or Venezuela. The seller will refuse to take dollars and will demand payment in gold, Chinese currency, Russian currency, Canadian dollars, or the Euro if it still exists. When that becomes known, the value of the dollar will plunge, interest rates will skyrocket, people will run to the bank to withdraw their deposits, and hyperinflation will ensue, destroying the US economy.
Expect if Romney wins, the tipping point crisis event will happen early in his first year and the collapse will be blamed entirely on him and the “conservative” Republicans. If Obama wins, the crisis will be delayed until the second half of his last term so a national emergency can be declared and elections suspended for the duration of the crisis. A new Constitution will be written and adopted by the states to enshrine permanent dictatorship.
“The nonpartisan Congressional Budget Office projected Wednesday (8/22/2012) that the deficit for 2012 will run $1.1 trillion, the fourth year in a row the shortfall will exceed $1 trillion.
The projection is down a bit from an earlier estimate pegging the deficit this year at $1.2 trillion.”
This thought occurred to me several months ago. With Ben’s ZIRP policy, how is this in reality any different than the Congress creating it own money?
Thought the deficit was about $2T. [shrug] Depends on how you squint at it perhaps. A trillion here, a trillion there, eventually you’re talking about serious money.
Actually the link helps. My favorite Leftist was disputing Mitt’s claim the Fed is buying 75% of Treasury bonds. Nice to see the CBO confirm it’s really about 100%.
I think you are right, Obama's plan, to the extent he has one, seems to be to dissemble, divert, and delay through the election and then exploit the deluge to complete the "transformation."
Buying its own T bill with paper money it prints with no revenue behind it. Paying a credit card with another one
We are in the last stages of an over leveraged ponzi economy driven by a severely abused fiat currency system. When the dollar ceases to become the world reserve currency (thanks to Ben and the political sock puppets refusing to take their medicine) it is game over. Total monetization of debt by a country is them going all in in Texas hold em with a pair of 2s. Total desperation.
Awesome.
You take a bucket to the deep end of the pool. You fill up the bucket with water, and then proceed to the shallow end of the pool. Pour the bucket of water in the shallow end. Now, please note how the shallow end is getting deeper, and the deep end is getting shallower.
Tah-Dah!
OMG.
In other words we are just printing money. Too bad we cant all just buy our own debt.
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