just exactly HOW does buying bonds put people back to work???
Posted on 12/12/2012 7:34:41 PM PST by chessplayer
In an unprecedented and surprising move, the Federal Reserve announced on Wednesday that it will keep interest rates near zero and will purchase $85 billion in bonds every month until unemployment falls from its present 7.7% to 6.5%.
The new plan will maintain the $40 billion a month of mortgage-backed bond buying it began in September while adding another $45 billion in Treasuries.
Where will the cash to bankroll the $85 billion-a-month bond-buying binge come from? The Fed plans to expand it's $2.8 billion balance sheet.
The new round of so-called “stimulus” is meant to replace the soon to expire “Operation Twist” program that shoveled $45 billion a month into long-term Treasuries funded by the sale of short-term debt. Since that effort failed to create economic growth, and the Fed has no more short-term securities left to sell, the Wall Street Journal says the Fed will “effectively PRINT MORE MONEY” OUT OF THIN AIR to fund the scheme.
(Excerpt) Read more at breitbart.com ...
When I’m appointed King I will mandate one cell phone power connector and outlaw all others.
Also, I think we should have only one screw head. Philips I think.
SILENCE!!!!!
No, star drive. After all, if you're King, you might as well have deck screws that don't strip.
Yes we will see 6.5 unemployment again. Another year or 2 of Obama’s driving out or destroying jobs while not counting the idled workers as being in the labor force any longer, and we’ll be reading about 5.5 or even 4.5 unemployment (while we’re all queued up for the dole).
LOL, yea. Actually I meant bazillion. What the heck’s the difference. It’s all make believe now.
just exactly HOW does buying bonds put people back to work???
No difference in principle from the 2T platinum coin proposal. I actually prefer the bogus coin scheme. At least it’s transparent
Memo to self: short Charmin stock
No kidding. LOL
Don’t be silly!
The way Obama’s BLS fudges unemployment numbers every week we’ll hit under 6% unemployment by spring.
I just got a new blu-ray disc...Hatfields and McCoys...
Maybe best I don't watch...ben giv'n me bad ideers.
It is the exactly like what is happening with the current economy. A little boost of cash might get it started again but flooding it with counterfeit money is destroying the true capital that is capable of reviving the economy.
Why would Bernacke want to create runaway inflation? Maybe he has been secretly laying up a personal stash of gold?
If you want to win, try this simple strategy:
Go to your local Bank, and demand higher interest rates on your account. Better yet, organize an “Occupy” style protest to demand higher interest rates from banks.
This has two advantages:
1. It has a populist appeal that is hard to argue with. Most everyone hates banks and those who save hate getting such low interest on their accounts.
2. Low (nearly zero) interest rates are the only thing keeping the Entitlement State afloat. If short term interest rates were to even rise to 4%, the Entitlement State would come crumbling down—there is no way the Government could fund it. Which is why the Federal Reserve has been pushing interest rates to near Zero.
This strategy would be far more effective than any political grandstanding that House Speaker Boner could possibly execute.
Lenin only said that because he thought it was inconceivable that the American people would foolishly elect and reelect an affirmative action Kenyan to the presidency of this country. The inmates are in charge of the asylum.
No, those were typos on their resumes. They actually graduated
from Aardvark.
Trillion, with a T.....
The only reason we don’t have a full blown depression is the huge number of families are 2 earner househoulders.
Overall employment is dropping and will continue to drop as long as these mental midgets are in positions of power.
We truly are in a "zombie" economy ... moving, but not alive.
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