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 ...
A trillion dollars a year.
Brilliant! /s
When did they announce that unemployment was down to 7.7% ?
It’s the Obamacare solution. Making the problem bigger will solve everything. Let see they done it to Healthcare, To Big to Fail Banksa and now Federal Debt.
“We’re not going to see 6.5% unemployment ever again. ‘’”
Cut the unemployment benefits back to 26 weeks and the fake number should go below 6.5%!
“Just have the Fed buy all $16 billion of the debt and then forgive it.”
No, just cancel the national debt and stick everyone holding a US bond!!!
You can eliminate all taxes and all regulations and we still can’t compete with $2/day labor.
Communist China taxes their firms 90%. That’s why they don’t buy much from us. The Chinese government takes it all and then buys our debt or worse buys more firms to dismantle and ship overseas.
90% taxes aren’t keeping them from being competitive, because the labor rate is so low.
Better include the entire Ivy League and a few other of our most 'prestigious' universities, just to make sure. Their grads infest every branch of government and our largest financial institutions, and have played major roles in the decisions that have brought this nation to it's current sorry state.
I can't imagine what this shell game will do to the dollar but I don't see this creating jobs.
The Bernank can’t afford to let the economy grow, not with all the toxic global debt on his books. Inflated rates would wipe him out.
“Bernanke is nuts.”
I find it ironic that Bernanke, who seems determined to destroy the dollar, was appointed by the “conservative” George W. Bush. The same Bush who over 8 years went from balanced budget to doubling the deficit accumulated over the entire history of the nation.
In contrast, Paul Volker, the Fed Chairman who invoked the tight money policies that ended double digit inflation in the early 1980’s was appointed by the liberal Democrat Jimmy Carter.
The irony is the Democrat appointed Volker worked with Reagan to restore sound money and a vibrant economy while the Bush appointed Fed chair seems intent on working with the socialist Democrat president to destroy the currency and the economy. Bernanke is part of the disastrous economic legacy of the faux conservative Bush.
7.7% is an outright lie, and 6.5% is a pipe dream.
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.