just exactly HOW does buying bonds put people back to work???Until they stop free trade with low wage countries, unemployment is going to be high.
If they trash the system enough, maybe everyone will just give up entirely and we can get the unemployment rate down to 0%.
These guys must know what they are doing - they went to Harvard.
>> will purchase $85 billion in bonds every month until unemployment falls from its present 7.7% to 6.5%.
As If there is such a cause-and-effect relationship...
reminds me of that tee shirt humor: “The beatings will continue until morale improves”
I was starting to worry about the wisdom of shifting to hard assets in anticipation of inflation. Not so worried now...
Just have the Fed buy all $16 billion of the debt and then forgive it.
It’s all so simple.
It’s the progressive way of doing things ... doubling down on stupid!
The following quotes are only a few on the subject from essays on the subject in "Our Ageless Constitution". Dr. Edwin Vieira, who contributed to that volume, also has written extensively on the Founders' protections for liberty through their provisions for a sound money system. A search of his many published writings might enlighten those who would like a better understanding of the dangers of fiat money.
Thomas Jefferson: "Paper is liable to be abused, has been, is, and forever will be abused, in every country in which it is permitted."
". . . although the other nations of Europe have tried and trodden every path of force or folly in fruitless quest of the same object, yet we still expect to find in juggling tricks and banking dreams, that money can be made out of nothing. . . The misfortune is. . . we shall plunge ourselves in unextinguishable debt, and entail on our posterity an inheritance of external taxes, which will bring our government and people into the condition of those of England, an nation of pikes and gudgeons, the latter bred merely as food for the former."
"Stock dealers and banking companies, by the aid of a paper system [paper money] are enriching themselves to the ruin of our country, and swaying the government by their possession of the printing presses, which their wealth commands, and by other means, not always honorable to the character of our countrymen."
Then there is John Maynard Keynes observation in "The Economic Consequences of the Peace - 1920":
"Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. . . . Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. . . . (It) does it in a manner which not one man in a million is able to diagnose. . . ."
All these financial gimmicks can never create real wealth or prosperity. Three generations of deficit spending, huge and growing debts, unfunded entitlements and government policies such as a bizarre, anti capitalist EPA spewing business killing regulations will never be ameliorated with more borrowing and dollar printing. Bernacke is the Prince of Paper and will be remembered as the worst individual ever to hold high appointed office in American history. Obama of course is the greatest borrower, spender and squanderer of any President to date.
Que bono?
Ah, I understand: by expanding the money supply by 85 billion a month (that’s a trillion a year), they devalue the dollars current employed people get paid, freeing up funds for more employees. Genius! And as a bonus, everyone gets pushed up into higher tax brackets!
It’s so fun falling to socialism! Wooohooooooooo!
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
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.
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.
A trillion dollars a year.
Brilliant! /s
When did they announce that unemployment was down to 7.7% ?