Posted on 10/21/2013 7:50:18 AM PDT by Nachum
The Federal Reserve will increase its monthly bond purchases not decrease them, says Marc Faber, publisher of the Gloom, Boom & Doom Report.
"The question is not tapering. The question is at what point will they increase the asset purchases to say $150 [billion], $200 [billion], a trillion dollars a month," Faber told CNBC.
The Fed is now buying $85 billion of Treasury and mortgage bonds a month in what's known as quantitative easing (QE).
When the Fed first started buying long-term bonds, in what was called QE1, it initially said the program would last six months. But it started another round of assets purchases, and then another, without setting a firm ending dated. That's why the latest reiteration of the program is called QE Infinity.
"Look, every government program that is introduced under urgency and as a temporary measure is always permanent," Faber explained. "The Fed has boxed itself into a position where there is no exit strategy."
The continuing QE is counterproductive, he noted, stating benefits flow only to a limited number of people.
(Excerpt) Read more at moneynews.com ...
The Fed said spend a trillion bucks a month but I say double that again
I’m not working for the clampdown
No man born with a living soul
Can be working for the clampdown
Kick over the wall ‘cause government’s to fall
How can you refuse it?
Let fury have the hour, anger can be power
D’you know that you can use it?
— The Clash
I agree. All I can say is: “Go for it!”
It’s all full of air and ready to burst. That’s why I have everything in other assets right now.
This is the economic bomb that 0bama is leaving the next administration.
Yeah, it’s planned.
Wow, wow, wow!
The total debt including unfunded liabilities is around $211 trillion. I was guessing that by the end of the Impostor’s term in office it could be up to about $1 quadrillion. I think I might have underestimated that number.
And I thought Zimbabwe had problems with their currency.
I say just let the train go off the tracks and lets get it over with. Print, print, print. Lose our reserve currency status, total collapse baby.
This is ultimate buy off for the 2014 elections. I’d expect to see SNAP, TANF, Section 8 increases in every possible Republican Congressional District that is remotely vulnerable to Democrat take over. Those places are about to deluged with Democrat largess.
If this is true, we are at the final battle stages and they, Obama and his lapdog Fed, are throwing out all the stops. Such recklessness is only meant for one thing - complete devolution and takeover. The underlying unaudited Fed debt will cause our complete economic collapse.
One wonders if Obama, knowing all this and the complete collapse that is coming has made the appropriate preparations to keep his power amidst the real potential to be taken over by more than a few outside elements besides the Muslims he intends.
He is sailing pretty close to the wind. The right domino falls and crap meets fan will happen before 2016.
Without being darkly conspiratorial, I'm not 100% convinced this bunch plans on leaving in January of 2017 anyway
The exponential numbers are coming! The exponential numbers are coming!
This just in: "Faber now says Fed might hike QE to $2 trillion daily."
“Without being darkly conspiratorial, I’m not 100% convinced this bunch plans on leaving in January of 2017 anyway “
They will rule over a tanked world. Being in my 40s, now is the time to make retirement investment decisions so as to be ready in 30 years, but these clowns are making it really difficult.
Take the cash, leave the wheelbarrow.
Bull.
This is a convenient excuse to keep doing what they have to keep doing. And the BS "shutdown" didn't cause any growth disruptions. There isn't any *real* growth.
A Bloomberg News survey of 40 economists indicated the Fed will decide to reduce its purchases to $70 billion a month in March, to $25 billion by July and end the purchases in October 2014.
40 highly delusional "economists". Graduates of the Baby Doc School of Economics, no doubt. More likely, they are afraid to say the truth out loud for fear of setting the dominos falling.
Good luck. I’m 62 and have given up any hope of fully retiring. Which really wouldn’t be that bad if the government wasn’t hell bent on destroying the economy and with it my client base.
I will likely be in the same boat, that is how much confidence I have in things. :(
Why can’t FedGov™ print what they want and leave me alone. Why tax me AND print money? It doesn’t make sense.
The QE money given to the banks, by the Fed, is being put into the stock market, not back into the economy. That’s why:
1. The stock market is doing well
2. Inflation has not skyrocketed
3. The economy, and the job market, still sucks.
The banks are making a fortune running up the markets. But if and when the QE stops, the markets will crash like a leaky sailboat in a typhoon.
Where is the guy in waist deep water and a floating beer cooler?
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