Faber: Fed could up QE to $1 trillion a month

Yahoo Finance ^

[Red in Blue PA]

"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 said in a " Squawk Box " interview. The Fed-which is currently buying $85 billion worth of bonds every month-will hold its October meeting next week to deliberate the future of its asset purchases known as quantitative easing . (Read more: Treasury yields will still spike to 5%: Societe Generale ) Faber has been predicting so-called "QE infinity" because "every government program that is introduced under urgency and as a temporary measure is always permanent." He also said, "The Fed has boxed itself into a position where there is no exit strategy."

[fhayek]

I am shifting my holdings from U.S. dollars to Zimbabwe Pistados tomorrow.

[svcw]

Just reading that paragraph makes me ill.

[Cringing Negativism Network]

I got a perfect “exit strategy”.

Make things right here in America.

Buy American.

[rdcbn]

Back in April 2012, Faber said the world will face “massive wealth destruction” in which “well to-do people will lose up to 50 percent of their total wealth.”

---

I'd settle for 50%.

Faber is an optimist.

[glock rocks]

bonk!

[willywill]

I wished America would wake up. in the first place, does anyone believe that alan greenspan, ben Bernanke, janet yellen, have any love for America? at best, they are looking to enrich their new york friends on the backs of the Christian middle class. at worst, they are part of a plan to usher in the so called new world order.

[Paladin2]

The Fed should print up enough money to either buy or bring pressure to bear on 6 SCOTUS, TOTUS and most of Congress to get America back on a growth path by getting the gov’t out of the way and incentiveizing 1/2 of the 1/2 of America that chooses to be on the dole.

[eclectic]

Faber is full of it.

[GeronL]

Weimar Zimbabwe

got my wheelbarrow ready for those bread lines

[Excellence]

The punishment will continue until moral improves.

[musicman]

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[fhayek]

Listen. Here is the game. We pay, what, $300 billion in interest on the debt. That is with historic low interest rates. If interest rates ever revert to average interest rates (around 6.7%) we would be paying nearly $1 trillion in intest every year. To keep debt service low and keep an expanding economy (albeit an anemic one) Obama needs to keep a very low interest rate. He can do this in the short term (read: his presidency) by having the Fed buy up the debt that foreigners just won't buy. He is about into deck five of his house of cards on this one.

[lurk]

And, like much of the news these days, it reads like satire, but is not.

[Gabrial]

Well put.

[Robe]

Get out your Monopoly money , it worth more

[Conspiracy Guy]

I’ve invested all my money in plastic. I have 200 tons of it.

[onona]

freaking scary

real stomach lurching scary

Real, holey crap I'll never have enough arms, ammunition, and auguson farms scary.

[Venturer]

LOL Asset holdings.

The Bonds we are buying are as worthless as the money we are buying them with.

They are not an asset they are merely paper too rough to wipe your butt with.

[fhayek]

$12 trillion new dollars added to the economy every year. $12 trillion. GNP is what? $15 trillion? Do they think that worldwide holders of dollars will not notice this? When there is a global sell-off of U.S. dollars, and the treasury has to offer interest rates of 15-20% just to stop the panic, do they not think that this will have catastrophic effects on the world economy?