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To: expat_panama
When was there a time that the Fed did not print money?

The AMOUNT of dollars they continue to fuse into the market is what has already, and is continuing to create inflation in the economy.

They have for two years now printed money that has been used to BUY 80 to 90 BILLION dollars worth of bonds and T-Bills a MONTH. They now have incurred a 4.5 TRILLION dollar deficit balance sheet doing this.

To put it simply: They have pumped this money into the stock market by buying these enormous amounts monthly and that is what has kept the market propped up.

This article from the Heritage Foundation from the Spring of this year pretty much shows the FED has painted themselves into a corner and has really NO choice other than to keep printing INFLATIONARY dollars to keep the "house of cards" standing.

Quantitative Easing, The Fed’s Balance Sheet, and Central Bank Insolvency

http://www.heritage.org/research/reports/2014/08/quantitative-easing-the-feds-balance-sheet-and-central-bank-insolvency

21 posted on 10/19/2014 9:41:39 PM PDT by VideoDoctor
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To: A Cyrenian; abb; Abigail Adams; abigail2; AK_47_7.62x39; Aliska; aposiopetic; Aquamarine; ...

--and a happy Monday morning to all!   While futures traders may be seeing most commodiites falling (grains are down a percent) they got metals up a tenth and stock indexes are up two tenths of a percent.  Can't wait for the day to begin --no major econ reports today, I mean, what could possibly go wrong now? 


22 posted on 10/20/2014 3:51:39 AM PDT by expat_panama
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To: VideoDoctor; Vermont Lt
the FED said they will continue to print money...   ...to keep the “rigged show” going.

When was there a time the fed did not print money?

Before 1913?

Exactly!  It does not make sense to think money printing that began over a hundred years ago suddenly caused the "rigged show" to begin a rally last Wednesday.

...pumped this money into the stock market by buying these enormous amounts monthly...   ...http://www.heritage.org/research/reports/2014/08/quantitative-easing-the-feds-balance-sheet-and-central-bank-insolvency

The Heritage people did a great job of listing Fed's purchases of T-bills, mortgages, and bonds, no common stocks were purchased.   Here's how the stock prices moved along w/ QE:

The idea that QE is 'rigging' stocks is just not there.  In fact, it would be easier to argue that QE hurt stocks.

27 posted on 10/20/2014 4:57:43 AM PDT by expat_panama
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