Posted on 03/18/2009 12:33:21 PM PDT by TenthAmendmentChampion
Boas kill by suffocating.
What the Fed is doing here is not eating its own tail, it is suffocating us under mountains of what will be worthless fiat money.
Precious metals sure bounced up on the news!
Scene. Around 2040. Senator Gore, Jr, Royal Barge being pulled up the Potomac to the vast family estate.
Bargeman puller; "I remember my parents telling me of the times before the permante national emergency. Sounded real nice"
2nd Barge puller; "I just wish my parents hadn't sold me to the Gore family for money for oats. But, we were starving."
>> Someone called this the “snake eating its tail.”
Law enforcement authorities call it something else: kiting checks.
Ben Bernanke can do it on a breathtakingly large scale and get away with it.
If you do it on a relatively teensy scale, however, YOU will go to jail.
Hey semantic... I thought there was “no way” Bambi ‘n Ben would dare to employ quantitative easing! (And don’t get all “semantic” on me :-) ... that is EXACTLY what this is.) Sort of throws a wrench in the “starve ‘em out” machinery.
The other way they “purchase” is to print new money. Since our money has no precious-metal backing, it is only as valuable as people consider it to be. The more they print, the less value each dollar has, the more prices go up. Since their stated goal is to increase liquidity in the economy, this must be their method.
For a few months now I've suspected that the goal is to ruin the US dollar in order to push for a UN Ministry of Economic Management and a global currency through the World Bank.
This combined with everything else that is happening is, unfortunately, serving as further evidence that my worst fears are coming true.
If someone can prove me otherwise, please do. Please!
http://en.wikipedia.org/wiki/Quantitative_easing
The term quantitative easing refers to the creation of a pre-determined quantity of new money ‘out of thin air’[1] through open market operations by a central bank as the start of a process to increase the money supply. This new money is injected into the private banking system when the accounts of the vendors of the securities purchased by the central bank through the open market operations are credited.
This was a new term to me. Thanks!
Excellent!
But you left out the 75% APR.
So, the government is borrowing from itself?
The comments at the website indicate the vast majority of market watchers agree. No telling what the vast majority of American Idol watchers think. Perhaps they are happy investors have lost so much money.
Good link. Will cross reference.
np - different takes/spin on it..
This is the beginning of monetizing the debt. Hello inflation.
If the Fed buys $750 billion in CMO's and they default, what happens? I think they can cover the loss by just printing more currency. How does this work?
So the Treasury sells bonds..which the Federal Reserve buys up (and we the taxpayers are supposed to pay them back at interest-eventually, in theory..), Where does the Federal Reserve get the money to buy the Bonds, from Treasury (newly printed-or created out of thin-air I presume) which then lends it to Federal Reserve to buy it’s own bonds (I guess they would lend it at the same rate at which the bonds yeild to Federal Reserve-”balancing it out”? The only thing new out of this is the new “money”..
Am I correct?
Saw that, and said I’m glad I’ve been doing the bit I can as my hedge against inflation...Our country is being managed by idiots.
If they do... please let me know! I’m really rattled about this action.
That link didn’t work for me. Try this one, everybody:
This is scary. Inflation with stagnation on the way?
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