Thursday, November 4, 2010

Feds to Print $600 Billion in Cash for Stimulus - Suicide

The bottom line is that the Feds are pumping up the stock market (again) to make it look like a recovery is happening. We are digging a financial (debt) hole of epic proportions for our future generations to pay for. When will people wake up to the truth and stop this madness called Massive Bloated Government?

WSJ.Com Reports - The Federal Reserve, in a dramatic effort to rev up a "disappointingly slow" economic recovery, said it will buy $600 billion of U.S. government bonds over the next eight months to drive down interest rates and encourage more borrowing and growth.

Many outside the Fed, and some inside, see the move as a 'Hail Mary' pass by Fed Chairman Ben Bernanke. He embraced highly unconventional policies during the financial crisis to ward off a financial-system collapse. But a year and a half later, he confronts an economy hobbled by high unemployment, a gridlocked political system and the threat of a Japan-like period of deflation, or a debilitating fall in consumer prices.

The Fed left open the possibility of doing more if growth and inflation don't perk up in the months ahead. The $75 billion a month in new purchases of Treasury debt come on top of $35 billion a month the Fed is expected to spend to replace mortgage bonds in its portfolio that are being retired.

The Dow Jones Industrial Average Wednesday continued a climb that began in August, when Mr. Bernanke signaled that a bond-buying program was possible. The index rose 26.41 points, or 0.24%, to a two-year high of 11215.13. Yields on 10-year notes, which have fallen from just under 3% in early August, finished the day at 2.62%. The value of the dollar has fallen in anticipation of a flood of new American currency hitting global financial markets. Read More Here


Reaganite Republican said...

Enlightening... and alarming.

Linked at RR:

Enjoy your day, sir

PFFV said...

Thanks Bro, best wishes.