It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

Fed ends 6-year effort to stimulate economy

page: 1
10
<<   2 >>

log in

join
share:

posted on Oct, 29 2014 @ 02:01 PM
link   
Hello ATS,

The Federal Reserve came out today and announced the end of their bond buying program that has ran the last 6 years of our lives. What we all know as Quantitative Easing is coming to an end Oct 31st of this year. So in a few short days, the punch-bowl of this awesome liquidity party that the Fed has been throwing will revert back to a BYOB party.




The decision reflects how much the economy has improved since the recession. It's akin to taking the training wheels off of a child's bike.


Source


Now some have said they believe this could cause a collapse of everything we hold dear. There has been the statement that it'll be the beginning of another great depression. Some go as far as to have said that it'll.. mean the President will suspend Elections.

Ideally, this could all very well happen. By the Fed ending QE, there is a lack of $85 billion dollars not being injected into the economy. This very well could lead to job losses, prices going up, and companies NOT hiring or creating new investment opportunities.

On the plus side, this does do one thing. It means in time, the US Dollar will be worth more, as we're not printing it like it's monopoly money at a kids board game party.

/tinfoil hat donning
This is an excellent excuse to have everything go down the proverbial toilet. Take more control, and even bring the whole country to it's knees. For 6 years the drug money dealer known as the FED, has been feeding our monetary habits without a second thought. Now, it'll be massive withdrawal symptoms as the drug is no longer available, and our dealer is saying it's time to pay up.

Might I suggest buying some extra food this week, before Friday hits. Who knows what will come Monday.

Thoughts, ATS?




posted on Oct, 29 2014 @ 02:08 PM
link   
I just keep praying that my husband's company stands firm through it. They've managed to survive as a German firm since before WWI, hopefully, that means they'll stay alive and he'll stay employed. So long as you've got an income ... there's hope.



posted on Oct, 29 2014 @ 02:09 PM
link   
Maybe their real goal was to buy up most of the toxic Mortgage-Backed Securities?

Perhaps that goal has been reached.

QE has more than one target.

Credit Easing Policy Tools



posted on Oct, 29 2014 @ 02:14 PM
link   
a reply to: xuenchen

QE didn't really do anything for anyone but the consumer banks.



The intention was great, but the road to Hell is paved with great intentions.

These 2 charts show QE worked ... for some (Source)
edit on C142101803 by Cygnis because: (no reason given)



posted on Oct, 29 2014 @ 02:23 PM
link   
I am curious if this will have a devastating effect on our economy. Maybe if you live in a few select cities the economy seems good but for some of us who live in less populated areas it continues to get worse.

Is everyone else living in a location with good economy and is it just a few areas that the economy is bad?



posted on Oct, 29 2014 @ 02:35 PM
link   

originally posted by: RunForTheHills
I am curious if this will have a devastating effect on our economy. Maybe if you live in a few select cities the economy seems good but for some of us who live in less populated areas it continues to get worse.

Is everyone else living in a location with good economy and is it just a few areas that the economy is bad?


I'd say that if you have been paying attention to your grocery costs. Your paying the same amount, or more, and getting less.

The market indicators have been questionable to bad for a while, but through various means, no one really understands. Housing is going down again, for example. But no one can get loans from these banks that have been making money hand over fist.

I certainly wouldn't take anything the MSM says about the market being "in a great recovery" as accurate. Those of us who live week to week, month to month, or paycheck to paycheck are hit the worst. Those who had savings have been hit, since there is no interest rates, savers aren't making any money either.

There was plenty of money to make on the market during QE, if you knew where to short, and where to go long. For the average person tho, it was a hell of a gamble, especially after the 2008 collapse. I know people who had money tied up in the market that lost almost everything.

I mean, here is another article to give you an idea of what the past 6 years were about.

And the Biggest Baneficiary of QE3 is....

But to wrap this post up, no, the market, and the economy is not in good shape, anywhere.



posted on Oct, 29 2014 @ 02:45 PM
link   
Didn't you post this last night/early this morning?

Why The Fed Will End QE On Wednesday.

But anyway, exactly what would could happen if this occurs? A market crash?

Personally I see it as a means to suspend the elections, keeping the current system in power, creating chaos/rebellion, then the introduction of a new, more oppressive system. But that's just me, no tinfoil on me or in the vicinity. Speculation and things have been steadily getting worse while becoming more chaotic, it's obviously leading somewhere big. A reset perhaps.



posted on Oct, 29 2014 @ 02:54 PM
link   
All I can say is you all better be prepared for interest rates to skyrocket.

Keeping QE going for so long is what ultimately will make the rebalancing so much more painful. I hope none of you have variable rate mortgages. =]



posted on Oct, 29 2014 @ 02:55 PM
link   
a reply to: Yeahkeepwatchingme

Seems with everything else going on this is not the big news in the media. I tend to agree with you on maybe a reset.




Reply from Cygnis: But to wrap this post up, no, the market, and the economy is not in good shape, anywhere.


Thanks, I was starting to wonder if I missed something and the rest of the world was recovering. My grocery bill has definitely went up.



posted on Oct, 29 2014 @ 02:55 PM
link   
a reply to: Yeahkeepwatchingme

Yes, I posted that.

Not too many people actually pay attention, at least openly, to the Fed, and the market.

I'm just bringing info to the forum group, and adding a little bit of opinion, and information for consumption.

But, i do agree with your statements in your post. I can see this as a way to gain more control, not that we the people really have control, at this point, without violently taking it back. We are well beyond the point where peaceful options will work, tho that is a topic for another thread.



posted on Oct, 29 2014 @ 02:56 PM
link   
a reply to: RunForTheHills

Where I'm staying now the oil bill was so outrageous and only 2 people were there at the time. The food bills are insane, gas is overpriced, utilities, everything.



posted on Oct, 29 2014 @ 02:57 PM
link   

originally posted by: TinkerHaus
All I can say is you all better be prepared for interest rates to skyrocket.

Keeping QE going for so long is what ultimately will make the rebalancing so much more painful. I hope none of you have variable rate mortgages. =]



I'm, personally, glad I don't have a mortgage to worry about. Having any debt at this point, is a scary thing. Especially if rates go up, or even skyrocket.

We're all so strapped, as it is. More will break the camel's back.



posted on Oct, 29 2014 @ 03:05 PM
link   

originally posted by: Yeahkeepwatchingme
a reply to: RunForTheHills

Where I'm staying now the oil bill was so outrageous and only 2 people were there at the time. The food bills are insane, gas is overpriced, utilities, everything.


Dang, sounds like you are in my neck of the woods. Hope all turns out better than they have appeared over the last few weeks. just when you think so many things are going downhill we have another problem with our interest rates.

Thanks Cygnis, I would not have known without your post.



posted on Oct, 29 2014 @ 03:12 PM
link   
a reply to: RunForTheHills

Oh, no, there are few places where things are good.

My folks lived through the Carter malaise, and all my dad could say is that the most important thing for surviving this sort of thing is staying employed. If you have an income, there is hope because you at least have some cash flow. That doesn't mean things are great, just that you have something to help you ride it out.

But we set an amount for our groceries, and we haven't changed our shopping habits. Our money stretched less and less all the time. We used to have a bit left over for an occasional extra. That almost never happens now. We're only $0.30/lb away from buying the imported Irish butter. Lots of people already are buying it because it's cheaper as a 1/2 lb in absolute terms than buying butter by the pound, but if you do the math, a pound of the imported stuff is still just a bit more expensive.



Christmas baking is going to hurt this year ... Thankfully, it's my aunt's side of the family's turn to do Thanksgiving for the family.



posted on Oct, 29 2014 @ 03:16 PM
link   

originally posted by: RunForTheHills

originally posted by: Yeahkeepwatchingme
a reply to: RunForTheHills

Where I'm staying now the oil bill was so outrageous and only 2 people were there at the time. The food bills are insane, gas is overpriced, utilities, everything.


Dang, sounds like you are in my neck of the woods. Hope all turns out better than they have appeared over the last few weeks. just when you think so many things are going downhill we have another problem with our interest rates.

Thanks Cygnis, I would not have known without your post.



And honestly, I don't know what will happen. I honestly like to prepare for the worst, and hope for the best.

Perhaps things will turn out better.. I would, honestly, be shocked, as I expect them to decline tho.

I base this simply off the fact that there is such divergence between things market, socially and economically, that it is stretched so thin, it cannot do much but collapse. This is both globally, and locally applied.



posted on Oct, 29 2014 @ 03:33 PM
link   
I have never had the extra money to play in stocks but i do know a little about interest rates. If the interest rates soar or even double that will keep most of us from borrowing which will lead to lead to less purchases. I do not know what their reasons would be to let the interest rates go up when the economy is struggling to get by.

Ketsuko, our dad sounds like a smart man. I have thought of trying to buy cream and make my own butter with the old dusted churn I have up in my attic that hasn't been used in 40 years.

Also, Not sure how big of an effect the interest rates will have on small business (I am thinking a huge impact) will they be able to keep people on payroll. The few places still open seem to be struggling to hold on as it is.



posted on Oct, 29 2014 @ 03:38 PM
link   

originally posted by: RunForTheHills
I have never had the extra money to play in stocks but i do know a little about interest rates. If the interest rates soar or even double that will keep most of us from borrowing which will lead to lead to less purchases. I do not know what their reasons would be to let the interest rates go up when the economy is struggling to get by.

Ketsuko, our dad sounds like a smart man. I have thought of trying to buy cream and make my own butter with the old dusted churn I have up in my attic that hasn't been used in 40 years.

Also, Not sure how big of an effect the interest rates will have on small business (I am thinking a huge impact) will they be able to keep people on payroll. The few places still open seem to be struggling to hold on as it is.


You don't need a churn. Go look it up online, but you can use a food processor to make it. I forget what you have to buy though, whether it's buttermilk or heavy cream. You make a good point about that. We use unsalted anyways, and when you make butter, you can compound it with herbs and seasonings.



posted on Oct, 29 2014 @ 03:42 PM
link   
You couldn't get this economy up with a bowl full a ganjika and a stack of Larry Flynts best.



posted on Oct, 29 2014 @ 03:42 PM
link   
Mr. Ponzi would be proud of the FED, the pyramid scheme fails, it always fails... embrace absurdity, its all we have left.
edit on 29-10-2014 by HUMBLEONE because: EMBRACE ABSURDITY NOW!!!



posted on Oct, 29 2014 @ 03:44 PM
link   

originally posted by: RunForTheHills
I have never had the extra money to play in stocks but i do know a little about interest rates. If the interest rates soar or even double that will keep most of us from borrowing which will lead to lead to less purchases. I do not know what their reasons would be to let the interest rates go up when the economy is struggling to get by.

Ketsuko, our dad sounds like a smart man. I have thought of trying to buy cream and make my own butter with the old dusted churn I have up in my attic that hasn't been used in 40 years.

Also, Not sure how big of an effect the interest rates will have on small business (I am thinking a huge impact) will they be able to keep people on payroll. The few places still open seem to be struggling to hold on as it is.


It also has the potential to make costs for goods and services go up even more, as the company would have to drop the cost of said increases down to the people making said purchases.

Tho, on the up-side, raising interest rates, also make it so those with money in savings accounts, actually make some money on having said money in savings. Tho I think it is up to the indivdual bank to set savings interest rates. I could be wrong on both accounts. It certainly seems like they stuck it to those who were working on their savings accounts tho, as there was such an infinitesimal amount gained.

Funny how that works, but I'm like you. Never had extra coin, even when I was making money.




top topics



 
10
<<   2 >>

log in

join