Next MSM Catch Phrase:
Quantitative Easing...what we lay-people refer to as
Printing.
I finally heard the term used on CNBC this AM for the first time, a few minutes before open. Santelli & Liesman...whoops, make that Leisman were
bantering about cratering bond yields. Santelli cited the Fed's QE regime as a potential cause. Leisman quickly replied that he didn't know what
Rick was talking about, and immediately side-tracked.
Now...should I be more concerned that Leisman (the purported CNBC Fed expert) may not be familiar with concept of QE...or with the [more likely]
prospect that he is intentionally playing possum?
The Fed could buy Treasury notes and bonds or agency bonds in a bid to drive yields lower and "spur aggregate demand," Bernanke said.
Many analysts refer to such a policy as "quantitative easing," because the Fed would target a specific amount of money to flood into
the economy.
Marketwatch
Truth is, as Santelli alluded this morning, QE is already an active policy...has been since September.....the last bullet in the bandolero short-of a
dire 1933-style devaluation of the currency.
Quantitative easing has begun
or
If inspired, you can suss the numbers for yourself:
Fed H.3
Several months back, to illustrate the severity of the [inflationary] path I believed the Fed was preparing to embark-on, I posted a few quotes & a
link to Bernanke's famous 2002
helicopter speech titled:
Deflation: Making Sure "It" Doesn't Happen Here.
"If we do fall into deflation, however, we can take comfort that the logic of the printing press example must assert itself, and sufficient
injections of money will ultimately always reverse a deflation...." *(Quantitative Easing)
"Of course, the U.S. government is not going to print money and distribute it willy-nilly (although as we will see later, there are practical
policies that approximate this behavior)." *(You can say that again)
"Yet another option would be for the Fed to use its existing authority to operate in the markets for agency debt (for example, mortgage-backed
securities issued by Ginnie Mae, the Government National Mortgage Association)." *(Quantitative Easing)
"We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation."
*(Lunacy?)
"A broad-based tax cut, for example....A money-financed tax cut is essentially equivalent to Milton Friedman's famous "helicopter drop" of
money." 
Full Text
[edit on 1-12-2008 by OBE1]
If $10,000 only buys 2 weeks of groceries, is it worth it?
MBU has a crush on Gold. 
