Federal Reserve to print billions of dollars in massive shadow stimulus

Federal Reserve to print billions of dollars in massive shadow stimulus

www.rawstory.com

The Federal Reserve's policy-setting panel began a crucial two-day meeting Tuesday, poised to cast aside its long-held reluctance to micro-manage the economy in a bid to avoid a lost decade of growth.

The central bank's open market committee (FOMC) is expected to approve massive stimulus spending not seen since the depths of the economic crisis.

(visit the link for the full news article)

At the conclusion of the meeting Wednesday, the Fed is expected to announce it will resume the large-scale purchase of long-term US bonds -- essentially printing billions of dollars -- in the hope of boosting a weak recovery.

While the Fed took similar measures during the crisis, it is unprecedented when the economy is not teetering on the edge of collapse, raising protests from some Fed members who fear it is unnecessary and will fuel long-term inflation.

...

"I think that this will quite possibly be the worst mistake by the Fed in a generation," said Stephen Stanley of Pierpont Securities.

Here we go again, more screwing of the American people and the world, really. The pilfering is ratcheting up and the elites are making off with the loot, while the peasant is left holding the bag. They are doing all of this under the guise of applying band-aids to the economy that they are screwing in the first place.

The looting of the American people is moving at a much faster pace and I need not say how dire the situation is becoming.

We need to allow the market to take its course. The more band-aids we apply, the worse off we become in the long run because we are only digging our hole much deeper. It needs to get much worse before it can get any better. Also, when we throw money at the problem, we are basically giving the same scoundrels who squandered the economy in the first place, more rope to hang us with. Unfortunately, these "stimulus" measures are only giving an "out" to the elites. We are basically bailing them out, at the expense of ourselves.

We are watching a robbery take place, right before our very eyes and we are being taken for everything we are worth, which unfortunately is no longer that much.


--airspoon

www.rawstory.com
(visit the link for the full news article)

reply to post by airspoon


Sooner or later all of these "band-aids" will fall off and whats left of this country will come rushing out of the open sores. Hopefully it will flush out the crap that has been clogging this countries arteries for decades.

MessOnTheFED!

how long before the Bank of England join in..
I understand they are planing to join in the monopoly printing game.

Great thread.
In all honesty though, does this really matter?
What I mean is this:
The average American has no clue what the Federal Reserve actually is.
Let alone what they do with our money.
Trust me when I tell you...or go ask ten people.
I bet 5 out of 10 will snuff their noses at you in disgust.
If the subject has nothing todo with sports or the Jersey Shore, they just don't care.

So yes, the Fed is going to print more money...
Causing hyper-inflation and a resulting crash (again) to the economy.
Just what these criminals want.

You can't keep printing money with nothing to back it up.

Even with the upcoming republicans taking Conress back, I still see a big down turn.
Then they will blame it on the republicans.

There is an agenda happening before our very eyes.
Most people are too distracted to pay attention.

They've kind of the cart before the horse there, or maybe the author of the article is confused. If true, the Fed is buying Federal debt markers, giving the Federal government cash to spend... on what? Maybe I've been snoozing, but Congress approves spending, and I haven't heard anything about another stimulus bill in the works. When you take away the sensationalism of "they're printing money!" it sounds like something that happens once in a while, regardless of what the economy happens to be doing.

Not that I'm a fan of it, but I'm starting to wonder what it would take to actually cause inflation? There's something goofy going on there, and has been for at least a decade, but I've never sorted out what it is.

Originally posted by thoughtsfull
how long before the Bank of England join in..
I understand they are planing to join in the monopoly printing game.

They already have.

I wrote the following a couple of months ago:


It has become a habit, reading about the downfall of the Euro in the daily newspaper. After years of appreciation against the Dollar the Euro has now began to fall rapidly, even though economic indicators are not all that bad. They say it is Greece that made the Euro waver, which is to some extent true, but is the fear that caused this volatility well-grounded?

The Greek economy only accounts for approximately 2,5% of the entire Eurozone economy. Therefore, one would wonder why the Greek woes have affected the Euro's stability so badly. Among the reasons is speculation, more specifically naked short selling, which in very simple terms works as follows:

Quick refresher on how short selling works. Shorts borrow a share, sell it immediately, then if the bet pays off they later buy it back at a lower price, pocket the difference and return the share to the person they borrowed it from.

Naked short selling is when an investor essentially shorts a stock that he hasn’t actually borrowed. During the worst of the financial crisis some corporate executives blamed the tactic for their companies’ plunging stock prices. In the U.S., regulators put new temporary rules in place to curb the practice in the fall of 2008. That rule was made permanent in July 2009.

Why is a naked CDS different from a naked short sale of bonds and stocks?

Buying a credit default swap in effect buys insurance against the risk of a default by either a company or country. This is essentially a short sale, since the holder profits from the contract if the entity does default. Even before that happens, the CDS holder benefits if the outlook for the entity deteriorates, because the insurance premium for that default risk will rise and the holder can profit by selling the insurance and closing out their trade.

Some investors holding debt issued by an entity buy credit insurance to protect their portfolios from such a risk, but most buying comes from investors who simply want to express a negative bet. As such, buying credit protection without owning any of the entity’s debt is a “naked” short bet. source

This explains why large hedge-funds benefit from negative news about their ''victim''. Greece is solely responsible for the weak economic condition it is in, which made them a suitable target for hedge-funds, which opened a large-scale attack on the country and the Euro, which almost caused Greece to collapse only barely averted by the EU and IMF's bail-out package.

I've often wondered why credit ratings haven't downgraded the credit ratings of the US, Japan and the UK. After all, they are not in a situation that is much better than that of Greece or Portugal for that matter. Moody's has merely threatened to downgrade the credit ratings of the UK and US while they actually did do it to smaller economies such as Greece and Spain. Do you wonder where Japan on this graph is? They are literally off the chart with enormous debt and a huge deficit.



Yet, they remain to have a triple A credit status. How, on earth is that possible? If they would downgrade the credit status of, for instance, Japan, they would never ever be able to pay off their debts and that would effectively usher in their bankruptcy. There is no need to discuss the sequel of their collapse. For the very same reason, they cannot downgrade the status of the US and to a lesser extent that of the UK. This confirms that credit rating agencies are market manipulators.

As a result, countries like Italy and Spain are made to face the consequences of their poor economic performance while others that perform as bad are deliberately protected. So we have credit rating agencies and hedge funds, which are among the important factors determining the destiny of a country. If you are on their cross hairs, you are unlucky.

The mainstream media is another important factor. As explained previously, they are used as a tool to worsen the financial woes in a certain country by increasing volatility through stirring up the market sentiment.

Especially the British and US press are guilty of deliberate rousing. This is a good example from ABC NEWS EU Turns to 'Nuclear Option' to Halt Euro Speculation

Until a couple of weeks ago, the EU had no need yet to create money out of thin air until it had no other options left than doing so with its aid package of 1 trillion Euro. The British and US economy are having a big time feasting on this news. The Eurzone is using the nuclear option is what they say... but what they fail to mention is that the US has been doing this already for twelve months with approximately $1500 billion a year and the UK does the same with $200 billion / year. They are deliberately putting the focus on Europe and hence vastly contribute to the man-made creation of the Euro crisis while keeping their own countries remain into the shadows, because if you consider the severity of the financial woes in the US and UK, it would have made more sense if we would have had a Dollar or Sterling crisis. Until a couple of months ago that was the case. The fears of a Dollar collapse where greater than ever, until they found themselves a perfect target of distraction from their own financial problems: Greece.

What they did is exactly similar to what the press did to Toyota. They have exaggerated the news so badly that no American wants to buy a Toyota anymore, whereas their recalls where not out of the ordinary. Every car manufacturer has recalls. It comes as no surprise that the traditional US car brands recently announced that they are heading into the right direction and are growing healthy again, partly at the expense of Toyota, thanks to the media hype.

Who is next? Hungary, but eventually reality will meet the Dollar as well. The financial woes in the US are bigger than ever before, the importance on a global level of its economy is known, making it only a matter of time for the Dollar to cotinue its downfall.

We made it....

Oh no, WTH, thats not the next stimulus.....

You know, I think it is.......

ARRRRgghhh!!!!!






www.youtube.com...

The question that Ben Bernanke and his colleagues should ask themselves is whether they have thought through the global ramifications of their actions, and how the strategic consequences might rebound against America itself. While America watches this circus acts, the big bankers will celebrate as they plot the next steps in the destruction of the economy, without a care even though promises of 20% devaluation of the dollar are all around the news it's not appearing in any of the mass media. They will enjoy their cocktails and cigars at the taj motel/.

reply to post by thecinic

The question that Ben Bernanke and his colleagues should ask themselves is whether they have thought through the global ramifications of their actions, and how the strategic consequences might rebound against America itself

I think they know perfectly well what they are doing, to include any ramifications, though the negative ramifications will most certainly be on us, the people, as opposed to the elites and Bernanke himself. You see, the elites are profitting from all of this. They are wrecking the economy in a manner that benefits themselves and the only losers are us, the non-elites or peasant class. We are financing this robbery, as it is at our expense.


--airspoon

reply to post by thoughtsfull


Bank of England started trying this a year or so back,but they have a fancy name for it-"quantative easing" I think it was.
But yeah they will probably do some more now the Fed have,they are basically the same "company" after all.

We don't want to call it what it is though do we-"hyper inflation"is the term we use when attempting to make some other country look bad in the media.

Weimar republic anyone?

hubpages.com...

If they keep this up you will soon need a truck to carry enough money to buy a loaf of bread...Only ever suceeds in hurting the gen.pop.while the elite get even richer,surprise surprise...

Maybe thats the plan eh folks?

Might as well throw away all that paper money in the trash, because that's what it's going to be worth

Lets play guess where the "Fed" announcement occurs....

Shall we.....






www.google.com...:.DJI&client=news


=DJ Fed To Buy $600B US Treasurys In Bid To Lift Weak Economy

*DJ FOMC: Progress On Inflation Has Been Disappointingly Slow

*DJ FOMC: Core Inflation Below Levels Consistent With Mandate

*DJ FOMC: Core Inflation Has Trended Lower In Recent Quarters

*DJ FOMC: Pace Of Recovery In Output, Employment Remains Slow

*DJ FOMC: Fed Funds To Stay Exceptionally Low For Extended Period

*DJ Fed To Temporarily Relax 35% Per-Issue Limit On Holdings

*DJ Fed Sees Average Duration Of Treasury Purchases 5-6 Years

*DJ Fed To Buy Treasurys Ranging From 1.5 To 30 Years Duration

*DJ Fed Plans To Reinvest $250B-$300B Of Mtge Proceeds By 2Q '11

*DJ Fed To Keep Reinvesting Mtge Security Proceeds Into Tsys

*DJ Fed's New Tsy Purchases Would Average $75B A Month

Try 600 billion. I'm listening to Bloomberg TV right now and they are portraying this as a good idea. They didn't speculate once on what China and Russia would do with this information, let alone what shape that leaves Europe in.

TextAt $600 billion, bigger-than-expected headline figure from the Fed. Bernanke apparently wanted a little shock-and-awe to signal great determination. Gold has come off lows, but the stock market is having a whale of time sorting out whether this is bullish or bearish.

Kinda went all out there eh Ben????

Originally posted by Silcone Synapse
If they keep this up you will soon need a truck to carry enough money to buy a loaf of bread...Only ever suceeds in hurting the gen.pop.while the elite get even richer,surprise surprise...

Like I said, in the US, at least, inflation seems to stay low, no matter what the government does. One has to go back to 1990 for an annual rate higher than 5%, and things have been on a reasonably even keel since the middle of Reagan's first term. Compare that with the swings that we saw in the 1940s and 1950s. (See www.inflationdata.com... for historical data)

Anyway, think about it. Hyper inflation is something that the "elites" would want to avoid at all costs. Most bloodbath revolutions take place as a result of famine -- natural, manmade or perceived. If bread costs a hundred dollars a loaf, there would be severe ramifications that no one in power wants to contemplate.

Ya gotta see this, NY Fed statement, just released....


It'll grab ya by the shorthairs....




www.newyorkfed.org...

Bernanke and his minions will be celebrating the hundredth anniversary of the meeting that started the Federal Reserve on Jekyll Island.The dollar in that time has lost more than 95% of its previous value, BTW.
So, the dollar is the new penny, pennies are almost too expensive to mint (they were close to being melted at face value before being changed to a zinc-copper alloy).What are they going to make it out of now silver?

I see a stark contrast in how the traders feel about QE2 and what is being reported in the news. Bloomburg, before Bernanke's speech this morning, said that traders were excited about QE2. In an interview with one of the traders in the pit, it was mentioned that they wished the Fed did less and let the Market correct itself and that the aftermath of this will cause more problems. Duh, if you're purposely crashing the system through, it's a good move. Way to go Bernanke!

I just want to take this time out to point out my new avitar (compliments of bigfatfurrytexan).

Im pretty sure this post is iffy on the on topic/off topic guide lines, but I still believe it fits the cituation at hand perfectly.

MOTF!