Qauntitative Easing 3....open ended.
Wells here we go again. The Fed has all but admitted that the waste of flesh in the oval office is completely incompetant. For those of you who dont see a problem with this let me explain what the Fed is doing.
They are pumping billions of printed and borrowed capital into the market by buying morrgage backed securities and purchasing bonds from......themselves.
Yup. Its called monetizing your debt and its ridiculously stupid. But its all Obama knows to do. To him only government can solve this issue.
I guess third times a charm.
The more we print money the less the money in your pocket is worth. Also look for our credit rating to be down graded. Whats that mean ¿ Well if nobody buys our bonds how do we run our Country ???
SS Checks ? Nope. Paychecks for the military our spending ? Nope.
Medicare payouts ? Nope.
The truth is there is nothing they can do after this. This is their last hope.
Also for those who know how our monetary system works the way you retrieve all of that worthless money when inflation goes to double digits is raise interest rates through the roof. It gaurantees a longer recession or depression. Stock market loves it though but then again when inflation rises its just Monopoly money. Yep.
Its a campaign speech being made by Bernake for Obama right before the election and it will do far more harm than good.
Monetizing your debt is the last thing a Country does before their economy completely collapses.
Thanks to all the dumbsh#*t Obama voters and the international leftist lovers who hate America.
Dont be so thick to think this wont affect you. Americas economy collapses and the world economy is right behind it.
I look forward to the downfall of this country. We can't fix it till' it's completely broken.
Too many folks have rationalized the "lesser evil" menatility and have been complicant getting us here. Neither side has clean hands. It all doesn't lay on Obummers shoulders. The wheels have been in motion for a VERY long time.
Maybe after many people die from starvation and the tyranny that WILL follow a collapse, then those who have survived the Darwinism, will be smart enough to take the gift of freedom more serious. Our Founders put to pen and paper, a DEVINE contract for the people. Much blood was lost to sign it and for it to be a GIFT to future generations. Too many have spit in the face of those giants of men (our Founding Fathers). We deserve every bit of misery we WILL encounter.
Ummm...... you do know that the Federal Reserve is independent of the president and congress? The Federal Reserve is semi-private organization that no one gets to see everything they do. Hrmm, wonder if they will push us into hyper-inflation this time.
Oh goody I get to educate the new guy. They are NOT independant of the President and our Government by any means.
Originally Posted by Elfshadow
First off each President gets to appoint the new head of the Fed Reserve. Obama appointed Bernake.
Second the Fed has been given enourmous power to manipulate our currency AND interest rates. They are the bank of our Government, of our Millitary, of any massive public institution.
Smaller banks get their money from the reserve by way of loans that have to be paid back with INTEREST. The Fed also pays banks interest on the reserves they by law are supposed to have.
Its one of the reasons banks are not loaning money. They dont have to.
The fed is a collection of twelve banks who form one psuedo-private entity with one Chairman who has god like power over our currency.
The President installs like minded individuals. Its nothing new. This happened before the election so Obama could say hey look at the stock market go !!
Its not a coincidence. Its unfortunate.
QE3 is the product of a failed Keynesian approach and whats Bernake and Obama do ? More Keynesian Folly.
I encourage you to do a little or lot of research on the Fed.
Bush Appointed Bernake, Obama chose to keep him.
Guess what, I know everything you just said. How do explain Obama chosing to keep the guy appointed by Bush. I don't like Obama, hes trash. The problem is the other people also want a failed Keynesain approach.
Personaly I prefer Austrian School of economics to Keynes. I encourage you to read the creature from Jekyll island for a complete understanding of where the FED came from.
Guess what. The Federal reserve operates with next to no over site without measures to force them to disclose the information. Bernake can tell them he would rather not answer questions during oversite hearings.
P.S. It helps when schooling new people to know where the people your condemning as an Obama appointee came from.
As stipulated by the Banking Act of 1935, the President appoints the seven members of the Board of Governors of the Federal Reserve System; they must then be confirmed by the Senate and serve for 14 years. Once appointed, Governors may not be removed from office for their policy opinions. The chairman and vice-chairman are chosen by the President from among the sitting Governors for four-year terms; these appointments are also subject to Senate confirmation. By law, the chairman reports twice a year to Congress on the Federal Reserve's monetary policy objectives. He also testifies before Congress on numerous other issues and meets periodically with the Secretary of the Treasury.
Yeah.... they serve 14 year terms and can not be removed...... Yeah they aren't independent. That's alot of control there. Thanks for the schooling.
In your first post you said they were independant. Also NO Conservative appointee would address a economic malaise with a Keynesian approach.
Sure he was appointed in 2006 but he obviously shares the twisted economic idealogy of the left wing idiots that elected his boss.
Anyone can google the Fed, which you obviously did, but truly understanding the damage and the unconstitutional issue of billions of dollars of worthless FIAT currency takes a true understanding of our monetary system. Its what this threads about.
To think that the Feds disastrous policies and its recent action this close to an election is not associated with our dear leader is the height of naivete.
You will know its a Conservative apointee when free money, free for the fed, isnt pushed out into the market and supply side economics is left to initiate job growth.
Originally Posted by Six
They are independent. The whole federal reserve system was set up to be independent of politics.
Let me spell it out for you republicans are Keynesians. Romney is a keynesianm, as was Bush. The have to be inorder to support the bloated government they have produced. With the exception of Obama, Republicans have time and again grown government more then democrats, all the way back to Lincoln.
P.S. I would love to see a return to a gold standard.
The dollar is going to lose its status of the world's reserve currency. When this happens the dollar is going to diminish against other world currencies. All that cheap Chinese junk we buy won't be so cheap anymore. And gas prices, with all the oil we buy from the middle east, it's going to cost a lot more.
Fuel prices increase simply because oil is purchased with green backs.
Originally Posted by exreo
And oil is not the only commodity exclusively purchased with green backs.
Its why this is such a disaster fiscally. Pumping billions of FIAT paper into a shrinking economy with no attention payed to demand is the death knell to what we have been use to for decades.
The private sector builds the economy, sustains it, not Obama.
Feel free to post examples to your assertions that Republicans remotely embrace Keynesian economics.
Originally Posted by Elfshadow;1
As far as the gold standard do you know why we went off the gold standard ? Simply put not enough money. Not enough to fight wars, fund massive govt projects, or extend out into a ever expanding population.
Its a horrible idea. We went to a FIAT currency because if properly managed there is less volatillity and we dont have to rely on a increasing supply of gold to devalue our wealth.
Gold is a traded commodity, the more thats mined the less its worth. Its just a valuable metal. Its not something you build a currency on in this day and age. We've moved past trading actual valuable items for goods and services plus those with all the gold would have a enourmous amount of power over the value of your dollar.
And saying the Fed is independant is like saying the Supreme Court is independant. Political agendas snake their way in and out of every govt institution out there.
Plus when Obamas gone Bernake will be gone too. How independant is that ?
"I am now a Keynesian in economics" Richard Nixon.
Originally Posted by Six
You understand why we switched to Fiat, without it none of what our government has become would have been possible. The money supply is a direct limitation on the power of government.
You seem to have the standard mis-beliefs that we need to have constant inflation. I can understand why. It's the standard model taught in school and college. Deflation is not bad. A deflationary death spiral is bad true but so is hyper inflation.
I see you also hold one of the basic mis-beliefs about the nature of money. Any supply of currency is enough. Much like interest rates the market should set the value of the "money". I like the idea of a "gold" standard because it's a direct limitation on government. AKA they can't just print more to buy votes with medicare, medicare, social security, food stamps, welfare, and everything else they have used to hook older generations on, or younger generations with pell grants for educations. Fiat is what allows for unlimited government in your life.
Of course, but much like the Supreme Court, the Congress and the President have no say in the actions of the Federal Reserve once the board and chairman are selected, they can't even see the actions of much of what the federal reserve does behind closed doors.
I thought Bernake would be gone after Bush, hes still here.
I made the clear distinction that a FIAT currency manged correctly is the best form of stable currency. I also gave a couple of real good reasons why gold is a bad standard to build a currency on.
No its not the 1800s where people literally carry around gold to trade with and thats what you're advoxating except the promisary notes will be a representation of an equal amount of gold.
Im for growth, profit, hireing and mans free expression to use his talents and knowledge and motivation to build a better life. There needs to be money to do that.
If you're ine of those peoplethat preach a creditless society where what you have is what you have then you really have no understanding of what drives our economy.
Inflation is already double digit and the Feds action is going to increase it even more. Where did you read that I was pro-inflation ?
The title of the OP is obviously critical to the CURRENT Feds action. OH AND BY THE WAY THEY JUST DOWN GRADED OUR CREDIT.....AGAIN. Yep.
Its gonna be tough when no one buys our bonds.
Also, one obscure quote to a long since passed President is hardly objective proof that " Republicans " as you put it share the same affection towards Keynesian economics than our current President.
Its a desperate attempt to legitimize a rash statement. You know how to fix that right ??
A Fiat currency is never manged correctly because human being are not perfect. Fun fact, the USA dollar is currently the long lasting fiat currency. Before this, they had not lasted more then fifty years. Yup, they are really well managed.
Originally Posted by Six
You gave false reasons for why a PM is bad as a currency. AKA there is not enough to go around. The response is that the value of the money adjusts automatically to how much of it is in the economy. You have a basic misunderstanding of the nature of money. For the average person devaluing wealth, aka inflation or printing money out of thin air, means that their saving are worth less then it was before. This is supposed to be countered by their debts being less as well but this is relient on them making more of the money that is being printed. How is this good for anyone outside of the govenrment who just wants to pay off their debt with inflated cash, so they can borrow more, to bribe citizens with?
With a PM as a currency as the population increases, or the demand for capital increases, the value of items or services would drop, the value of your saving would increase, but if your heavily in debt, like the government is most of the time, the value of your debt would increase as well. I can see why the govenrment does not want deflation, but as someone that would like to be able to save money and invest, I would love to see some.
Also Bush and a republican congress signed an unfounded 7 trillion dollar medicade prescription plan? Where do you think they where planing on getting that?
Oh I see, you think you can have Fiat without a government going out of control with it. Would you please show me just one historical example of a nation that embraced fiat where it did not collapse do to inflation?
PS Its actually part of the Constitution that we have to use silver or gold. This was cause by the failed fiat currency called the continental.