QE3 (govt creating more money) is here... and expect price inflation to follow

[jmac00]

so you want to talk about some **facts** about QE3 and the debt, here ya go:

http://online.wsj.com/article/SB1000...pinion_LEADTop

Bernanke has pretty much destroyed the countries economy. here are some excerpts from the article

The amount of debt is one thing. The burden of interest payments is another. The Treasury now has a preponderance of its debt issued in very short-term durations, to take advantage of low short-term interest rates. It must frequently refinance this debt which, when added to the current deficit, means Treasury must raise $4 trillion this year alone. So the debt burden will explode when interest rates go up.

Did you know that funding for federal regulatory agencies and their employment levels are at all-time highs? In 2010, the number of Federal Register pages devoted to proposed new rules broke its previous all-time record for the second consecutive year. It's up by 25% compared to 2008. These regulations alone will impose large costs and create heightened uncertainty for business and especially small business

Under the president's budget, for example, the debt expands rapidly to $18.8 trillion from $10.8 trillion in 10 years. The interest costs alone will reach $743 billion a year, more than we are currently spending on Social Security, Medicare or national defense, even under the benign assumption of no inflationary increase or adverse bond-market reaction. For every one percentage point increase in interest rates above this projection, interest costs rise by more than $100 billion, more than current spending on veterans' health and the National Institutes of Health combined.

Did you know that the federal government used the bankruptcy of two auto companies to transfer money that belonged to debt holders such as pension funds and paid it to friendly labor unions? This greatly increased uncertainty about creditor rights under bankruptcy law.

[jmac00]

and this Opinion from the Washington Post:

http://www.washingtonpost.com/opinio...377_story.html


If anyone is looking for a rosy future, you should keep your eyes closed. This is going to get ugly, FAST

[Six]

and this Opinion from the Washington Post:

http://www.washingtonpost.com/opinio...377_story.html


If anyone is looking for a rosy future, you should keep your eyes closed. This is going to get ugly, FAST

Interesting article. Bernake hopes to spur home buying by lowering interest rates when fundamentally interest rates have nothing to do with this extended recession.

Banks aren't loaning enough money and because of a new Fed policy they dont have to to survive any more. The Fed is paying interest on the banks reserves now. Thats the capital that by law they HAVE on hand.

Remember we had a bubble when interest rates were 8% and with ARMs.

[jmac00]

Interesting article. Bernake hopes to spur home buying by lowering interest rates when fundamentally interest rates have nothing to do with this extended recession.

Banks aren't loaning enough money and because of a new Fed policy they dont have to to survive any more. The Fed is paying interest on the banks reserves now. Thats the capital that by law they HAVE on hand.

Remember we had a bubble when interest rates were 8% and with ARMs.

AND Bernanke is trying to reduce the unemployment rate? Since when is it the job of the Federal Reserve to reduce unemployment. I understand that if he lowers rates....whatever....but he came right out and said he was trying to reduce the unemployment rate. Which I think is baffling a lot of economists. (I also think this maybe a short term attempt by Bernanke to get Obama re-elected~~~thats just my conspiracy theory LOL)

I often wonder what would have happened had the Banks renegotiated mortgages instead of foreclosing on so many homes. I know a lot of people KNEW they where over there heads, but it seems to me that renegotiating the loan and still have someone paying down the debt would be better than having an empty house sitting there rotting away.

[Six]

To add some perspective to the debt debate just the interest on the debt is enough to fund 80% of the cost of the Peoples Republic of Chinas Military.

In essence we are building our enemies army with just our interest payment.

Another 4 yearz for Obama. Count on a Latin American type of existence by 2016.

[printer2]

Good article, I am of the opinion it would have been best if the Fed took a do nothing approach and let time solve the problem. Basically the country has to spend time digging itself out of debt not take on more. Basically trying to do a magic fix to the economy. Basically because nobody wants to hear getting on a good financial footing is painful.


Would like to play some more with you guys but stuff calls.