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Notice how Bernanke says he may do "more or less" of QE2 "as needed". In other words, it is open ended. There will be no QE3 - he knows it won't fly. Much easier to use what is already in place and dial it up or down based on circumstances.
You really think that "There will be no QE3"?
IMHO that would require an aknowledgement from Bernank that *Keynesian Economics* has failed, as that *IS* his last play from that game book...
The only way to stop Bernank is to take away his ability to *pump* the failed system with QE drugs, when it approaches flatline...that is to *End the Fed* of remove the Bernank from his pseudo .GOV position.
Bankster Gangsters are doing their damnest to tread water using a *failed* model and MUST loot the Global Economy *until* Ponzi *debt* creation collapses and *stacked* gaming theory ceases to trick - Then, and only THEN, will the *sovereign* emperors be *finally* denounced as the craven and depraved inglorious basturds they *always* were.
Squeezing the last bit of ill-gotten profit has become a desperate addiction for the perp skool bandits, and led by their King Ponzi Monkey, Ben the Bernank, they have *successfully* looted the U$ Treasury in broad daylight....
At some point *GAME OVER*, and The 'MeriKan Sheeple will become fully spooked upon realization that Pastures of Ignorant Bliss shall never 'gain be grazed upon, and they'll realize they missed da boat to self-actualization through duplicity, graft and brazent *taking*, having been upstaged by the Bankster Gangsters and their politikal lap-pets, the (D) & (R) Kleptocrats.
Until liquidity via amassing generational debt slavery stops working, the games will continue!
I think the previous post may be on to something. Thing about how the main stream media really picked up on QE2. Glenn Beck covered it, 60 minutes interview. The average person is starting to understand whats going on here. At some point something has to give. No one with half a brain expects this to end well. I think at some point people will push back, it may take $5 / $6 gas, but eventually the jig is up. The fed is in a field of landmines and the world only needs to step on one and they all go off.
Malthusian Economics will be the new phrase for 2011.. the economics of violating ones neighbor while rushing for the door.
You ever been on the Gulf coast right before the hurrucane came in?
Indeedy "Open Ended" and
FED’s QEII is $1 trillion or more and NOT "only" the $600 billion
MarketWatch: "The U.S. central bank’s already buying intermediate-term Treasury bonds as it recycles cash from its maturing mortgage holdings. Those purchases could total nearly $490 billion in the next 12 months, according to the report prepared by a Nomura team led by George Goncalves, head of U.S. rates strategy."
So $600 + $490= 1.09 Trill
The Financial Times: "Aside from the $600bn of Treasuries slated for purchase under “QE2” until the end of next June, the Fed will also buy an estimated $300bn of additional Treasuries – from reinvesting the proceeds of expiring mortgages. That is expected to push total purchases to about $900bn."
So $600 + $300= 0.9 Trill
NY Fed outlines plan for ‘QE2’ buying, 9 November 2010, by Michael Mackenzie in New York (The Financial times) http://www.ft.com/cms/s/0/9b83261e-ec3d-11df-9e11-00144feab49a.html
Maybe the Fed will lateral QE in mid-2011 into for a new program called ??? that outright purchases muni bonds? We all know muni bonds is a big fail and getting larger and far worse by the passing week.
not to mention that the administration will almost surely facilitate the repatriation of offshore profits (estimated to total almost $2t (coincidentally the same as their current cash hoard) at a tax rate in the 5% range. This will almost certainly flow into stock buybacks and special dividends driving equities even higher and screwing the taxpayer that much more.
I seriously doubt there's any more announcements for QE, they will keep Ben off the idiot box and but he will continue to print money. QE2 to infinity.
Ben Bernanke will have no choice but to enter the Treasury purchasing market once again...
I'm absolutely banking on it. This is a solid actionable fact. zirp 4evah, qe infinity.
I think you're right, Bernanke will never stop. By the way I like your pun "I'm absolutely banking on it".
heh. zh has been saying the same thing for many moons. The logic is irrefutable.:
All Bernanke has to do is orchestrate a 3% drop in the S&P and warn of impending Armageddon to get our gutless Congress to look the other way while he initiates QE 3, QE 4, QE 5, etc...
I would agree. Though I think that the other observations about him not actually calling it QE3 are valid.
What exactly are his options here? To stop printing? I don't think he's got the guts for it. My impression is that he's boxed in, with no other way out (in his mind).
We will never know the real price tag of QE2. You can bet they will never stop because once they do it is game over. They can call it whatever they want but they won't be successful.
I triple dog dare the bernank to let rates rise:
No doubt he's going to shoot his eye out.
I triple dog dare the bernank to let rates rise:
Bond vigilantes >>>>>>>>> The Ben Bernank
It will all boil down to a question of urgency and political expediency (as always). If jobs growth sputters and housing continues to double dip there'll be no hesitation about QE3 (though publicly they'll wring their hands about debt and it's the very last time we'll need to do it and we promise that we'll get austere some day). In a stressed economy, the Fed is more likely to respond to anxieties and unpredictables because the stakes keep getting higher and higher, the clock keeps ticking, and consequences of being 'wrong' keep increasing.
My prediction: in 2011, price and capital controls will come to the foreground, slowly at first through policy shifts like position limits and disclosures and margin requirements, then through tax incentives.
No, they're bound to freak out about commodity prices especially oil when it hits 100.
The country jst cant run on that. QE will have to end.
They can"t end QE. GDP would go negative. But they can impose price controls. And will.
If they're dumb enough to try price controls, then they had better institute wage controls as well. Unless wages are forced higher, Obama will face outbreaks of violence and things will start to blow up, literally. They really should consider hiring some experts from the PRC at this point. The Chinese government has far more experience in keeping the lid on when things get rough.
We had price (and wage) controls here in the US in the early 70s for 4 years. THis time you won't need wage controls with 9% unemployment and outsourcing
I remember Nixon's attempts vey well. My point is that price controls alone will not quell the anger, especially when the shortages start and people are faced with long lines and empty store shelves. Obama will have to force wages higher and/or increase handouts so there is some appearance of progress. If we are going to model our economy after the Chinese, then we had better learn to govern like them.
That would be the end goal. Valerie Jarrett has stated publicly that she admires Mao. You don't put admitted communists like Van Jones in position of power without an end game that will transform government.
Mao made Stalin look like a cabbage patch doll when it came to killing his own people. For one to say that they "admired" someone like that... wow.
I don't know how many people Mao killed, but Stalin is reported to have killed a minimum of 50 million Russians during his time in power.
Your better geography studies place the numbers between 18 and 35 million. Horrific by any standards, if Mao was worse, then he might start getting into numbers killed by US governments in their attempts to spread democracy via poisoned foodstuffs, military takeovers for raw materials and of course, oil.
Incredibly, people continue to classify America as a great model- you might notice, very few are from countries outside of the US and Britain- another mass killer in it's days as a world power.
I find it interesting how throughout history, one person has been capable of killing so many people and the population rarely objects. Even when the people are themselves. I find it even more interesting that we continue to use any form of government based on the rule of a small elite buttressed by a police power and legitimized by an in house judicial system.
Sean-happy new year.
" numbers killed by US governments..."
" numbers killed by US governments..."
Happy New Year Ned,
Spanish- American War, The Depression, Vietnam, Both Gulf Wars, Grenada, Nicaragua, Panama. Use of the IMF to transfer the wealth of nations through projects creating poverty and death through the accumulation of debt. Baby formulas and other tainted food items that cannot be sold here, being sent to foreign countries. The use of revolutionaries to access products in Africa and South America.
The use of corn based foods to cause obesity, diabetes and cancer. The pollution of water, air and soils creating cancers and other diseases- ending lives prematurely. The US government not only allowed these things to happen, they wrote the laws that allowed it.
Economic Hitmen, Us History, History of Money and Banking Murray Rothbard, Acres Magazine- hundreds of articles, Organic Chemistry, The Robber Barons, The Morgans, that will have to do for a start.
The people who did these things are the same people regardless of their nationality. It's got nothing to do with America vs. China vs. Russia vs. Great Brittain. Countries are merely ideas brought to reality by the people's vision which waxes and wanes like the phases of the moon. This is a human problem. Go easy on America. She was (and still is) a good idea in need of a people worthy of her. She needs your actions,, not your reactions.
Anyone who admires Mao Tse Tung either doesn't know shit about
him or is a sick puppy. Mao is high up in a very elite group of psycos.
Brother, I've seen your posts, and you're far too intelligent for that trash.
Is there a legitimate thinker on ZH or anywhere who has no doubt the real unemployment rate under a U6 type measure would easily exceed 13%, and that the true unemployment rate not using any current or former governmentally crafted smoke&mirrors statistics scheme is closer to 20% (and possibly higher)?
conveyor belt no. U-6 is engaged, and voila! the answer is whatever they dial it to be.
You've probably figured out that oil has not changed price. In Gold.
Had the bernank not run the printing presses 24/7 oil would still be $60 or so.
If the printing continues (he's trapped) oil will get to $200/$500/$1000.
Happy New Year!
Here is the debt outstanding:
Here is the interest on it:
It says $414 billion on $13.8 trillion.
That's an average rate of 3%.
We concluded that should the average interest rate on US debt rise to 5%, the annual interest payment on the debt would jump from roughly $180 million to almost half a trillion, or roughly 25% of all revenues, at which point the Weimar scenario starts getting quite realistic.
I do not understand these numbers. The annual interest payment is ALREADY almost half a trillion -- at 3%.
An increase to 5% would be a 60% increase to 414B X 1.6 = 662B.
QE3, 4, 5 with no end. QE is the new normal.
I sure hope that socialist, Kenyan, anti-colonialist-business-hater allows all that foreign held money to come back to the USA tax free. He has dug in his heels on that one. It really sticks in his craw to consider allowing money to come back to the USA tax free because he knows that that money will be distributed to capital owners rather than his base of tax sucking parasites. It's so "unfair" according to the great redistributor in chief.
You're wrong about the business hater. If big business is so wonderful why do you need bailouts and government takeovers? Whatever happened to the best company will prevail?
We lost our soul and went to fascism, big business style in 2008.
We have been fighting an uphill battle since LBJs "Great Society" act and our politicians have been gaming the system ever since. Obama just stands ready to complete the transition to a new type of government, a position he has been groomed for.
I'd argue we sold our soul in the 1913, then sealed our fate in the 1930's when fascism became the rage the world over. Mussolini, Uncle Joe, Hitler, and Roosevelt all had the same idea (controllers?).
Hard to argue with that. My point was more from a financial standpoint. Unconstitutional as it was, SS was financially solvent at the onset. In the spirit of vote buying, future politicians couldn't just leave it alone.
Groomed by whom? His election was pure luck and stupidity by the
opposition. TPTB see an opportunity and are making the most of it.
That's politics American style. Now the economic situation is a whole
nuther deal. I believe Alan Greenspan set it up on purpose
to crash the fiat system but there's no way he can admit that.
Study his life, the guy has been surrounded with more communists than Stalin. He studies the Constitution not to follow it but to destroy it.
By April/May Europe will be providing a useful distraction. Ben can spool his printer up to max ink consumption again, the dollar may be looking like a better bet than the Euro (for the time being) and some flight to `quality` money may be lured into the TBond market. I think he will largely get away with it again. But the price of goods in fiat money.......Up Up Up and ................awaaaaaay
What about the 3 new Fed committee members rotating on this month? They are supposed to be QE hawks... I would think they could influence more than just their 3 votes.
I'll go odd man out and say that Bernanke is doomed if/when (take your pick) we get another significant increase, YoY (maybe shorter term than that?) in the price of gasoline, heating oil, produce, etc.
I already see people who wouldn't have been able to tell me who Ben Bernanke was a year ago refer to him in casual conversation (this is the reason he and his handlers in this administration have felt compelled to have Bernanke go on '60 Minutes' so often - why else would he do this?), and with Republicans set to take over the HofR, there will be more fanning of the flames and blame game politics to incite the American Middle Class on who is to blame for such inflation, even if the Republicans don't really care about the matter - or worse yet, would have done/supported the same things Bernanke is doing now but if under a GOP Executive Branch.
In other words, all is fair in Love, War & Politics, and I expect to see fireworks this year with Bernanke cast as a central villain if things continue to evolve (devolve?) as they have been.
Now, let me put on my tin hat, and also say that the very sophisticated people running the Federal Reserve see the problems they face on the horizon, and know that they can't please the kleptocracy while fooling the middle class on a longer horizon, and they already have their backup or contigency plan in place. What that contingency plan is, whether a theatric Bernanke-as-sacrificial-lamb before Ron Paul, or some other measure, is anyone's guess, but the succession plan is already in place.
"...they already have their backup or contingency plan in place."
Yes, they do. It's known as "Continuity of Government", and it likely involves the elite and their families being rapidly relocated to vast underground complexes such as Cheyenne Mountain in Colorado.
Perhaps this might be why Caterpillar has enjoyed such a successful business model during the "recession". The heavy mining and earth-moving equipment may be very much applicable to the construction of large subterrainian evacuation/living facilities.
The debt that the Fed now holds - is there a rebate back to Government on this $1Tr+ debt mountain, so that the effective rate for this debt is zero?
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