There You Go Again- $600 Billion More in Fed Purchases?

The Fed is signaling in many ways that it plans to start a new program of printing more  money soon (Quantitative Easing 3 although it should really be QE-4 because of Operation Twist). By using the new money to buy bonds, they will get the new money into government hands if they buy new bonds, or private hands if they buy existing bonds. The Fed already owns more US government debt (bought with newly printed money) than all the foreign owners like China and Japan combined. It’s so convenient for the government to be able to sell bonds to itself using money newly printed for the purpose.

In the article below, the new president of the San Francisco Fed, John Williams, says that a QE-3 should be open-ended, no target amount of money stated in advance. This would eliminate the now embarrassing QE 1-2-3 sequence and avoid the necessity of eventually having to announce QE–10, QE–100 and so on. There is little doubt that the Fed will eventually get to the equivalent of QE–10 if not higher.

John Williams is a PHd economist who has headed research at the S.F. Fed. His appointment continues the now well established trend of turning the nation’s money over to the care of academics with no experience outside the academy. Given his training, he knows perfectly well that there is no evidence any of the prior quantitative easings/money printing exercises  have worked. If he were honest, he would also admit there is little reason to think they should work. This is all faith-based, and the advanced economic degree is just used to obscure that.

Click here the article.

About Hunter Lewis

Hunter Lewis is co-founder of He is co-founder and former CEO of global investment firm Cambridge Associates, LLC and author of 9 books on moral philosophy, psychology, and economics, including the widely acclaimed Are the Rich Necessary? (“Highly provocative and highly pleasurable.”—New York Times) He has contributed to the New York Times, the Times of London, the Washing­ton Post, and the Atlantic Monthly, as well as numerous websites such as,,,, and His most recent books are Crony Capitalism in America: 2008–2012, Free Prices Now! Fixing the Economy by Abolishing the Fed, and Where Keynes Went Wrong: And Why Governments Keep Creating Inflation, Bubbles, and Busts. He has served on boards and committees of fifteen leading not-for-profit organizations, including environmental, teaching, research, and cultural and global development organizations, as well as the World Bank.