Don’t Stop the Presses! Bernanke Wants to Print a Whole Bunch More.

We now have the announcement that Ben Bernanke’s Fed will buy $45 billion a month in treasuries, QE4, until unemployment reaches 6.5% or his version of inflation exceeds 2.5%. What a surprise!

Last September, when Bernanke announced the third phase of the government’s program of borrowing from itself by creating new money and using it to buy government bonds, I wrote:

Bernanke says that the new announced round of money printing (QE3 plus more Twist) is intended to reduce unemployment. Does he believe that? It is possible that Bernanke really drinks his own Cool Aid, but I doubt it. Does he think that stock market gains will boost confidence and somehow help employment indirectly? Perhaps. He has in the past claimed credit for spiking the stock market, although he must know that the empirical evidence does not show a link to employment gains.

Why then this dramatic move only two months before a presidential election?…

The most likely explanation is that Bernanke is worried about the treasury auction market. He wants to be able to use his printed money at will to support it…. Ostensibly the QE3 purchases will be mortgages…. The program can always shift into treasuries at any time….

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10 comments
LiberatedCit
LiberatedCit

Pretty bad when the Commies recognize the problem

 

Cao Can, the author of "The Dollar Apocalypse," joined the conversation on Middle Class Americans from Beijing. He said that Ben Bernanke is the murderer of the American middle class.

 

http://www.youtube.com/watch?v=zgmgeThFTLU

 

Peter Schiff: Anyone with Wealth in the U.S. Dollar should be Concerned

 

http://www.economicpolicyjournal.com/2012/12/peter-schiff-anyone-with-wealth-in.html

 

What NO ONE seems to recognize though is the Fed is a scapegoat the real problem is our politicians they created the Federal Reserve Act they could abolish it but they won't because then they couldn't continue spending with abandon and wouldn't have the power that comes with the purse.. So as much as I dislike the Federal Reserve people's anger has been misdirected successfully by our politicians. This is even more true since we abandoned the gold standard now they really have you under their thumbs you have been reduced to nothing more then a debt slave.

 

It Is Impossible For The US To Default

 

http://www.forbes.com/sites/johntharvey/2012/09/10/impossible-to-default/

 

The Fed as Giant Counterfeiter

 

Once you understand the details of modern central banking, you are able to step back and see that it truly is a way for the government to use the printing press to pay its bills. FULL ARTICLE by Robert Murphy

 

http://mises.org/daily/4029

Robert Nossner
Robert Nossner

.... The wanker's got to pay for his hookers somehow...

Geo James
Geo James

piece of shit corrupt criminal central banksters. filthy scumbag politicians. Eradicate them all.

Charles Massey
Charles Massey

Well food prices will go up - but Big Ben does not shop so he cannot see us hurting with his continued printing and driving the value of the dollar down.

David Wilson
David Wilson

BAILOUT Ben Bernanke should be FIRED!!! Obama should have been IMPEACHED and NOT Re-Elected!!

Curtis Owens
Curtis Owens

basically says spend it or it gets worthless.

Joe Boyum
Joe Boyum

only way we will not see a serious depreciation in the dollar is if there are some major spending cuts or increase in tax revenue. Either way, it is totally the wrong thing to do. The supply of money does not matter it is what backs the currency that matters. Right now bond prices are dropping. And if they want to cover the cost of doing business they will have to issue even MORE bonds. Means even lower prices. Then they have to tax people to service the debt. More tax = less investment or spending = slower growth.

LiberatedCit
LiberatedCit

ps why is it that no one ever mentions bernanke is channeling Marx?

 

QE (quantitative easing) is essentially the printing of money and the addition of liquidity into the markets so that stock (and other asset) prices are given an artificial boost. Federal Reserve Chief Ben Bernanke believes that by pulling up stocks, the masses will feel richer and spend more on consumer goods, thus lifting up the economy. This is based on Karl Marx's reflexivity theory (George Soros essentially paraphrased Marx) that states by turning the small wheel (stocks), you can turn the big wheel (economy), which in turn will come back and turn up the small wheel (stocks). Bernanke subscribes to such a theory, and he wants QE to lift up the small wheel (stocks), which he hopes will lift up the big wheel (the economy).

 

http://seekingalpha.com/article/747801-will-qe3-be-announced-in-august