We pray that this is very dry satire. I honestly can’t tell. Let’s hope this is a joke.
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!
The story below merely says that the Fed is now promising to keep its interest rates at minimal rates through 2014. But let’s translate. The Fed rate is below the rate of reported inflation. Moreover the rate of reported inflation is less than actual inflation. So adjusted for inflation, Fed interest rates are negative, which is equivalent to giving away money.