QE3: Doubling Down on Irresponsibility
Helicopter Ben is at it again:
Bernanke’s Fed has engaged in what has euphemistically been called “quantitative easing” or “QE.” The result of a QE program, Bernanke says, will encourage consumer spending, reduce unemployment, strengthen the dollar and help savers. In short, if it works, QE can be a magic elixir (or at least a palliative) for the nation — if it works. In the past three years, we have had QE1 and QE2. Neither of those created a significant amount of jobs nor did it spark consumer spending, strengthen the dollar and help savers as it was intended to do. Now the Fed is launching QE3. What do you call it when someone keeps doing the same thing over and over again, hoping for a different result?
The name for this particular brand of insanity is inflation. So far we have avoided the hyperinflation that could cause a total economic collapse. However,
The inflation rate since the beginning of 2007 through 2011 was 8.22 percent.
That means a dollar saved in 2007 is now worth 93¢, even taking into account interest from keeping it in the bank.
Where did the value of the money go? To help pay Obama’s massive debt:
In monetizing the debt, a country borrows money and then pays it back with inflated dollars. Hence it is monetary policy that helps the country pay down its debt. (Bear in mind that for all this talk about China and Japan, Americans hold most of U.S. debt. This means is that individual Americans that help pay down the debt through a stealth tax known as “inflation.”)
So much for Obama’s oft-repeated promise not to raise taxes except on the demonized “rich.” Everyone who owns American currency is getting taxed through the nose.
Bernanke admits that the QEs will have diminishing returns in terms of short-term benefit for to the economy — and the returns were insignificant to begin with. Why does he keep risking a catastrophic plunge into hyperinflation?
There has been increasing speculation that Bernanke’s Fed is doing the Obama Administration’s bidding; i.e., pumping more money into the economy to make the economy look better before the presidential election.
This has happened before, under a similar administration.
G. William Miller, Fed chief under President Jimmie Carter, did pump money into the economy to help Carter’s re-election chances because, according to Miller, Carter told him to do so.
Bernanke is highly motivated to keep the Moonbat Messiah in power. Chances are excellent that Obama would reappoint him to his extremely powerful post when his term runs out in 2014, so as to keep monetizing the debt. Romney has made it clear that he would not.
Graphic and tip compliments of Zappatrust.
US Credit Rating Cut by Egan-Jones … Again
Published: Friday, 14 Sep 2012 | 3:43 PM ET
By: CNBC.com
Ratings firm Egan-Jones cut its credit rating on the U.S. government to “AA-” from “AA,” citing its opinion that quantitative easing from the Federal Reserve would hurt the U.S. economy and the country’s credit quality. “We are not receiving QE3 positively,” Vice President and co-manager of the ratings’ desk Bill Hassiepen told MNI Thursday, while the fiscal situation is a “nightmare.”
While the Fed is seeking to support economic growth through its quantitative easing, Hassiepen argued that the central bank’s “massive monetization” is instead causing “sluggish to stagnant economic growth.” In fact, he expects growth to become stagnant within six months as a result of the Fed’s policy.
…In other words, the latest reckless, irresponsible, treasonous action of bailout bernanke and his feckless Federal Reserve (an OBOZO-supporting Political Action Committee) will compound the damage already done to the US economy by OBOZO’s failed economic and regulatory polices.
As Ronald Reagan, America’s Greatest Modern President, has said:
“Government is not a solution to our problem, government is the problem.”
[...] the dollar and help savers. In short, if it works, QE can be a magic elixir (or at least a [...] Moonbattery This entry was posted in Conspiracy Articles and tagged Doubling, Down, Irresponsibility by [...]
They also had QE Twist after QE2.
Prices are rising on all commodities including stocks, food and fuel. Of course savers and anyone who buys groceries and clothing are noticing price increases. They try to blame it all on droughts, speculators and middle east conflicts but they are just doing the CYA routine.
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..and the chicks for free..
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=In monetizing the debt, a country borrows money and then pays it back with inflated dollars.=
Or, to put it simply:
I borrow $10 and write you an IOU for $11. The next week, I pay off the debt with another IOU.
Bad News! They are already talking QE4, as of a few days ago, on commie-Bloomberg channel, I kid you not. Not even the commie-libs on Bloomberg were happy to hear it.
QE4? But QE3 is open ended, meaning they will keep doing it as long as “needed” to the tune of $85 Billion per month/ over 1 Trillion per year. That’s why it’s called QEternity.
“strengthen the dollar”
Really??? How effing stupid does he think we are??? Trillion dollar expansions of the monetary base strengthen the dollar?
Bloomberg guest said “QE4 after the twist”. The present quantitative easing is mortgage buyback-based, so I assume the next easing will be in some additional sector.