More EPIC FAILURE Fed to buy bonds.. Are you ready for $5 a gallon gas as the fed buys 40 billion a month deflating the dollar?

iamnothere 2012/09/14 12:46:49
Federal Reserve to spend $40 billion a month to buy mortgage-backed securities
The aggressive actions are intended to stimulate the economy by making it cheaper for consumers and businesses to borrow and spend, but some economists said they thought the benefit to the economy would be modest. Once again.. floating more money into the economy.. but no jobs will be created.. just deflation of the purchasing the value.

THE ASSOCIATED PRESS Thursday, September 13, 2012
The Federal Reserve unleashed a series of aggressive actions Thursday intended to stimulate the still-weak economy by making it cheaper for consumers and businesses to borrow and spend.
WASHINGON — The Federal Reserve unleashed a series of aggressive actions Thursday intended to stimulate the still-weak economy by making it cheaper for consumers and businesses to borrow and spend.

The Fed said will spend $40 billion a month to buy mortgage-backed securities for as long as it deems necessary. It extended a plan to keep short-term rates at record lows through mid-2015. And it said it’s ready to take other unconventional steps to boost the economy even after growth has begun to accelerate.

A statement from the Fed’s policy committee said “a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the economic recovery strengthens.”
The Fed announced the series of bold steps after its two-day meeting ended. Its actions pointed to how sluggish the economy remains more than three years after the Great Recession ended.

Stocks price rose initially. But some economists said they thought the benefit to the economy would be modest.

“We’re not sure what the economic effects of this program will be - it should help growth and employment on the margin,” Dan Greenhaus, chief global strategist at BTIG LLC, said in a research note.
The Dow Jones industrial average was up 15 points for the day just before the announcement at 12:30 p.m. Eastern time. It had surged 105 points within minutes of the announcement, then gave up some gains to be just 35 points higher.

The dollar dropped against major currencies, and the price of gold shot up about $16 an ounce, roughly 1 percent, to $1,750.

“If the outlook for the labor market does not improve substantially, the committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability,” the Fed said in a statement released after the meeting.

The statement was approved on an 11-1 vote. The lone dissenter was Richmond Fed President Jeffrey Lacker, who worries about igniting inflation.

The bond purchases are intended to lower long-term interest rates to spur borrowing and spending. The Fed has previously bought $2 trillion in Treasury bonds and mortgage-backed securities since the 2008 financial crisis.

Skeptics caution that further bond buying might provide little benefit. Rates are already near record lows. Critics also warn that more bond purchases raise the risk of higher inflation later.
With less than eight weeks left until Election Day, the economy remains the top issue on most voters’ minds. Many Republicans have been critical of the Fed’s continued efforts to drive interest rates lower, saying they fear it could ignite inflation.

The Fed is under pressure to act because the U.S. economy is still growing too slowly to reduce high unemployment. The unemployment rate has topped 8 percent every month since the Great Recession officially ended more than three years ago.

In August, job growth slowed sharply. Employers added just 96,000 jobs, down from 141,000 in July and well below what is needed to bring relief to the more than 12 million who are unemployed.EPIC FAILURE

The unemployment rate did fall to 8.1 percent from 8.3 percent. But that was because many Americans stopped looking for work, so they were no longer counted as unemployed.

Read more: http://www.nydailynews.com/news/national/federal-reserve-spen...
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  • Stan Kapusta 2012/09/14 22:02:46
    Stan Kapusta
    That right there is telling me to surrender all my stocks and pay every bill of before the dollar is worth fifty cents. This time the IRA won't shrink on the dollar amount like in 2008. It just wont be able to buy the paper it's printed on.
  • kmay 2012/09/14 15:00:57 (edited)
    Insane move!

    Inflation will skyrocket and make Carter years look lame!

    Gas will be 6, 7$ a gallon like europe!

    Food prices will increase tremendously - already up 10%!

    Prining faux money doesn't create jobs and thus does not help the economy!
  • topcat128 2012/09/14 14:06:59 (edited)
    In my opinion Run-A-Way inflation is just around the corner. This $16 trillion can't and never will be repaid. When China stops buying our debt and more important when the Dollar is no longer the world reserve money supply; thats when the crash will come. Countries and people will be getting out of dollars at any cost. i.e. Run-A-Inflation like Germany in the 1930's. Run A Inflation  No Food  No jobs
  • Elaine Magliacane 2012/09/14 13:28:23
    Elaine Magliacane
    As soon as I heard this... I said... that promise Obama made for energy prices to SKYROCKET... he is keeping that one... we could see $8 gas by November... Bernacke is an IDIOT!!!!
  • Pedro Doller ~Inc. 2012/09/14 13:19:17
    Pedro Doller ~Inc.
    Just some economic dog paddling until the election. How come Dodd Frank didn't cure this problem. Plus all the clouded titles down at the court house.

    I noticed they are starting the October Surprise at the same time, something like a slight of hand.

    Now we will see the stock market go over 15,000 and the libs will say the economy is soaring.
  • AM 2012/09/14 13:09:55
  • topcat128 AM 2012/09/14 14:14:31
    I think Obama and his left-wing, liberal and socialist-communist friends want our money system to crash. Than they can take over the country with Marchal Law and do away with the rest of our freedoms and civil rights.
    ANY BODY BUT OBAMA, IN 2012!!!
  • Sport_Geoff 2012/09/14 13:05:00
    Another false CASH give away. Just as before, the Fed will buy the mortgage backed securities thinking it will cause banks to start lending. And just like before they will sit on the money because people's credit has been ruined and they will not meet the new tougher guidelines. And just like before, in December the banks and Wall Street will hand out millions in bonuses because the Fed just freed up the CASH for them to do it with.

    Once again, the banks and Wall Street get the Gold Mine and the taxpayer's and American citizen will just get the SHAFT
  • iamnothere Sport_G... 2012/09/14 13:09:44
    print money.. how does that make for new jobs?
  • Sport_G... iamnothere 2012/09/14 13:25:57
    I guess it keeps the few required to print it, cut it, and bundle it working. Hell, if printing money is the answer how about just printing up a couple of trillion and give everyone over 40 that has worked at least 20 years and been ruined a few million? We could pay off our homes and debt which would put money into the business sector which in turn theoretically would allow them to create jobs...........NOT, doesnt work that way. The lack of job creation has little to do with the lack of money....it's about the uncertainty of Obama's plans for the future and how much it's going to cost them to create jobs and keep those people working. I know that as an employer we are uncertain just how big a screwing is coming down the pipeline over the next 2 years.
  • Elaine ... iamnothere 2012/09/14 13:32:21
    Elaine Magliacane
    It doesn't... in fact they don't ACTUALLY print it, it is voodoo electronic money... the Feds computer's post an electronic amount of money into the banks and wall street accounts... that's why the STOCK MARKET and WALL STREET LOVE this.
  • Rusty Shackleford 2012/09/14 13:03:49
    Rusty Shackleford
    This is all by design,
  • iamnothere Rusty S... 2012/09/14 13:04:20
    of course
    waiting to see how long it takes to collapse the dollar
  • Rusty S... iamnothere 2012/09/14 13:14:15
    Rusty Shackleford
    The collapse is already inevitable, they are just trying to hasten it.
  • Juan O'Mara 2012/09/14 12:55:04
    Juan O'Mara
    I am ready for the higher gas prices maybe it will keep half the idiots that have no purpose driving off the road.
  • iamnothere Juan O'... 2012/09/14 13:05:13
    part of that is oh so true.. but the higher the fuel prices.. the more we can watch the economy collapse..
  • Juan O'... iamnothere 2012/09/14 13:35:54
    Juan O'Mara
    it will not be pretty
  • The Patriot 2012/09/14 12:51:33
    The Patriot
    I always felt obama was a douche-bag -

    But to put America FURTHER in debt - Just to get re-elected!


  • auron 2012/09/14 12:49:27
    Just start paying 10 dollars for gas now. Pay the normal price and put the rest away, that way when it does reach 10$ a gallon you will be ready.
  • iamnothere auron 2012/09/14 13:06:53
    please send me the extra 6 bucks.. I dont have it .. am already on the edge
  • auron iamnothere 2012/09/14 13:11:14
    Well you better start preparing yourself now. Go to your panel box, flip the main switch. Start solving your problems. Do you have water without fossil fuel? Can you walk to where you need to go? Do you have a stable food supply at home? You better start getting more resiliant if you answered no to any of these questions.
  • iamnothere auron 2012/09/14 13:12:29
    water from the well the well is on pv go away
  • auron iamnothere 2012/09/14 13:18:57
    Than what are you worried about?
  • iamnothere auron 2012/09/14 23:50:31
    10 a gallon diesel meaning few can afford to work meaning super deep depression for the entire world
  • topcat128 auron 2012/09/14 14:21:05
    There are a lot of survival sites out there that will help you during the coming bad and than really bad times. Just google "Survival". These that are prepared with have a chance to survive. Those that don't will have no chance.
    I'm buying more ammo for my guns just in case I have to defend myself.
  • The Pat... iamnothere 2012/09/14 13:37:03
    The Patriot
    Me To!

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