Federal Reserve May Soon Begin Buying U.S. Debt at the Rate of $100 Billion Per Month
October 20th, 2010Via: Reuters:
A string of Federal Reserve officials on Tuesday indicated the central bank will soon offer further monetary stimulus to the economy, with one saying $100 billion a month in bond buys may be appropriate.
While internal differences on the unconventional policy are still evident, the consensus view at the Fed appears to be that the economy is weak enough to warrant further support, most likely through increased purchases of Treasury debt.
Kevin,
Looks like its time to put the logo back up of Ben B. throwing paper out of his helicopter.
Lets see, dollar is backed by nothing but the “good faith of the U.S. Government.” There is also that weird Illumanti symbolism printed on it that worries me.
Problems abound. The Federal Reserve is not the U.S. Government. Its a banking syndicate.
Seems to me the Federal Reserve is churning the U.S. dollar just like the bankers have and continue to churn mortgages. Keep on selling and buying to multiple owners. So who is going to own these “buybacks?”
A few weeks ago on NPR they had a story about the people who did the TARP. The woman said, “We created $1 trillion (forget the exact number) out of thin air.”
I know all about balance sheets. I don’t do these now, but its hard for me to believe that the Federal Reserve can just create a debit (bonds bought -you owe) and a credit (we now have received “from someone” who has bought- equal to the same debit). That’s just how it is in the accounting world. You can trace the ownership of each transaction.
My “accountant mind” just can’t figure how the Fed is doing this. The Fed is buying U.S. Debt? Does the Fed really “OWN” anything tangible with which they can buy anything? And the Fed is going to do “this purchasing of U.S. Debt” to the tune of $100 billion PER MONTH????????????? Just WHO is the Federal Reserve getting the $100 billion per month in their bank account to cover this? I know that sounds like a stupid question, but it isn’t.
I think this quantitative easing/sleazing is HIGH ALTITUDE BULLSHIT. A bunch of zeroes and ones. Bernanke is doing a smoke and mirrors gig.
I DON’T KNOW what this means or how it will impact the ordinary U.S. citizen. I simply don’t. I imagine Germany, where people took wheelbarrows of their paper dollars out to buy a loaf of bread.
I know that many people in the world think an audit of the Fed is going to cure all the ills of our dollar going up, down and around. It won’t. An audit only has Findings and Recommendations, and it is such a laborious process to get the auditee to implement the recommendations, even if the recommendations are transparent, and will obviously, when implemented, cure the adverse condition.
I am not sure of laws and regulations in this regard, but Ben Bernanke is going out on a VERY THIN limb here. My accountant mind just can’t grok this bullshit. And I DON’T LIKE IT.
Sorry for the long rant.
Eileen, the thing that has me 100% baffled is how the US$ is still viable at all. My only guess is that enough countries are still wanting to sell goods into the U.S. market, so everyone is agreeing to go along with this completely obvious scam.
This is the equivalent of an obviously bankrupt company being able to pay for new capital goods with IOUs. It’s bonkers.
Just WHO is the Federal Reserve getting the $100 billion per month in their bank account to cover this?
I think it just gets added to the U.S. Taxpayers’ collective tab.