Qe3

The Fed announced they will act to further stimulate the economy fearing that current job growth isn't enough to lower unemployment. They will be implementing mortgage purchases of 40billion per month and some other things related to operation twist.


Was surprised no topic here screaming theft of savings!

Yea I heard about that and watched the stock market jump up almost 200 points. The banks and the unions know they are about to get paid off again. taxpayers money is always good it's free.

I'll bet it's spent before O gets out of office.

Unlimited QE. Maybe 1 out of 100000 knows what that means as far as dollar valuation, basis spreads and ultimately the destruction of the dollar and capital as 0% interest until 2015 has told the banks to lever it even further, if they make a bad bet the taxpayer (through dollar devaluation) will bail them out, if the make a good decision they get to keep the massive profits. Heads you lose, tails they win.

Watch how few people respond to this thread. People don't understand finance or all those complicated numbers and all the calculus it takes to understand it all. They figure the stock market went up so the economy must be doing great. Do they know that 90% of all trades on the market are done by computers that automate trades according to news blurbs? The market is no longer a huge amount of people all deciding to invest again, its just the TBTF computers making millions of trades per second on the news of free currency for the next 3 years.

Watch the price of Gold and Silver shoot up. They are the barometer of dollar devaluation.

NoDrama said:

Watch the price of Gold and Silver shoot up. They are the barometer of dollar devaluation.

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Maybe in normal times but really both are inflated right now. The ones making a killing are the ones selling or trading gold.
Judging by how low inflation is if the Fed didn't act we'd likely end up with deflation which is terrible for any economy. The problem to me is fed policies are always top heavy, true they stimulate spending but not from the people we really need to be spending...consumers. Who are currently busy paying down debt.

Fungus Gnat said:

The problem to me is fed policies are always top heavy, true they stimulate spending but not from the people we really need to be spending...consumers. Who are currently busy paying down debt.

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Sorry, no, people are not paying off debt. Total consumer credit is UP since 2008, car loans and Student loans mon frere.

http://www.federalreserve.gov/releases/g19/Current/

Dollar has devalued by 6% in the last 3 years.

Silver up 4% today alone, gold up 2%. They are still undervalued. Silver at $120-150 is more correct and with gold at $2500.

Inflation usually hits commodities first, because they hold their value in the face of increases monetary easing.

Bump

no one gives a fuck if gas costs $6 by next year summer. But see who is bitching next summer.

Oh, I know all about it. I also know most people who comment on such subjects are utterly clueless and generally religious minded parrots.

I'm at a point where I might consider making risky plays in the market as I have the capital to back them and credit is cheap and my capital steadily rises.

Probably not though, not a huge risk taker.

NoDrama said:

Bump

no one gives a fuck if gas costs $6 by next year summer. But see who is bitching next summer.

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What do you do when it is your own government stealing money and destroying wealth?

If you are UB you vote Obama....

NLXSK1 said:

What do you do when it is your own government stealing money and destroying wealth?

If you are UB you vote Obama....

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The president doesn't have any say over what the fed does though, so it doesn't matter if you vote Obama or not. The only thing the pres can do is shit can the chairman and vice chairman which is 2 votes out of the whole 12 members of the FOMC. The Senate is also part of the confirmation process.

NoDrama said:

The president doesn't have any say over what the fed does though, so it doesn't matter if you vote Obama or not. The only thing the pres can do is shit can the chairman and vice chairman which is 2 votes out of the whole 12 members of the FOMC. The Senate is also part of the confirmation process.

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Yeah, well the FED did not promise to go through the budget line by line with a scalpel and cut out the waste and inefficiency.

And the FED did not promise to have the deficit cut in 1/2 by the 3rd year of it's administration.

The government is massively overspending and using the FED to cover it up with Quantitative Easing. And the president is exacerbating it by doing absolutely nothing concrete to reduce the deficit.

NLXSK1 said:

Yeah, well the FED did not promise to go through the budget line by line with a scalpel and cut out the waste and inefficiency.

And the FED did not promise to have the deficit cut in 1/2 by the 3rd year of it's administration.

The government is massively overspending and using the FED to cover it up with Quantitative Easing. And the president is exacerbating it by doing absolutely nothing concrete to reduce the deficit.

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The FED spent way more helping the banks than the USA. Oh sure, they loaned us taxpayers $1.3 Trillion last year at a low interest rate, but they loaned the banks $16 Trillion at a much lower interest rate.

NoDrama said:

The FED spent way more helping the banks than the USA. Oh sure, they loaned us taxpayers $1.3 Trillion last year at a low interest rate, but they loaned the banks $16 Trillion at a much lower interest rate.

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thats what they ADMITTED to doing. who really knows what went on in the darkened hallways, smoke filled rooms and lounges where the noble ladies wear masks while they service anonymous strangers and opium smoke stains the lips of all the well-to-do

SOME people jumped on the natural resource wagon 2 months ago in anticipation of QE, Now those people are up 40%. A rising tide lifts all boats.

Lets also not forget that Germany voted for the ESM (European Stability Mechanism) which is saying that the Germans said it was ok For the Euro central bank to print like mad up to $190 Billion Euros to buy sovereign debt, which was not originally allowed under the original agreement since printing causes inflation and Germany is well aware of what Inflation can do to a nation. But no one cares anymore, that was 63 years ago and not many are alive to remember.

Fungus Gnat said:

The Fed announced they will act to further stimulate the economy fearing that current job growth isn't enough to lower unemployment. They will be implementing mortgage purchases of 40billion per month and some other things related to operation twist.


Was surprised no topic here screaming theft of savings!

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It is a theft of savings, that has become the American way. It will end badly.

The Current Account Balance
- net earning on exports minus payment for exports
- earnings on foreign investments minus payments made to foreign investors

List of sovereign states by current account balance 2011 numbers

1 China 280.600
2 Saudi Arabia 151.400
3 Germany 149.300
4 Japan 122.800
5 Russia 90.510
6 Switzerland 76.700


192 United States -473.900



We are living luxury off the last 200 years & off the Dollar as the worlds reserve currency. Like the children of wealth.

Interest expense vs INCOME will rise
7% interest on debt is a joke, our WAM (weighted average maturity) is short duration, and interest rates are at record lows!
We are effectively running an option ARM (adjustable rate mortgage) on our entire public economy!!



Housing will not bottom when interest rates bottom. Housing bottoms when interest rates top!!! People buy payments not prices. Nobody cares about the price of there house, only the payments-to-value!
Majority of Broke US consumers are still long US housing on hope. No hope!

Why am I worried??
The Complete misallocation of resources!
FED is the direct cause of this. Like the housing crises they are causing a crises now. The crises of misallocation of valuable capitol by penalizing savers and builders while encouraging consumption, cronyism and entitlements.
0% CD rates who would save when inflation (CPI) is reported at 1.5%
Real inflation is above 1.5%

Savings is what fuels an economy! Savings is needed for building and industry.

Consumption is the result/fruit of savings and productive workings, not the driver of prosperity.



Asset values increase (direct result of QE $ printing). Chart of the Dow Jones 30



Paycheck to paycheck people suffer (energy up food up, not in CPI but as a result of $ printing)

A weaker dollar shown by the Dollar Index


Bottom line life is harder for most Americans. For wealthy aristocrats and nimble stock derivative traders life is better.

Fungus Gnat said:

Was surprised no topic here screaming theft of savings!

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The theft is the negative real returns on savings, that is the financial repression the FED puts on working class savers.

Right now the US dollar is the worlds reserve currency, this is a fact. There is no shortage of treasury buyers. We issue our own currency, America cannot go broke as in running out of money this is not going to happen. All of this is based on the good faith and credit of the United States dollar.
Remember 7% of the US budget is interest on debt and it is mostly short duration and it is still rising. We are effectively running an option ARM (adjustable rate mortgage) on our entire public economy. The FED does not have the option to substantially raise interest rates internally without causing an exponential rise in government debt.
Remember Volcker raised the federal funds rate, which had averaged 11.2% in 1979, to a peak of 20% in June of 1981, that was to keep the faith and credit in the US dollar, Volker had that option.
You can see where this could lead a FED forced to pay a higher rate of 8% to the China and The American middle class saver gets .75% Maybe with enough pacifying mindless mass media entertainment, EBT cards and entitlements no one will care.

There is a solution, get rid of the private FED. I prints money with no backing, is a private organistation lending un-backed funny money to the US gov't paid back in interest by US tax payers.

echelon1k1 said:

There is a solution, get rid of the private FED. I prints money with no backing, is a private organistation lending un-backed funny money to the US gov't paid back in interest by US tax payers.

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The interest is returned to the treasury less operating costs by the FED every year. They just give it back...

But yes, the FED system needs to be changed.

Not all of it... Class A shareholders of the FED are kept secret from congress & executive branch. It's believed the controlling stake is owned by the rothschild family of london.

All central banks report to the BIS (Bank of International Settlements) again controlled by the Rothschild family. Funnily enough, before the US & allies invaded Iraq, Afghanistan, Libya etc... they had no central banking system controlled by foreign banking interests. As soon as the US got there, they set them up.

echelon1k1 said:

Not all of it... Class A shareholders of the FED are kept secret from congress & executive branch. It's believed the controlling stake is owned by the rothschild family of london.

All central banks report to the BIS (Bank of International Settlements) again controlled by the Rothschild family. Funnily enough, before the US & allies invaded Iraq, Afghanistan, Libya etc... they had no central banking system controlled by foreign banking interests. As soon as the US got there, they set them up.

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I KNEW IT

iTS THE JOOS