Fed To Print 1 Trillion Dollars

I hope you got gold:

In essence, the Fed now will print money to buy as much as $900 billion in U.S. government bonds through June—an amount roughly equal to the government’s total projected borrowing needs over that period.

Because the s*** is about to hit the fan.

You are going to take a 20% pay cut whether you like it or not.

I find it humorous that people are mad about Obamacare and TARP while they are a drop in the bucket compared to what the Fed does on a regular basis without any congressional approval at all.

In case you don't understand the article, when the Fed buys government bonds, this is essentially the same thing as printing money.

New money is created by debt being issued from the treasury and then being bought with money out of thin air by the Fed.

The Treasury prints up T-bills, hands them to the Fed, and the Fed prints up dollars which it hands back to the Treasury. The amount borrowed in this case is enough to fund the entire government's operations through June.

Of course, you as the tax payer are liable for the interest on that debt, which will be extracted from your hide at the point of an IRS gun.

Meh, it's the end times emerging I'd say!

But, there's always a storm before the light, so, riots might become quite common. This is going to destroy what ever is left of this economy, so good luck people and stay strong

bastards

(emphasis added)

This is a sad system and it will never get better as it stands. Sad part is none of the money makes it the to middle class, its filtered by the elite skimmed by the upper class and set to support the lower class on gov perks. This only makes the poor dependents and adds to the poor as the middle class looses there jobs.

Well, this is a very common economic strategy for the american government.
In European countries they borrow money from 'producing countries' like china so they can keep their spending standards up. But America doesn't need to borrow money, they just print it...
Because the dollar is linked to oil/petrol (petrodollar) in the international oil marked!
The need for oil/petrol is still growing and huge, so inevitably the need for the petrol dollar is allso growing.
So untill that link is broken, they don't have to be afraid that the value of the dollar will collapse!
Way to go America! In Europe we are struggling and beginning to learn that we need to produce/deliver more and to do that more efficient, so we can begin to pay back our debts and recover our broken economy...

Sounds like pre WWII Germany..

"Our economy's screwed so lets print more money..." "yea, yea that'll work!"

For some reason I can't shake the notion that this makes me think of those shady pay-day loans you always hear advertisements for on the radio, except on a much larger scale. I try not to get on the doom and gloom too much lately but I can only wonder if this is the other shoe preparing to drop, or if we are going to keep getting strung along even longer.

They just cant see themselves taking it on the chin can they?
It's like retarded economics, seriously !
Although when youre fingers are so deep in everyone elses pockets you really dont care until youre being dragged down the street behind a truck while stones are thrown at you and your mansion is being burnt to the ground,
Fools all of them fools fools fools.
They are not immune.

I hope you have ammo

Now if that isn't good news I don't know what is. I have been waiting for the day when I could stop using the fake money wallpaper and start wallpapering my house with the real thing. At this rate I could probably replace my toilet paper with FED notes and save some money. Good news all around what a wonderful day!

reply to post by SpaDe_

Headlines From 2008: "Zimbabwe Stock Exchange Soars As Others Crash"

From Business Weekly, 22 October 2008

While markets across the world have been crashing, the Zimbabwe Stock Exchange has being seeing record gains as citizens turn to equities to protect their money from the country's hyperinflation.

The benchmark Industrial Index soared 257 percent on Tuesday up from a previous one day record of 241 percent on Monday with some companies seeing share prices increase by up to 3,500 percent.

But before Wall Street traders start packing their bags and heading south, they should bear in mind that these figures are just another representation of Zimbabwe's collapsing economy and are almost meaningless in real terms.

Zimbabwe, once a regional breadbasket, is staggering amid the world's worst inflation, a looming humanitarian emergency and worsening shortages of food, gasoline and most basic goods. Inflation is at 231 million percent, but some experts put it more at about 20 trillion percent.

"Why leave money in the bank?" asked Emmanuel Munyukwi, chief executive of the Zimbabwe Stock Exchange at a seminar on the doing business in Zimbabwe on Tuesday.

"People are forced to come on the stock market. They believe that after hard currency, the stock market is the only viable option where you can get a bit of a return," he said.

Zimbabwe's stock exchange, established in 1896, is one of Africa's oldest and the fourth largest. A securities commission has been established and it is hoping to follow in the footsteps of other countries like its neighbor South Africa and list as a company.

There are 19 stockbroking firms in Zimbabwe and 90 percent of investors come from institutions, asset managers or pension funds. About 8 percent of investors are individuals and only 2 percent are foreigners. This is in comparison to about a decade ago when foreigners made up about 30 percent of investors.

Munyukwi expressed his dismay at the "gross economic mismanagement" by the Zimbabwean government which has led to the collapse of the economy, however, the stock exchange was managing to survive despite the harsh environment.

He cited Zimbabwe's isolation from the international world _ and therefore protection from the financial turmoil _ as one of the reasons the market was performing well.

"We all know what has been happening to the world financial markets, yet the stock exchange in Zimbabwe is breaking all records. We are running short of superlatives to describe the performance of the market," he said.

With the unofficial exchange rate leaping from 30 million Zimbabwean dollars to US$1 on Friday to 100 million to the greenback Monday, showing a shortage of cash, people are trying to hedge against inflation by turning to equities.

Some of the winners have been government controlled Zimpapers, which gained 3,471 percent on Monday to give a share price of US$0.8 while cement maker Lafarge saw their share price rise 1, 400 percent to US$0.90

Companies such as Dawn and African Sun, which are in the tourism sector, have seen real growth in U.S. dollar terms of over 300 percent.

The biggest sector on the stock exchange is financial services with newest listings being in the mining sector. Zimbabwe has vast untapped mineral wealth including gold, diamonds and platinum.

Munyukwi said market performance was also being driven by strong, cheap assets which are offering returns that were more than matching inflation.

"Some people think that this is a bubble about to burst but I don't think so," he said.

He acknowledged though that the market was largely overvalued in Zimbabwean dollar terms but undervalued in U.S. dollars.

Jonathan Waters, head of ZFN, a financial networking and analysis company, cautioned against too much optimism over the performance of the market.

"Nothing has really changed. The market is treading water," he said.

Waters also said volumes being traded were very small and there was no real movement year on year. The market value of the ZSE being about US$2.5 billion compared to South Africa's JSE, which is worth about US$460 billion.

Waters also cautioned about volatility in share prices with some stock being expensive the one week and cheap the next or vice versa.

Munyukwi said a political solution was vital to the resuscitation of the economy and expressed hope that the deadlock in talks over power-sharing between the opposition and President Robert Mugabe would be resolved. A deal is also key to unlocking millions of dollars in much-needed foreign aid.

"There has to be political change," he said. "And I believe it will come sooner than we think."

My question is why isn't there a public vote on something so detrimental to everyone in the U.S.?

Originally posted by Soldier of God
My question is why isn't there a public vote on something so detrimental to everyone in the U.S.?

Because that would be ridiculous.

Bernanke is a dictator.

The US is a fascist dictatorship run by a private cartel of banks.

I don't know about 2012 but one thing is for sure...the economy is going down.

Originally posted by mnemeth1

Originally posted by Soldier of God
My question is why isn't there a public vote on something so detrimental to everyone in the U.S.?

Because that would be ridiculous.

Bernanke is a dictator.

The US is a fascist dictatorship run by a private cartel of banks.

Get that through your thick head.

I can do without the name calling...

reply to post by mnemeth1


Yup....and don't you find it quite ironic that the FED's latest meeting was at Jekyll Island? Nothing like returning full circle.

We are literally standing on the edge.

Originally posted by OnTheFelt
reply to post by mnemeth1

 

Yup....and don't you find it quite ironic that the FED's latest meeting was at Jekyll Island? Nothing like returning full circle.

We are literally standing on the edge.

The system will implode.

They are literally trying to end our civilization.

The Feds greatest fear is that we will start using something other than the dollar for interpersonal trade. They would lose their stranglehold on our personal lives. Every dollar you hold is a note of debt,it is supposed to stand for that much value in real tangible currency. Gold,silver and copper,we have been off that standard for so many years that we will never recoup what they have stolen from us. We are done...stick a fork in us...

Originally posted by Soldier of God

Originally posted by mnemeth1

Originally posted by Soldier of God
My question is why isn't there a public vote on something so detrimental to everyone in the U.S.?

Because that would be ridiculous.

Bernanke is a dictator.

The US is a fascist dictatorship run by a private cartel of banks.

Get that through your thick head.

A rhetorical question is a figure of speech in the form of a question posed for its persuasive effect without the expectation of a reply (e.g.: "Why me?")[1] Rhetorical questions encourage the listener to think about what the (often obvious) answer to the question must be.

I can do without the name calling...

What I find unbelievable is they're finally admitting this in the open.

It's been speculated that this has been going on for awhile now, but secretly. It truly is getting bad now.

So what is the final straw that will send us into economic ruin? Is there an indicator to look for that will foretell when the collapse will occur?

Thanks in advance!