No Surprise, QE3 on the Horizon. Bernanke and the Fed's Pledge

Federal Reserve Chairman Ben S. Bernanke may keep reinvesting maturing debt into Treasuries to maintain record stimulus even after making good on a pledge to complete $600 billion in bond purchases by the end of June.

Bloomberg

So last night I watching RT with a panel talk. The commentator from Harvard is going on saying that no restructuring is necessary for the US economy and the QE2 is doing the job, growth is back up and unemployment is down. so there's no need for QE3.

Weeeeeeellll . Not in so monay words, from the Fed but if this was the case, why would Bernanke and buddies be affirming commitment to the monetisation of debt post June, citing weak economy and inflation.

Because just like everyone else, they know what is going on, know what is happening. and without this the gravy train de-rails.

My question just how long really do they intend to keep bleeding, resuscitating and bleeding the economy, under the pretence that all is good and rosy in the land of the Free. In the end and it will be the end soon. the crash will be harder than anyone expected. Well maybe us here ion ATS.

Could it not be, that as B.H.O adopted this situation from his illustrious predecessor, knowing he cannot do anything to reverse it, has ordered that the FR will keep things running until his term completes, so he can pass it on for some other punk to shoulder the blame, just as GWB did with him.

If this is to be believed, then this will continue hemorrhaging with obvious damage being done, worsening situation. and will start to fall apart as the elections kick off next year. That is of course unless China start to pull out more and more, or more pressure forces comex into default. Or the opposition / bond market refuse conditions to allow the US to raise the debt ceiling. forcing to US into a premature default situation.

All I can say, is well done to them for keeping the party going this long. but all will be revealed soon!

How can you terminate a ponzi scheme without massive repercussions? I understand the economy will sink likely as there will be much less liquidity in the markets.

what is the qe2, other than a cruise ship named after the leader of the commonwealth?

S & P already warned the US government about it's profligacy. Maybe now the extreme left that's dumb enough to believe their own hype about the country not being broke will wake up? Not likely.

Maybe the establishment right wing will wake up and realize they can't butter the bread of their interests anymore either...But I doubt it.

Congress could care less. They're going into self preservation mode as we speak. The market WILL shove our garbage right back at us and rightfully so. Because the American people are largely whiny bastards who can't live without their hand outs, welfare, entitlements and Mr. Big Brother wiping their butts for them.

We've become a nation of takers rather than producers and givers and many of us could care less about where the money comes from. Well there it is folks, there's your warning. Either get up off your lazy useless eater asses and do something to save yourselves or be eaten by the circumstances you created.

No more sympathy from me. No more sugar coating. No fate but what you make.

reply to post by lewman


Surely that is a satcastic comment. Or maybe you have been in a trance for the last coupla years!

Short for Quantitative Easing. Essentially printing money up the wazoo!!!

You guys might be interested in reading this commentary from Graham Summers.....

Why the Fed Is FREAKING OUT

In terms of cronie deregulation, flagrant subprime pumping, and irresponsible monetary policy, the 'Maestro' has already been outed as the primary culprit. I doubt history will be any kinder on his water-boy Ben B.

Unfortunately, these people have no conscience.

Originally posted by JakiusFogg
Could it not be, that as B.H.O adopted this situation from his illustrious predecessor, knowing he cannot do anything to reverse it, has ordered that the FR will keep things running until his term completes, so he can pass it on for some other punk to shoulder the blame, just as GWB did with him.

In order for the above to be true, the current punk would have presumable shouldered the blame the previous punk supposedly passed off to him. Nothing of the sort has happened. In fact, I have never seen buck passing and refusal to accept any blame whatsoever the likes of what we have witnessed over the past 2 and a half years. I think if this whole house of cards fell right now the guy would lay 100% of the blame on Bush and steadfastly refuse even a hint of responsibillity. It is almost like dealing with a toddler in that regard as a toddler always considers themself blameless and will blame siblings for everything.

reply to post by burdman30ott6


That may well be true, but as we know every politician is primarily concerned with their legacy, and earning fee potential on the dinner circuit.

What sort of free could he command if his legacy is that of being the wheel-man the night the Titanic hit the proverbial iceberg??

Although politically his shoulders may be made of teflon, politically he would know that in the eyes of history he name would be associated with, should it happen, the complete collapse of the economy. his fault or no/

reply to post by OBE1


well that is a impressive spike .....a nice injection may cover the costs of banks fraud-gate?

M1 mult...i.e velocity of money still in the tank!

.765 lowest since records began!

if the fed doesn't roll out QE 3 risk assets tank!

they can roll over whatever they like i.e QE lite v. 2.0 which = appox 32 billion/ month inflows compared to 100plus /billion now.

This is a real simple thing. After the dollar drops look to the empty lot next to your home. grow food there. If you can get a tiller and gas for it seeds ect to grow your own food. That's all that counts now. Like Cuba in the 90's Grow your own food goats are cheap and easier then cattle. If you can organize your neighborhood to get in the same boat then the better for you. Everyone I know knows something is coming. If your in the urban areas of our country get the land ready now don't wait. you should already have a crop planted if your climate is right. Hey if it doesn't drop and fall like a suicide from the golden gate you will have a great garden. Organic food and a better diet.