U.S. Will Roll Out QE3 After S&P Rating Cut, Li Daokui Says

U.S. Will Roll Out QE3 After S&P Rating Cut, Li Daokui Says

www.bloomberg.com

The U.S. Federal Reserve will extend its program to purchase the nation’s debts and stabilize long- term interest rates after Standard & Poor’s downgraded its credit rating, according to an adviser to China’s central bank.

The Fed will roll out quantitative easing 3, a tactic to purchase treasuries,

S&P lowered the U.S. rating one level to AA+ from AAA for the first time yesterday while keeping the outlook at “negative,” citing the nation’s political process and criticizing lawmakers for failing to cut spending enough to reduce record budget deficits. The rating may be cut to

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U.S. loses AAA credit rating from S&P

These guys hafta be joking, QE3? That's the solution? Won't that guarantee future downgrades?

we definitely should have defaulted. Now the Fed are the only ones who will buy our debt? Or their own debt? They loan the money and then buy it back? I guess this is why the credit agencies have also given us a "negative" outlook. The snake is now eating it's own body faster than it can grow itself.

Time to kill the snake, sever ties to the Federal Reserve, write off the debt, freeze spending, and end the income tax to help spur the economy.

www.bloomberg.com
(visit the link for the full news article)

so the politicians make asses of themselves, and the policy makers use that as an excuse to further stress the system and make everyone afraid, and the fed does what every article I've read will just make things worse

so who is really making out in this ? wasn't a politician shorting the US ? betting on a default ?

so the bankers and lawyers win, and we lose

god damned disgrace

What if they know we are screwed and are just borrowing time to finish there bunker preparations, buying us more to to prepare as well.

Get ready fast

When the problem is debt the solution is to create more debt apparently. Well I cannot see a positive end to this at all.

reply to post by DrZERO
Stop the theives at the federal reserve from driving this ship into the rocks...
I dare say QE3 is too little too late but I hope I'm wrong. I fear for my childeren's future!

reply to post by DrZERO


QE3, QE4, QE5.......won't make one damn of difference except put the inevidable in slow motion

The UK has a National Debtline that the US goverment might want to try.. They offer free advice on how to manage their debt's and how to handle creditors. Their free Self Help Pack includes the following help & advice:-

Section 1 | Self Help Pack

Self Help PackDownload our self help pack that contains all the information and standard letters you need to deal with your own debt problem.

This pack shows you:

How to work out your personal budget
How to decide which debts to deal with first (priority debts)
How to work out offers of payment
How to deal with court procedures

Holy crap! they just don't learn.

its almost like they're standing there daring the others to follow suit

Almost like this

Obviously the US Gov is the black knight.

reply to post by SpaDe_


Yep, it reminds me of that old Jeff Foxworthy line were he pays his Camero off by writing a bad check. It was funny until it became true.

Who knew Obama was a redneck?

And I do apoligize to all the rednecks out there with that comparison.

It´s simply impossible. The FED is already leveraged 60-1 against its capital and furthermore the ratio of money supply to GDP is at almost 20%, an absolute all time high. For both these reasons the FED desperately needs to SELL govt. bonds and thus contract the money supply.

Originally posted by Deja`Vu
What if they know we are screwed and are just borrowing time to finish there bunker preparations, buying us more to to prepare as well.

Get ready fast

It is the only logical reason for wrecking the economy, they KNOW the future is turbulent to say the least.

Reread the OP please. There is a difference between 'according to the Feds' and 'according to the adviser to China's Central bank'.

QE 3 is not a definite thing at the moment. although stability is all for the best for USA right now, so that it can focus on creating jobs and earning revenue, something which it is FULLY CAPABLE of, as much of the worlds wealth is hoarded in USA now. There is nowhere else that is safe today.

QE3 if happen now, is nothing to be frightened of, as debts can be paid off. USA isnt Greece, China or Italy, with little resources or without democratic rule of law.

The ones who should fear QE is EU central bank performing QE in EU. Germany and France, the biggest fund contributors, will have hell to pay off bank despositors when the defaults goes into full swing.

Obama should just get it over and spend $100 Trillion.

The Chinese Yuan would then be equal to the US dollar. The Chinese wouldn't even be able to buy anymore RV's from America.

We'd all be poor. The Baby Boomers would leave the world on a huge spending binge...and since many of them didn't have kids...the States would get all of their assets.

Originally posted by SeekerofTruth101
Reread the OP please. There is a difference between 'according to the Feds' and 'according to the adviser to China's Central bank'.

QE 3 is not a definite thing at the moment. although stability is all for the best for USA right now, so that it can focus on creating jobs and earning revenue, something which it is FULLY CAPABLE of, as much of the worlds wealth is hoarded in USA now. There is nowhere else that is safe today.

QE3 if happen now, is nothing to be frightened of, as debts can be paid off. USA isnt Greece, China or Italy, with little resources or without democratic rule of law.

The ones who should fear QE is EU central bank performing QE in EU. Germany and France, the biggest fund contributors, will have hell to pay off bank despositors when the defaults goes into full swing.

The FED is at the end of its tether. It´s leveraged 60-1 against its capital so a relatively small rise in interest rates (and thus fall in price of its bond portfolio) would render it technically insolvent.

The ratio of money supply to GDP is almost 20%. The larger the money supply the lower short term rates need to be to avoid inflationary pressure (liquidity preference). They are presently at zero. End of the line.

If short term rates rise by 25 to 50 basis points the FED must either reverse all of QE2 and probably more (contract the money supply) or let the market correct the imbalance between the money supply and GDP through inflation, probably 30-50% at least.

So we raised the "Debt Limit", so we can borrow more. Yay!!!

So now the Fed has to loan it to us...cause China ain't gonna do it no more.

"China tells U.S. "good old days" of borrowing are over."

And STILL...no one even THINKS about bring ANY troops home!

What's the saddest, meanest, most angry emoticon anyone can type?

Anyway, put that here ( )!

reply to post by galdur


Let's wait till Monday nite New York time to see what the Feds will actually do.

I do believe that for USA, QE3 may not even be necessary to be invoked, as the fact is, much of the world's wealth is now hoarded in US banks across the country that pays no interest but is assured of their safety. Thus, USA's financial economy is FLUSHED with cash right now, as well as along with its allies, and certainly not in troubled smaller nations or dictatorships.

There is a bigger picture being played out than many will realize at this point of time that began with the financial crisis of '08. And it's not just about finances, but our very evolution and progress as mankind to the next level. Seems like the democratic republic of USA had been given the opportunity once again to be the lead in the test of our time....

reply to post by SeekerofTruth101


You're talking millenia in the making... we're on the cusp of ascension and everybody is too disassociated because that's what our current lifestyle is meant to do, disassociate us from the true realities... that we're being sold out right before our eyes into another cycle of sophisticated enslavement.


Remember that judaism, christianity, and islam all stemmed from one civilization/empire.
And as you go down the ladder... ????/ monarchies/ church/ government/ organized crime "mafia"...


????/ monarchies/ church control everything

The church instills fears and seeds certain thoughts and values in your mind and subconscious

The government is just the churchs arm extended into being in your face and pockets for everything, and not just on mass or when the collection plate is rolling around. The government also instills certain fears and values as well as conditions people, slowly, in increments almost like a clock just ticking away slowly but surely converging to an inevitable point but by making you jump through a million hoops of fire... you've become conditioned to accept it until you look around and realize how bad things REALLY have gotten and you have no clue how you got there.

Everything of "society" is slowly trickled down to us... and new technologies come to us slowly and over decades.
What we're allowed to know, what we're allowed to think.
The News we hear, what news we don't. What types of shows can be on TV, and those that cannot.
What shows are deemed popular, which shows are not...
Everything in "society" has already been accounted for... there's a vast ocean of information and possibilities if you're just willing to unplug from the same circular ways of thinking.

reply to post by SeekerofTruth101


There's alot of cash in the USA because they keep printing it non-stop AND the fact that no country want to even touch it right now.

When Americans ask me if they can pay in USD for their goods, I tell them not even the Mexicans will touch it so why do you think us clever Aussies would?

this vid says it all.