Quantitative Easing Explained

[ATeam]

Educational Video on YouTube about quantative easing and the Federal Reserve Bank.

 

[greg334]

Thank you Phil, you made my night with that one.

It should be shown to every school kid to show them why they will be in debt for the rest of their lives.

 

[milpig]

That's some good stuff there. I sent it to a friend who still thinks everything is peach in America.

 

[RLENT]

It should be shown to every school kid to show them why they will be in debt for the rest of their lives.

And follow it up with Neal Fox's music video .... to give 'em an idea of what needs to be done about it:

F**k The Fed

 

[witness23]

Independent Fed Chief appointed by Bush does $600 Billion Stimulus immediately after the election!

What does this say about the need for the $700 Billion Obama stimulus in 2009????

Fed to Buy Extra $600 Billion of Treasuries to Boost Growth.

The Federal Reserve will buy an additional $600 billion of Treasuries through June, expanding record stimulus and risking its credibility in a bid to reduce unemployment and avert deflation.

The Fed made this announcement the day after the election to avoid appearing to justify the Democrats just before the election, because the obvious conclusion would be that Obama and Pelosi were right to do the stimulus in 2009.

The amount of this stimulus is almost as big as the original Obama stimulus. It adds to the deficit. It is printing money. It would have been more responsible for Congress to be in charge of this type of stimulus.

Now, Bernanke is saying more stimulus is urgently needed to avoid deflation, and, since Congress is obviously not going to do it, he will. And there is nothing you can do to stop him.

Still think Obama and Pelosi are stupid for doing stimulus?

Does it bother your conscience at all that you people have been ranting and raving about the stimulus when the designated expert obviously believes it is totally necessary and appropriate? What do any of you know, compared to Bernanke, the Fed Chief?

Does it bother you that the Republican leadership privately accepts this stimulus as reasonable and necessary, while publicly pretending they oppose it?

Does it bother you that the blame you have placed on Obama might be unfair and wrongheaded?

Does it bother you that Republicans just won an election based upon a totally bogus argument?

Is it possible you have been used, or does the truth matter to you at all?

The Fed Chief would be doing this no matter how many Tea Partiers were in Congress. He's independent, for the obvious reason that the guy with his hand on the printing press cannot be the tool of any politician. Did I mention Bush appointed him?

If you think he's screwing up, what is his motive? Is he a commie?

When are you going to accept the fact that there is a lot about the financial underpinnings of a prosperous society that you know absolutely nothing about? Yet, you are so loud and obnoxious in your opinions.

 

[jimby82]

Does it bother your conscience at all that you people have been ranting and raving about the stimulus when the designated expert obviously believes it is totally necessary and appropriate? What do any of you know, compared to Bernanke, the Fed Chief?

Well, this guy seems to think it unnecessary, but hey, he is only the president of one of the Fed banks, so I guess he doesn't really count.

Fed's Fisher Says Purchases May Be `Wrong Medicine' For The U.S. Economy


The Federal Reserve’s decision to undertake a second round of large-scale Treasury purchases may be prescribing the “wrong medicine” to the economy’s ailments, said Richard Fisher, president of the Fed bank of Dallas.

The 61-year-old regional bank chief, who votes on the rate- setting Federal Open Market Committee next year, identified a number of costs to the Nov. 3 decision, including a weaker dollar and perception the Fed is “monetizing” the government’s debt by creating money to finance the shortfall.

“I asked that the FOMC consider that we might be prescribing the wrong medicine for the ailment from which our economy is suffering,” Fisher said during a speech today in San Antonio. “The remedy for what ails the economy is, in my view, in the hands of the fiscal and regulatory authorities, not the Fed.”
While saying he could not be certain that several billion dollars of asset purchases would spawn job creation and demand, Fisher outlined a case against the stimulus.

“I could envision such action would lead to a declining dollar, encourage further speculation, provoke commodity hoarding, accelerate the transfer of wealth from the deliberate saver and the unfortunate, and possibly place at risk the stature and independence of the Fed,” he said.

“For the next eight months, the nation’s central bank will be monetizing the federal debt,” Fisher said in his speech before the Association of Financial Professionals. “This is risky business.”

Loss Potential

“The more we engage in a policy of asset purchases that moves us further out the yield curve -- and the more we laden our balance sheet with price-sensitive assets -- the greater the likelihood of realizing a loss on our holdings,” said Fisher, who has been president of the Dallas Fed since 2005.
Even with those arguments, the regional chief said, “I respect the will of the committee.”

The Fed agreed last week to buy an additional $600 billion of Treasuries through June to help boost growth. Including Treasury purchases from reinvesting proceeds of mortgage payments, the Fed will buy a total of $850 billion to $900 billion of securities through June.

Fisher told reporters after his speech that he isn’t surprised by short-term currency moves since the Fed’s Nov. 3 decision. The Dallas chief also declined to comment on changes to the FOMC next year, when he and two other regional Fed presidents who have questioned the need for new asset purchases become voting members.



Fed's Fisher Says Purchases May Be `Wrong Medicine' For The U.S. Economy - Bloomberg

 

[chefdennis]

I guess you don't have a problem with the printing of paper that will reduce the value of the dollar... i mean Bernanke has said that we need to "devalue" the dollar..... nothing like deliberately lowering your paying power because other countries are recovering faster then we are and they should be forced to slow their growth because your economy is worse then theirs...oh wait this is the adminastration that believes we should share the wealth...i guess they think others countries should share their wealth or growth with us since we are not recovering like they are...they should suffer as our economy is because of your economic policies.....

 

[moose]

This guy is worthless ,
he had only 2 tools in his tool box .
after using the first tool to cover up for the gov. scrowups - interest rates at 0 .
he is using the only other tool he got - the printing machine .