Lesson not Learned: The Fed Floods the Market with Fiat Money

By LUIS MIRANDA | THE REAL AGENDA | SEPTEMBER 14, 2012

Quantitative Easing is no longer an option for the private Federal Reserve and neither for the US. QE1 and QE2 did not avoid the fall of the United States, so QE3 did not make sense. Instead, Ben Bernanke has implanted a new fiat money manufacturing scheme I’d like to call Unlimited Easing.

In the same fashion that the European Central Bank is now able to buy unlimited amounts of debt from bankrupt countries like Spain, the Fed has given itself the prerogative to buy unlimited amounts of mortgage loans in an attempt to artificially lower interest rates and ‘stabilize’ the crashing home loan market. The $64 million question is how much will this unlimited easing help to rescue the mortgage market? Not much according to Ben Bernanke himself, who has said the move is not a panacea.

As some US media reported, the Fed once again pulled the trigger, but only to shoot the country on the other foot; an action that will certainly result in more difficult times for Americans. The U.S. Federal Reserve announced the ‘liquidity boost’ to help the economy and that such injection of fiat money will continue, which according to Ben Bernanke, shows the Fed’s commitment to help with the recovery. Double speak? Mind games?

At the end of their two-day meeting, the Fed said in a statement that it intended to “launch a program to buy mortgage-backed securities valued at $40 billion a month” and that the program would not have a limit in the amount spent or a deadline to conclude.

The organization led by Ben Bernanke said that if you add the “Operation Twist”, a program to swap short term bonds for long term ones, to the new scheme to buy mortgage backed securities, the Fed will be buying about $85 billion a month. Also, the U.S. central bank said it will keep interest rates at exceptionally low levels between 0% and 0.25%, until “at least mid-2015″, instead of the end of 2014 as announced in January of this year.

The Fed said that “highly accommodative monetary policy will remain appropriate for a considerable time until the economy strengthens.”

The chairman of the U.S. Federal Reserve (Fed), has defended the new measures adopted Thursday by the institution, while economists question the validity of a program that not even Bernanke sees as a real solution to the real problem. The chairman of the Fed insisted in his speech that his actions are not the “panacea” and “do not cure all ills” now affecting the economy.

In the press conference following the meeting of the Federal Open Market Committee (FOMC) of the Fed, Bernanke said that monetary policy alone — especially the wrong kind — will not solve all problems by itself, so politicians have to do their part. He also, emphasized that the Fed can not be rushed when leaving a highly accommodative monetary policy and pledged to hold such policy until the recovery is sustainable and allows for job creation.

However, he added that no set of policies can be extended until the objectives of his mandate are achieved. Those supposed goals include a significant improvement in employment, manufacturing and consumer spending. There is no need to say that under the current policies and the new ones the Fed has adopted, none of the goals will be ever accomplished. In fact, it is quite the opposite. The continuous unrestricted pumping of fake money into the economy will only prolong the disease.

Bernanke acknowledged that the situation in the labor market is still assessed as concerning, and stressed that the current level of economic recovery is not good enough to have the unemployment rate fall.

About Editor
The Real Agenda is an independent publication. It does not take money from Corporations, Foundations or Non-Governmental Organizations. It provides news reports in three languages: English, Spanish and Portuguese to reach a larger group of readers. Our news are not guided by any ideological, political or religious interest, which allows us to keep our integrity towards the readers.

Comments are closed.

Daftar Akun Bandar Togel Resmi dengan Hadiah 4D 10 Juta Tahun 2024

Togel resmi adalah langkah penting bagi para penggemar togel yang ingin menikmati permainan dengan aman dan terpercaya. Tahun 2024 menawarkan berbagai kesempatan menarik, termasuk hadiah 4D sebesar 10 juta rupiah yang bisa Anda menangkan. Anda perlu mendaftar akun di Daftar Togel yang menawarkan hadiah tersebut. Proses pendaftaran biasanya sederhana dan melibatkan pengisian formulir dengan informasi pribadi Anda serta verifikasi data untuk memastikan keamanan transaksi. Setelah akun Anda selasai terdaftar, Anda dapat berpartisipasi dalam berbagai permainan togel berbagai fitur yang disediakan oleh situs togel terbesar.

Bermain di Link Togel memungkinkan Anda memasang taruhan dengan minimal 100 perak, sehingga semua kalangan bisa ikut serta. Meskipun taruhan rendah, Anda tetap bisa memenangkan hadiah besar dan mendapatkan bonus. Untuk mulai bermain, Anda harus mendaftar terlebih dahulu.

Bagi pemain togel yang ingin menikmati diskon terbesar, mendaftar di situs togel online terpercaya adalah langkah yang tepat. Bo Togel Hadiah 2d 200rb tidak hanya memberikan jaminan keamanan dalam bertransaksi, tetapi juga menawarkan berbagai diskon untuk jenis taruhan tertentu. Diskon yang besar ini memungkinkan pemain untuk menghemat lebih banyak dan memasang taruhan dalam jumlah yang lebih banyak. Dengan begitu, peluang untuk mendapatkan hadiah juga semakin tinggi, sekaligus memastikan bahwa setiap taruhan dilakukan di situs yang aman dan resmi.

Link Slot Gacor Terpercaya untuk Menang Setiap Hari

Slot gacor hari ini menjadi incaran para pemain Link Slot Gacor yang ingin menikmati peluang jackpot besar hanya dengan menggunakan modal kecil, sehingga mereka bisa merasakan pengalaman bermain yang lebih menyenangkan dan penuh keuntungan.

Situs dengan slot Mahjong Ways gacor memberikan jackpot dan Scatter Hitam lebih sering di tahun 2024. Pastikan memilih situs terpercaya yang menyediakan fitur scatter unggulan, sehingga peluang Anda untuk menang lebih besar dan aman.

Dengan Situs Slot Depo 5k, Anda bisa bermain dengan modal kecil namun tetap memiliki kesempatan besar untuk meraih hadiah. Banyak platform judi online kini menawarkan pilihan deposit rendah ini, sehingga pemain dengan budget terbatas tetap bisa menikmati permainan slot favorit mereka. Bermain slot dengan deposit kecil seperti ini tentu memberikan kenyamanan bagi pemain baru maupun veteran.

Situs Slot Gacor Gampang Menang RTP Live Tertinggi

Strategi bermain slot online kini semakin berkembang, terutama dengan munculnya data rtp slot gacor tertinggi. Para pemain dapat memanfaatkan rtp live untuk memilih slot gacor dengan rtp slot yang terbaik, memastikan mereka memiliki peluang menang yang lebih besar. Slot rtp tertinggi yang tersedia hari ini bisa menjadi panduan penting bagi siapa saja yang ingin menikmati permainan yang lebih menguntungkan. Dengan memahami rtp slot online, pemain dapat bermain dengan lebih strategis dan mendapatkan hasil yang lebih memuaskan.

Related Links:

Togel178

Pedetogel

Sabatoto

Togel279

Togel158

Colok178

Novaslot88

Lain-Lain

Partner Links