Fed boosts plan to inject billions into the US economy

No one must buy American goods and give a living wage to Americans

Simple economics 101

 

At this point we are so totally committed to whatever madness these central bankers throughout 'the West' have cooked-up for the past 12 years that there's no way we can escape the collapse that's sure to come at some point.

The BEST we can hope for now is that this 'combine' consisting of the 'Fed', the ECB, the Bank of England, etc., etc., simply continue indefinitely with their endless rounds of "stimulus", bail-outs, and bond-buying -- while they punish savers with near-zero interest rates -- the people who have been responsible enough to actually SAVE money for contingencies and their retirement.

Realization: nobody in any of these central banks, or the government they control wants anybody to be SAVING money -- no, you're supposed to just run right out and blow every dime you have buying tons of crap you can't afford -- and then -- go BORROW more money to buy even MORE crap you can't afford...! That's the only way they can keep their 'fraud balloon' aloft today, because the CONSUMER is 70% of economies in 'the West'....

. "Hey, does anybody else hear a 'hissing' noise....?"

 

I don’t think the Fed should be doing this.
At record low unemployment these actions can cause inflation.

 

They, pretty much, have to.

It is a momentary response to a momentary confluence of events.

Regulators and legislators should be working to craft a permanent solution to the problem, rather than applying this Band-Aid®.

There has yet to be any sign of inflationary pressures in the data. The Fed. appears to have a lot of room to move.

Without action, the overnight lending rate would rise precipitously, and stay high for some time. How long? Who knows? It would come back down, but for however long it was high, economic activity would be ground to a halt.

Check out the spike in overnight rates from this past September. The Fed. injected a ton of emergency cash to deal with it:



Still no inflationary pressure:

https://www.bea.gov/data/personal-consumption-expenditures-price-index

 

Yeah, You know the centrifuges we know weren't spinning.
Oh, I did check. The IAEA never requested a visit to an Iranian base. Funny that.

 

The support they gave based on Bushies lies about WMDs. That support.

 

I read somewhere just a few days ago that the price index was higher than expected for last month. To me it makes sense - with such low unemployment, a lot of people are working and spending their earnings. Because there is a competition between employers for employees, they must either pay more or offer better benefits.
All of that causes demand-pull inflation.
Now if they inject a crap load of cash into the economy, extra cash might result in higher wages, which will fuel inflation even more.

Even though today’s inflation is relatively high, it’s not nearly as high as it used to be decades ago.
Still, once it starts, it’s hard to control it. That’s why I’m afraid that the Fed is playing with fire. The only good benefit of inflation is the fact that debts get eroded, including the US debt.

 

"All of that causes demand-pull inflation."

Be careful with words like 'causes'.

It's better to use a word like 'factors'.

The classic definition of inflation is 'too much money chasing too few goods'

If the desire to spend outstrips the available goods, inflation occurs.

Likewise, if an increase in the desire to spend is met with an increased supply of goods, inflation cannot occur.

"Even though today’s inflation is relatively high.."

I haven't seen any evidence of that.

The data, that I've been able to find, shows no substantive increase in the rate of inflation. I had to search hard, just to find that October data.

 

Yeah, "funny that"... funny like having a hydrogen bomb going off in your back yard!

If you really did read any of the many pages of material I suggested as a cure for your ignorance about the Obama/Kerry 'deal' with Iran, you should KNOW by now that the Iranians staked out the rock-solid position that they FLATLY REFUSED to allow any inspections whatsoever at any place in Iran they they unilaterally designate to be a "military" site. Period -- THE END.

And, if the wonderous IAEA never even bothered to 'request' a 'visit' to a designated Iranian military site, it's a very clear indication of just what a useless bunch of half-witted bureaucrats the IAEA are!

You may feel perfectly comfortable with 'inspectors' committed to that degree of half-assed 'rigor' and 'persistence' keeping nuclear weapons out of the hands of Iran's Islamo-Nazi 'Doomsday' fanatics, but I don't trust any of them as far as I can spit -- and fortunately, now that the Obama/Kerry 'circus' is gone, neither does Trump!

 

One thing we know for sure is that they are again enriching using the same centrifuges we knew they were not using.
So much better.

 

I'm glad you're happy. I hope you're just as happy when the nuclear war in the Middle East begins!

 

Anyway, back on topic -- what's really "funny" is how the Fed and all these other economic 'think-tanks' calculate what "inflation" really is!

It's downright hilarious how they keep on missing HUGE increases in the prices of so many things that people have to actually BUY! Does anybody seriously believe all this bullshit about how the price of houses, rents, leases, utilities, taxes, groceries, hardware, and dozens of other things haven't gone WAY over this mystical "2%" calculation during the past ten years...?!

Want to have more "fun" amusement? Compare airfare prices today versus those of ten years ago...(and don't forget to include your "baggage fees")

 

Hey. Don't look at me. It was Captain Bone Spurs that got their program restarted.

 

This is very irresponsible and misleading. There is not a single member of the FOMC that has remotely hinted anything related to another round of QE... Not one...

 

Trump gave the Taliban money just to meet, and none of it was their money, but USA taxpayer money.

 

"Their program" never stopped, Ronnie. Those who imagine that the Iranians ever 'stopped' are the same kind of people who believe lying bastards like Obama when they say we're all going to save $2,500 every year on our healthcare expenses with scams like 'Obamacare'! Do you know anybody like that, Ronnie?

I pity them -- but not enough to just kick back, smoke a 'j', and blithely allow a bunch of murderous Iranian Islamo-Nazis threaten the civilized world with thermonuclear hydrogen weapons....

. Back on topic -- do you have any idea how much the price of 'grass' has gone up!

 

Typical Trumper. The whole world could disagree with you and you would just call it a deep state plot. You could sit in a room full of silent centrifuges and swear they were running.

 

Without inflation, however, the Fed has no way to monetize the debt which could eventually lead to hyperinflation and devaluation of the dollar. Q4 only exacerbates as we continue to print and flood the market with un-backed dollars.

 

When me and my 'buds' were young and stupid, "Acapulco Gold" was selling in Austin, Texas for $10 - $12 an ounce. What's an ounce of quality grass go for now? My main point is that the "official" calculation of inflation is a JOKE! It's much, much higher on many things that people actually have to buy and pay!

 

Ah, but your graph does not take into account taxes being assessed on the legal product, versus what was black market.

 

Yep. We will just dump money into the system but not call it QE. Easy..

 

Yeah, I don't know. I don't use the stuff. But the price is coming down, not going up.

 

Repo/Reverse Repos are very much a conventional part of FOMC actions in monetary policy. Nothing remotely similar to QE.

 

Well, I live in the first state to legalize it and I assure you, there is still a substantial black market.

https://www.pbs.org/newshour/show/h...alization-strengthened-the-drugs-black-market

 

Yeah, It's just an overnight problem that the FED plans to put 3/4 of a trillion dollars into to fix.