Global Economy Bursting?

[Big ole Boy]

Rumpelstiltskin - Bernanke to the rescue

I am reading Rumpelstiltskin to my child (spinning straw into gold) and teaching her the basics of arithmetic.

Now I am trying to explain to her the difference between freedom and slavery ...

 

[Randolph Kinney]

Fed to launch QE3 of $40 billion MBS each month

http://www.marketwatch.com/story/fe...billion-mbs-each-month-2012-09-13?siteid=bnbh

By an 11-to-1 vote, the Federal Reserve on Thursday decided to launch a new program of open-ended bond purchases -- so-called QE3 -- saying it will buy $40 billion of agency mortgage-backed securities each month, starting Friday. It's also keeping in place so-called Operation Twist, which consists of swapping short-dated securities for longer-term securities, as well as reinvesting the proceeds of maturing securities, so the central bank will be adding $85 billion of long-term securities each month through the end of the year. The Fed also extended its pledge to keep interest rates exceptionally low -- Fed funds rates are currently targeted at a rate between 0% and 0.25% -- from late 2014 to "at least through mid-2015." The Fed said it's acting "to support a stronger economic recovery" and expects the new program to put downward pressure on longer-term interest rates, support mortgage markets and help make financial conditions more accommodative. Richmond Fed President Jeffrey Lacker, the only dissent, opposed both the asset purchases and the description of the time period will remain exceptionally low.

 

[Randolph Kinney]

Fed: Unemployment won't reach 7% until 2014

http://www.marketwatch.com/story/fed-unemployment-wont-reach-7-until-2014-2012-09-13?siteid=bnbh

The Federal Reserve's forecast for unemployment assumes new policy basically won't do much for two years. The Fed is forecasting the unemployment rate will fall to a range of 7.6% to 7.9% in 2013 and to a range of 6.7% to 7.3% in 2014, from 8.1% in August. The Fed also for the first time forecast 2015 levels, when it sees the unemployment rate falling to a range of 6% to 6.8%. Federal Reserve members have shifted their thinking of when the first rate hike would be appropriate to 2015, according to the latest assessments released Thursday. There are now 12 of the 19 Federal Open Market Committee members -- including those that don't have a vote this year -- who think the first hike will be in 2015; in June, only 6 felt 2015 was the correct time.

 

[Randolph Kinney]

Gold at highest in nearly seven months after Fed

http://www.marketwatch.com/story/go...seven-months-after-fed-2012-09-13?siteid=bnbh

 

[Big ole Boy]

Fed to launch QE3 of $40 billion MBS each month

http://www.marketwatch.com/story/fe...billion-mbs-each-month-2012-09-13?siteid=bnbh

By an 11-to-1 vote, the Federal Reserve on Thursday decided to launch a new program of open-ended bond purchases -- so-called QE3 -- saying it will buy $40 billion of agency mortgage-backed securities each month, starting Friday. It's also keeping in place so-called Operation Twist, which consists of swapping short-dated securities for longer-term securities, as well as reinvesting the proceeds of maturing securities, so the central bank will be adding $85 billion of long-term securities each month through the end of the year. The Fed also extended its pledge to keep interest rates exceptionally low -- Fed funds rates are currently targeted at a rate between 0% and 0.25% -- from late 2014 to "at least through mid-2015." The Fed said it's acting "to support a stronger economic recovery" and expects the new program to put downward pressure on longer-term interest rates, support mortgage markets and help make financial conditions more accommodative. Richmond Fed President Jeffrey Lacker, the only dissent, opposed both the asset purchases and the description of the time period will remain exceptionally low.

... I keep picking up little news stories here and there about local and state governments raising property taxes .... and then getting lots of blow back .....

..... assessments are falling across the country ....

.... in so many ways real estate is the lynch pin to the american psyche ...

.... Keynesian progressive policies has to be able to pump up the american psyche through its real estate ...

.... and make temporary velocity occur

.... but the sentiment won't last ...

... google "Pat Fee" running for an Illinois public office ....

... taxing authorities have run out of red blood cells to suck on .....



..... what this $40 billion suppose to do for the 20 million great credit underwater home owner?

... this won't pump up real jobs - this will pump free money addicted markets

.... stock up !!!


..... whats the "shelf life of the Bernanke magic wand?" ......

..... getting shorter by the hour .....

....$40 bil a month

....then $100 bil a month

....1 tril a month ....

.... this rabbit hole ends with "Somewhere in Time" ... Wiemar Republic circa 1930's

 

[Big ole Boy]

US debt gets downgraded - QE employment myths

http://www.cnbc.com/id/49037337

Rating agency downgrades US debt .... everybody not buying into Bernanke's brilliance

.... I caught another article mentioning the fact that their is no real evidence that QE creates jobs ...

..... the only thing QE does is fatten the wallets of bankers and traders ....

.... Bernanke and the Keynesian media crowd continue to believe that they can jump start the economy by affecting the sentiment of the public with big headlines ....

.... the learning curve on job creation via FED QE has already been beta tested from 2009 till now ....

....the public and media can digest the latest tricks of the FED much quicker ......

....

... Herman Caine took a poll of business leaders during a recent speech - 1/3 of the businessmen would be closing if Obama is re-elected due anti-business policies, tax-megeddon and Obama care .

.... businesses will fold ...... economy will tank ...... no amount of QE can replace human capital

 

[Big ole Boy]

Who is Egan-Jones? .why should you care?

http://en.wikipedia.org/wiki/Egan-Jones_Ratings_Company



Egan-Jones Ratings Company, also known as EJR, was founded in 1995 and actively rates the credit worthiness of approximately 2000+ high yield and high grade U.S. corporate debt issuers. Egan-Jones positions itself as unique among nationally recognized statistical rating organizations (NRSROs) for being wholly investor-supported, a structure designed to minimize the potential for conflicts of interest in assessing credit quality[citation needed]. The firm was granted NRSRO status on December 21, 2007, making it the ninth such organization to be recognized by the SEC[citation needed].
The effectiveness of Egan-Jones' investor-supported credit ratings has been measured by third parties, including Richard D. Johnson of the Kansas City Federal Reserve, the Stanford University Business School and the University of Michigan's Business School.[2]
Sean Egan, principal of Egan-Jones Rating, appeared before Congress on October 22, 2008 and argued that issuers of complex securities "shopped" for ratings which resulted in a race to the bottom in terms of credit transparency. Rather than "beat up Moody's and S&P for behavior" they'd been financially motivated to pursue, the government needs to support a new business model paid for by investors, not issuers, to support the funding ecosystem which has so severely broken down, he asserted.[3] Egan-Jones on July 16, 2011, became the first NRSRO to cut its rating on the United States from AAA to AA+.[4] And on April 16 2012, Egan- Jones downgraded the credit ranking of the United States for the second time continuously and within 1 year from AA+ (Excellent) to AA (Very Good) assuming that the debt will reach $16.7 trillion dollars by the end of 2012 while the GDP will not grow further $ 15,7 trillion dollar limit and the debt to the GDP ratio will reach 112% of the national GDP which is the highest level since the WW II.



... All of your media outlets have ignored the (LATEST) downgrade of US debt by Eagan-Jones.

....when we attempt to separate the political from the economic .... Eagan-Jones is a good place to start ...

...anyone in here .... have you noticed how transparency has evaporated in the past 4 years?

....I realize almost everyone in here ....gets it .....

.... you know all those riots in the Middle-East ...... what the FED just did was to drop a bomb on these countries ..... people there spend 99 cents on every dollar they make just for food.

...FED easing maintains the political and ruling classes status quo .......... but ..... at the cost of global anarchy

 

[Big ole Boy]

The Mayfair Economy - your in it now

http://www.cnbc.com/id/49029923

Marc Faber Says Bernanke should resign ...

... if somehow the people could understand whats happening

.... If goof men sit and do nothing ..... well you know what happens ....

 

[Terrel L. Shields]

Faber is exactly right....

QE helps rich people whose asset prices go up and whose net worth then increases but it doesn’t flow to the man on the street who is faced with higher costs of living with price rises.

Look at gasoline..though the situation in the Islamic world is exacerbated by recent events created by an Egyptian filmmaker. Food...Everyone babbles on about "core inflation" "only 1.5% annually" - nonesense. If everything stayed the same, my insurance premiums alone increased my cost of living by well over 5% this year. It jumped from $940 to $1240 per MONTH...

 

[Big ole Boy]

Lets make the FED give us the money instead

Instead of the FED giving 40 billion a month to thier own smucks ... lets make thme give it to us .....

40 billion divided by 300 million would equal $133 dollars per person per month ....

.... now we got velocity

.... now we got real economic reform

.... now we got real investment

.... now we got real bottom up "people driven" government ....