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To: Seismo who wrote (54703)9/21/2013 6:42:36 PM
From: GROUND ZERO™3 Recommendations

Recommended By
Fiscally Conservative
Oblivious
sandintoes

  Respond to of 223351
 
I fully agree, it's completely criminal... they're extorting money from everyone by devaluing the currency only to help the banks cover their own foolishness...

GZ



To: Seismo who wrote (54703)9/22/2013 3:32:58 PM
From: Copeland1 Recommendation

Recommended By
fred woodall

  Read Replies (1) | Respond to of 223351
 
The Fed really doesn't have much of a choice. QE has two purposes:

1. To provide liquidity to their member banks, whether through the monetization of debt, the purchasing of bad assets (MBS), or by stabilizing the value of the countless billions of dollars in derivatives that these banks hold.

2. Provide liquidity to the Federal Government by financing the budget and its entitlement obligations at historically low interest rates.

The hope is that by throwing enough government directed money at society, the economy will gradually improve in a Keynesian manner to the point that the Fed can start unloading its bond purchases to a greater fool.

If not, allowing enough money to flow will eventually cause inflation to rise, which in turn, will dissolve the debt over a long period of time.