Thread: $600 billion Fed funny money! Big LIE! QE2

$600 billion Fed funny money! Big LIE!

Interest-Rates / Quantitative Easing
Nov 04, 2010 - 08:29 AM

By: Larry_Edelson

This is it — the hot news that Wall Street was waiting for with bated breath.

Fed Chief Bernanke’s going to buy another $600 billion in Treasury securities to pump liquidity into the economy.

But it’s all one big, fat lie.

Here’s why:

First, because the whole concept of “buying Treasuriesâ€

So our dollar was just devalued more today..........wish I could go print up money when I needed it

Just an example: but I had to replace a tire on my truck last week since it had a very small puncture on the sidewall (not a good place). I just bought these tires 2 and a half years ago (but still have great tread on them) They cost 105.00 then but it cost me 160.00 to buy that same tire now. That is a 50% increase

Reasons Why QE2 Will Fail

Interest-Rates / Quantitative Easing
Nov 04, 2010 - 06:37 AM

By: Mike_Shedlock

Dr. El-Erian, CEO and co-CIO of PIMCO states several reasons why QEII will backfire.

1. The Fed is going it alone, without meaningful structural reforms
2. Emerging economies burdened by capital inflows in the wake of QEII will react with currency wars, protectionism, and capital controls
3. Resultant commodity price increases will increase input costs and reduce earnings of American companies

The position of El-Erian is interesting given that PIMCO founder, managing director and co-CIO endorsed QEII as discussed in Bill Gross' Arrogant Endorsement of Fed's QE Policy he calls History's Most "Brazen Ponzi Scheme".

Unintended Consequences of QEII

Mohamed El-Erian addresses the unintended consequences of Fed policy actions and the reasons Quantitative Easing will fail in QE2 blunderbuss likely to backfire. http://www.ft.com/cms/s/0/af370888-e77e ... ftcamp=rss

The Fed faces three problems, with its solo role being the first. Having warned in late August in Jackson Hole that “central bankers alone cannot solve the world’s economic problemsâ€

that's more than half a trillion dollars ....

amazing ... this is mad mad world we live in ....