The Fed will Save Us! $1 Trillion of Annual Bond Buying

[Jordan]

Ben Bernanke wisely decided to continue to expand operations at the Fed. The Fed will continue to buy $40 billion of mortgage-backed securities each month as well as $45 billion of long-dated Treasuries as operation twist expires.

The Fed kept short-term rates near zero, and they will stay this low as long as the unemployment rate remains above 6.5% and inflation stays under 2.5%, the Fed said.

http://blogs.wsj.com/marketbeat/2012/12/12/more-fed-stimulus-on-the-way-stocks-rise/

You don't want to be on the wrong side of Fed policy. Bernanke is telling us that:

1) Stocks are great investments.
2) Junk bonds are great investments.
3) Cash is cheap.
4) The Fed is committed to returning the US to economic growth, which means we all benefit.

 

[TheTexan]

4) The Fed is committed to returning the US to economic growth, which means we all benefit.

Yay!

 

[oyarde]

I somehow have less faith in the Fed than others and do not choose to believe they will "save " me.

 

[oyarde]

I picked up a few bales of straw today for my chickens , going to change my oil tomorrow, probably pick up some more ammo ....

 

[hazek]

*FED BOOSTS QE WITH $45 BILLION IN MONTHLY TREASURY PURCHASES
*FED TO KEEP BUYING MORTGAGE BONDS AT PACE OF $40 BLN PER MONTH
*FED SAYS MONTHLY PURCHASES TO TOTAL $85 BLN
*FED ADOPTS ECONOMIC THRESHOLDS FOR POLICY TIGHTENING
*FED: RATES TO STAY EXCEPTIONALLY LOW WITH JOBLESS ABOVE 6.5%
*FED: RATES TO STAY LOW WITH INFLATION SEEN AT 2.5% OR LESS



This can only end one way and we all know which.

 

[HOLLYWOOD]

Who determines the value of all these assets purchased?

Where's THE FED getting these Trillions?

 

[CaptUSA]

*FED BOOSTS QE WITH $45 BILLION IN MONTHLY TREASURY PURCHASES
*FED TO KEEP BUYING MORTGAGE BONDS AT PACE OF $40 BLN PER MONTH
*FED SAYS MONTHLY PURCHASES TO TOTAL $85 BLN
*FED ADOPTS ECONOMIC THRESHOLDS FOR POLICY TIGHTENING
*FED: RATES TO STAY EXCEPTIONALLY LOW WITH JOBLESS ABOVE 6.5%
*FED: RATES TO STAY LOW WITH INFLATION SEEN AT 2.5% OR LESS



This can only end one way and we all know which.

Free candy?

 

[Danke]

 

[ronpaulfollower999]

It wouldn't surprise me if the OP is one of the people who bought Facebook at $42.

 

[ctiger2]

I'm praying for a Jesus 2.0 to come down and toss these mother-fucking-money-changers out.... AGAIN!

DAMMIT!!! CAN SOMEONE PRETTY PLEASE START ARRESTING THESE SATANIC CRIMINALS? GOOD GOD!

 

[Seraphim]

Buy silver, remove your cash from the banking system. Build local systems.

Money changers neutralized.

I'm praying for a Jesus 2.0 to come down and toss these mother-fucking-money-changers out.... AGAIN!

DAMMIT!!! CAN SOMEONE PRETTY PLEASE START ARRESTING THESE SATANIC CRIMINALS? GOOD GOD!

 

[Jordan]

It wouldn't surprise me if the OP is one of the people who bought Facebook at $42.

LOL. Yeah right.

 

[jclay2]

I really do not know what to make of you anymore. You just said that what ben bernanke is doing is wise? Sorry, my sarcasm sensor has been turned off with regard to any of your posts. So are you really serious?

 

[seraphson]

Weird that this is just coming out now, I called it here five days ago:
http://www.ronpaulforums.com/showth...g-up-9.6-Year-over-Year&p=4764985#post4764985

 

[Jordan]

I really do not know what to make of you anymore. You just said that what ben bernanke is doing is wise? Sorry, my sarcasm sensor has been turned off with regard to any of your posts. So are you really serious?

You have to monetize the debt to stave off deflation. The more money going around, the less the debt/fiscal problems matter.

 

[Zippyjuan]

Who determines the value of all these assets purchased?

Where's THE FED getting these Trillions?

The value is determined by an auction process similar to the one the Treasury uses to sell the notes. They don't purchase directly from the US Treasury usually. The Fed announces how many notes they want to purchase and the authorized Primary Dealers (who bought their Treasuries either directly from the US Treasury or from other holders of the notes) bid against each other- offering both a price and how many notes they want to sell. The Fed takes all of their secret bids and sorts them according to the lowest bid price. It takes the one with the lowest bid first and works their way through towards the highest bids until they have enough offers to be able to purchase the amounts they want. The closing price is the highest bid in the "accepted" stack which allows them to get that amount of Treasuries- and all successful bidders get the same price for that auction.

They can "invent" the money (some use the term "print" but that is not accurate- the Treasury does any actual physical printing of money) needed or it can come from money they earn from other deals and interest collected. In this case, the money will be pretty much all "invented".

 

[jclay2]

You have to monetize the debt to stave off deflation. The more money going around, the less the debt/fiscal problems matter.

So the truth comes out. You support the Fed! I believe you are the first ron paul supporter I have ever met that supports the the Central Bank. Seriously, why are you here?

 

[Jordan]

So the truth comes out. You support the Fed! I believe you are the first ron paul supporter I have ever met that supports the the Central Bank. Seriously, why are you here?

Actually, there are quite a few people in the Ron Paul camp who don't support getting rid of the Fed. They're just not going to say that here.

 

[jclay2]

Actually, there are quite a few people in the Ron Paul camp who don't support getting rid of the Fed. They're just not going to say that here.

I didn't even say "end the fed"! You said that bernanke's decision to debase the currency was a wise decision. Even the people who support allowing the fed to exist in the ron paul camp do not support them debasing the currency. And by your own admission, that is what big ben is doing. Keeping prices from going down and having things become more unaffordable is the very definition of debasement.

 

[Jordan]

I didn't even say "end the fed"! You said that bernanke's decision to debase the currency was a wise decision. Even the people who support allowing the fed to exist in the ron paul camp do not support them debasing the currency. And by your own admission, that is what big ben is doing. Keeping prices from going down and having things become more unaffordable is the very definition of debasement.

Fine, remove end the fed. There also people here who support other measures like GDP targeting with monetary policy, a level annual increase in money supply, etc. Just because you only hear from people who are against the Fed's moves doesn't mean every RP supporter is. I'm here because I agree with most of Ron Paul's positions, not all of them.