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Bernanke’S Qe3 Faces Stiff Resistance

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http://www.telegraph.co.uk/finance/economics/8182554/Bernankes-QE3-faces-stiff-resistance.html

Transcripts suggest that Mr Bernanke is sufficiently worried about the risk of an economic relapse next year - and a slide towards deflation - that he is already mulling further “credit easing” or QE3 as it is dubbed. The US jobless rate spiked to 9.8pc in November, while long-term unemployment is the highest since the 1930s.

However, Mr Bernanke faces a shift in the balance of power as hard-liners join the Fed’s voting body this year. Jeffrey Lacker from the Richmond Fed said he was “not well-disposed” to bond purchases, suspecting that the “risks exceeed the benefits.” Kevin Warsh from the Fed board has raised doubts, as have the Fed chiefs from Dallas, Philadephia, Minneapolis, and Kansas.

Mr Bernanke’s stated purpose is to force down borrowing costs, yet inflation fears have instead pushed up yields on 10-year Treasuries by 60 basis points to 3pc since early October. Long rates are used to price mortgages and company debt. Oil has shot up to $90 a barrel. This acts as a tax on US consumers.

The push for QE3 comes as Democrats and Republicans play political chicken over the extension of the Bush tax cuts. Unless Congress can cut a deal by mid-December, taxes will automatically rise. Fiscal tightening will occur by default. Gridlock will also push up capital gains, prompting a likely stock sell-off as investors rush to beat the deadline.

So would the date the tax cuts expire be a good one to call a "black day"?

Forcing down borrowing costs so far has resulted in the creation of 0 US jobs. Clearly what's needed is to keep borrowing rates even lower so that the jobs get created by the magic job fairy.

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http://www.telegraph.co.uk/finance/economics/8182554/Bernankes-QE3-faces-stiff-resistance.html

So would the date the tax cuts expire be a good one to call a "black day"?

Forcing down borrowing costs so far has resulted in the creation of 0 US jobs. Clearly what's needed is to keep borrowing rates even lower so that the jobs get created by the magic job fairy.

No silly, it isn't about creating jobs, it's about monetising US debt so as to try to create the illusion that there is still a market for spiralling US debt and thereby maintain low interest rates and prevent a direct default on said debt and default on it via inflation instead. It also keeps interest rates low for consumers so they don't default as fast, thereby hopefully saving the banks that run the show from collapsing.

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Watch what they do, not what they say.

Anybody who hasn't cottoned on to the fact that those that run society usually do the exact opposite of what they say and cover it up with smoke and mirrors are in for a rude awakening.

The QE to date is like pissing money into a vast ocean of debt.

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No silly, it isn't about creating jobs, it's about monetising US debt so as to try to create the illusion that there is still a market for spiralling US debt and thereby maintain low interest rates and prevent a direct default on said debt and default on it via inflation instead. It also keeps interest rates low for consumers so they don't default as fast, thereby hopefully saving the banks that run the show from collapsing.

unfortunately QE2 has had the opposite effect to QE1 and pushed up the yields rather than pushing them down

Whilst einstein was correct in highlighting the definition of insanity was doing the same thing over and over again and expecting different results, when it comes to markets doing the same thing again and again can and quite often will lead to completely different results

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http://www.telegraph...resistance.html

So would the date the tax cuts expire be a good one to call a "black day"?

Forcing down borrowing costs so far has resulted in the creation of 0 US jobs. Clearly what's needed is to keep borrowing rates even lower so that the jobs get created by the magic job fairy.

Look at it another way.

The knobs in Washington (knowing full well) have diverted Trillions of Dollars from US Heartland into the elites financial system sucking most of the money up into a tiny percentage of hands before the whole thing collapses - which they have already planned for!

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Watch what they do, not what they say.

Anybody who hasn't cottoned on to the fact that those that run society usually do the exact opposite of what they say and cover it up with smoke and mirrors are in for a rude awakening.

The QE to date is like pissing money into a vast ocean of debt.

Helicopter Ben is a man of integrity as he has kept to his word, how much more proof do you need see.

The beauty of unbacked paper money, especially the electronic kind, it can printed to whatever is required. When things require it we will see QE shock and awe, followed by QE shock and awe extreme.

Edited by Take Me Back To London!

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If it didn't work the first two times, the third time is bound to work isn't it? :rolleyes:

Third time's the charm.

How long before Helicopter Ben decides to "Go Fourth"?

(I've been wanting him to do that for years!)

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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