Friday, November 5, 2010

Ouch! Fed to Spend $600 Billion More to 'Boost' Economy

More like goose the economy, and rectal probes are never any fun.
"The Federal Reserve launched a controversial new policy on Wednesday, committing to buy $600 billion more in government bonds by the middle of next year in an attempt to breathe new life into a struggling U.S. economy.

The decision, which takes the Fed into largely uncharted waters, is aimed at further lowering borrowing costs for consumers and businesses still suffering in the aftermath of the worst recession since the Great Depression."
Oh, dear lord.

Just as two side questions as we observe this train wreck in the offing: How can you lower borrowing costs when interest rates are virtually zero now? Moreover, why would you want to when the country is drowning in debt already?

Not for nothing did I recently name Ben Bernanke one of the six most dangerous Federal employees in the country (along with Obama, Reid, HHS Sec. Sebelius, EPA head Lisa Jackson, and any swing vote on the Supreme Court).

For anyone interested in Helicopter Ben's rationalization, you can read that here.

Central bankers around the world, less foolish than the ones in the U.S. lately, are not pleased.
Thailand said its central bank is already in talks with neighbours to devise a joint protection policy.

Brazil's central bank chief Henrique Mereilles said the US move had created "excessive dollar liquidity which we are absorbing," forcing his country to restrict inflows. Mexico's finance minister warned of "more bubbles."
I can't say I'm surprised, though. There were only three ways the Feds could get out of their fiscal mess: raise taxes, borrow even more, inflate. The first has been politically not viable since day one and two is about exhausted. Inflation is the most underhanded, the least visibly painful since it's gradual and most people can't connect the dots back to the Feds.

As I said recently, while I'm mostly pleased about the election results, so long as the HHS, the Federal Reserve, and the like continue to exist, the Federal government will continue to do great harm, no matter who is in the majority. (Obama, for example, has recently hinted that he will use the EPA to accomplish what he couldn't get done by now-stalled Cap-and-Tax legislation.)

Clearly, Nov. 2, 2010 was just the first small step in overthrowing the tyrants doing their best to destroy American prosperity.

2 comments:

Swink said...

No comments?.....NO COMMENTS?!!! I haven't heard a PEEP about this on the news, either. What's up with that?

Jeff Perren said...

Sorry, Swink, you lost me there.

Are you asking why no one has commented on my post? That's pretty normal. I've published many equally horrific things and they usually pass unremarked.

As to not a peep on the news, we must be reading different publications. I've seen a dozen or more stories on it: in RCP, the Telegraph UK, and many more.

Bernanke (as you can see by one of the links) even wrote an editorial defending his actions, which means he's getting heat for it.

Unfortunately, in America right now, Keynesian policy is dominant so it's not considered all that controversial. That's what's up with that.