FED initiates new 600B round of quantitative easing

So if we get this deflation will gold really be such a great asset?

So if we get this deflation will gold really be such a great asset?

30ashopper, Buz or some of you other financial wizards correct me if I am wrong but my understanding is that the printing of money to buy back our debt will create inflation, not deflation. It seems a foolish plan to me and all it will do is devaluate what little I have managed to save over the years. Another area that needs to be addressed. A FED with absolutely no oversight by anyone.

30ashopper, Buz or some of you other financial wizards correct me if I am wrong but my understanding is that the printing of money to buy back our debt will create inflation, not deflation. It seems a foolish plan to me and all it will do is devaluate what little I have managed to save over the years. Another area that needs to be addressed. A FED with absolutely no oversight by anyone.

Yes it will in theory, and that's exactly what the FED wants. They feel the current inflation rate is too low. By raising the inflation rate, they push cash sitting on the side lines out into riskier investments like stocks, real estate, etc..

30ashopper, Buz or some of you other financial wizards correct me if I am wrong but my understanding is that the printing of money to buy back our debt will create inflation, not deflation. It seems a foolish plan to me and all it will do is devaluate what little I have managed to save over the years. Another area that needs to be addressed. A FED with absolutely no oversight by anyone.

The federal reserve is a series of independent banks that are not part of the government. I don't know why a staunch Republican would expect any kind of oversight.

The federal reserve is a series of independent banks that are not part of the government. I don't know why a staunch Republican would expect any kind of oversight.

I am well aware of what the FED is. There commission, board or whatever you want call it, with Bernake as head, makes decisions, and has for years, that affect every citizen. Whether Republican or Democrat it does so without oversight, which in my opinion, is needed.

I am well aware of what the FED is. There commission, board or whatever you want call it, with Bernake as head, makes decisions, and has for years, that affect every citizen. Whether Republican or Democrat it does so without oversight, which in my opinion, is needed.

So you think government oversight of private organizations is necessary? Looks like your inner socialist is coming out.

I am well aware of what the FED is. There commission, board or whatever you want call it, with Bernake as head, makes decisions, and has for years, that affect every citizen. Whether Republican or Democrat it does so without oversight, which in my opinion, is needed.

Look on the bright side, the FED isn't perfect, not by a long shot. A lot of our problems today can be traced back in part to past FED action. But I shudder to think what kind of damage the central bank could do if it were controlled by the politicians in Washington.

I think Bernanke is doing the right thing. With the politican head winds shifted, confidence in the economy has a chance to take root. Assuming the FED is successful a slight increase in inflation will help too. (Although they've had lackluster succcess thus far, so I wouldn't get my hopes up just yet.)

Look on the bright side, the FED isn't perfect, not by a long shot. A lot of our problems today can be traced back in part to past FED action. But I shudder to think what kind of damage the central bank could do if it were controlled by the politicians in Washington.

I think Bernanke is doing the right thing. With the politican head winds shifted, confidence in the economy has a chance to take root. Assuming the FED is successful a slight increase in inflation will help too. (Although they've had lackluster succcess thus far, so I wouldn't get my hopes up just yet.)

I'll acquiesce to your superior financial acumen and knowledge. LS, who doesn't seem to understand you can be for oversight without being socialist, not so much.

Pretty thorough explanation

At least Wall St (Goldman Sachs) earns a commission on the Feds bond purchase...That's covered at 3:45 in the video.

We couldn't have the Fed buy the bonds directly from the Treasury.

YouTube - Quantitative Easing Explained

Pretty thorough explanation

At least Wall St (Goldman Sachs) earns a commission on the Feds bond purchase...That's covered at 3:45 in the video.

We couldn't have the Fed buy the bonds directly from the Treasury.

Love that, I haven't been able to track down who made it though, any ideas?

The FEDS are already overseen and manipulated by Bankers, the Financial Elite and Politicians. It's the biggest fraud perpetuated against the American People. It should be disbanded. Thomas Jefferson warned about the unrestricted powers and it's detriment to our Government:

"[The] Bank of the United States... is one of the most deadly hostility existing, against the principles and form of our Constitution... An institution like this, penetrating by its branches every part of the Union, acting by command and in phalanx, may, in a critical moment, upset the government. I deem no government safe which is under the vassalage of any self-constituted authorities, or any other authority than that of the nation, or its regular functionaries. What an obstruction could not this bank of the United States, with all its branch banks, be in time of war! It might dictate to us the peace we should accept, or withdraw its aids. Ought we then to give further growth to an institution so powerful, so hostile?" --Thomas Jefferson to Albert Gallatin, 1803

Here's what I have learned over the years regarding what the FED has to say...do the opposite. For example, if the FEDS say there is no housing bubble, sell your home pronto and rent.

30A- would you take your assets and put them back into the markets right now? This move by the FED is a BAD, BAD, BAD one. I disagree. We had 60-70 years of financial prosperity in this Country after the Second Bank of the United States was disbanded back in the early 1800's.

BTW- Riverotter mad the video. It is in the Lounge, where it belongs. :lol:

The FEDS are already overseen and manipulated by Bankers, the Financial Elite and Politicians. It's the biggest fraud perpetuated against the American People. It should be disbanded. Thomas Jefferson warned about the unrestricted powers and it's detriment to our Government:

Here's what I have learned over the years regarding what the FED has to say...do the opposite. For example, if the FEDS say there is no housing bubble, sell your home pronto and rent.

30A- would you take your assets and put them back into the markets right now? This move by the FED is a BAD, BAD, BAD one. I disagree. We had 60-70 years of financial prosperity in this Country after the Second Bank of the United States was disbanded back in the early 1800's.

BTW- Riverotter mad the video. It is in the Lounge, where it belongs. :lol:

I'm no fan of the FED, but from an investment point of view, I'd rather have inflation vs. deflation. Even with stagnant growth. I find the effects of deflation much harder to predict. Don't you?

Also, we had a really bad Treasury Auction recently. I am suspicious when events like that happen and then we announce we are buying. Yields are low and I don't think forcing inflation (heating up the printing presses) is the right thing to do.

Love that, I haven't been able to track down who made it though, any ideas?

Xtranormal | Text-to-Movie



If you can type, you can make movies. :wave:

Another good one: