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

  1. #1

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

    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...y-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.
    Last edited by Jordan; 12-12-2012 at 12:11 PM.



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  3. #2
    Member bxm042's Avatar
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    4) The Fed is committed to returning the US to economic growth, which means we all benefit.
    Yay!
    It's all about taking action and not being lazy. So you do the work, whether it's fitness or whatever. It's about getting up, motivating yourself and just doing it.
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    I somehow have less faith in the Fed than others and do not choose to believe they will "save " me.

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

  6. #5

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    *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.
    My personality type: INTJ - please forgive my weaknesses (Not naturally in tune with others feelings; may be insensitive at times, tend to respond to conflict with logic and reason, tend to believe I'm always right, tend to be unwilling or unable to accept blame )

  7. #6

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    Who determines the value of all these assets purchased?

    Where's THE FED getting these Trillions?
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  8. #7

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    Quote Originally Posted by hazek View Post
    *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?
    "And now that the legislators and do-gooders have so futilely inflicted so many systems upon society, may they finally end where they should have begun: May they reject all systems, and try liberty; for liberty is an acknowledgment of faith in God and His works." - Bastiat

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  9. #8

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    Quiz: Test Your "Income" Tax IQ!

    Short Income Tax Video

    The Income Tax Is An Excise, And Excise Taxes Are Privilege Taxes

    The Federalist Papers, No. 15:

    Except as to the rule of apportionment, the United States have an indefinite discretion to make requisitions for men and money; but they have no authority to raise either by regulations extending to the individual citizens of America.

  10. #9

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    It wouldn't surprise me if the OP is one of the people who bought Facebook at $42.
    My 2016 prediction: Hillary Clinton will NOT run for president.

    Rand Paul 2016

  11. #10

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    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!

  12. #11

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

    Money changers neutralized.

    Quote Originally Posted by ctiger2 View Post
    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!
    "Like an army falling, one by one by one" - Linkin Park

  13. #12

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    Quote Originally Posted by ronpaulfollower999 View Post
    It wouldn't surprise me if the OP is one of the people who bought Facebook at $42.
    LOL. Yeah right.

  14. #13

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    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?

  15. #14

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    Weird that this is just coming out now, I called it here five days ago:
    http://www.ronpaulforums.com/showthr...85#post4764985

  16. #15

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    Quote Originally Posted by jclay2 View Post
    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.

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    Quote Originally Posted by HOLLYWOOD View Post
    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".
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  18. #17

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    Quote Originally Posted by Jordan View Post
    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?

  19. #18

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    Quote Originally Posted by jclay2 View Post
    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.

  20. #19

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    Quote Originally Posted by Jordan View Post
    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.

  21. #20

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    Quote Originally Posted by jclay2 View Post
    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.

  22. #21

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    Quote Originally Posted by Jordan View Post
    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.
    As far as our GDP targeting with monetary policy that is a joke. Our trade deficit is off the charts screwed up and neither the federal government nor the FED give a hoot in hell. Both of them are personally assisting in the dismantling of all our manufacturing and moving them to China. They are hiding the true unemployment numbers and handing out EDB cards to over 50 million people.

    How do you borrow $2 trillion from China then play hardball to have an even trade deficit? They have you by the balls. They simply call in the debt and crash your stock market and economy if you bother them. You have no power over them at all and they control you. Debt to communist generals is dangerous as hell but we wanted our UNFUNDED social programs and cheeseball wars...... to save the FED's dollar. The FED was only too happy to middleman that deal.

    Our government has been reduced to a money junkie in debt over $16 trillion to the central bankers. They are worthless to make decisions on our behalf regarding the bankers, monetary policy or GDP etc. The FED bankers simply threaten to cut off the $1.5 trillion a year deficit spending money and the politicians will grovel at their feet and LITERALLY do anything asked. It is an alliance from hell.

    DEBT DEBT DEBT = FED You have to wonder how all this power is derived from a worthless fiat currency only supported by the sheeple believing it has value. Yep, some more unbacked currency created with debt attached ought to straighten out this mess!
    Last edited by adams101; 12-12-2012 at 11:31 PM.

  23. #22
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    Quote Originally Posted by Jordan View Post
    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.
    The Fed funds the wars abroad, the war on us at home, massive government, massive corruption and corporatism, massive theft... kind of hard to be "in the Ron Paul camp" and support the Fed... though I'm sure you've found a way... and we're happy to have you...
    It's all about taking action and not being lazy. So you do the work, whether it's fitness or whatever. It's about getting up, motivating yourself and just doing it.
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    Quote Originally Posted by Jordan View Post
    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 will say it here, and anywhere else.






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