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

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  1. #1

    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
    4) The Fed is committed to returning the US to economic growth, which means we all benefit.
    Yay!
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  4. #3
    I somehow have less faith in the Fed than others and do not choose to believe they will "save " me.

  5. #4
    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
    *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.
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  7. #6
    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

    "It is difficult to free fools from the chains they revere." - Voltaire

  8. #7
    Who determines the value of all these assets purchased?

    Where's THE FED getting these Trillions?
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  9. #8
    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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  11. #9
    Pfizer Macht Frei!

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  12. #10
    It wouldn't surprise me if the OP is one of the people who bought Facebook at $42.
    Rand Paul 2016

  13. #11
    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. #12
    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. #13
    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.

  16. #14
    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?

  17. #15
    I'm praying for a Jesus 2.0 to come down and toss these mother-$#@!ing-money-changers out.... AGAIN!

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

  18. #16
    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-$#@!ing-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



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  20. #17
    Weird that this is just coming out now, I called it here five days ago:
    http://www.ronpaulforums.com/showthr...85#post4764985



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