FED Chairman Ben Bernanke will tell “60 Minutes” that he won’t rule out expanding the Fed’s $600 billion bond-purchase plan, CBS News said Friday.
Chairman Bernanke is trying almost desperately to preserve the financial status quo in the face of debt destruction and deleveraging. He has driven the US stock market to ridiculously over-valued levels in the hope of creating “wealth effect”. In short, he hopes to fool us into feeling rich so we’ll spend money we don’t have and go deeper into debt. The plain simple truth is that the US in its actual (economic) form cannot exist without permanently borrowing money, and there are not enough lenders left since confidence in is vanishing. Therefore the FED has to print money to replace the borrowings. This is obviously only a short term relief – the outcome is an inevitable Dollar crash. The US fed is pumping money to their European bank buddies and refer to Terryc in regards to the destruction of the US dollar. Big deal stocks are going up but look at stocks priced in real money GOLD. You can buy fewer and fewer goods with those dollars the fed is destroying. Open your eyes they are trying to inflate their way out of debt and to cover all those bad bets they made at our expense.
What is Quantitative Easing you ask? Here is a Great Video
This WILL end badly.
QE does not put a single cent ‘into the economy’. It is a vast paper shuffling exercise between government, central bank and commercial banks (who are more or less the same thing, especially in the USA). The balance sheet of an individual entity within this closed system might change, because bits of paper are shuffled back and forth at above or below market value, but the consolidated balance sheet of government + central bank + commercial banks looks more or less exactly the same before and after.