What's a Couple Trillion Among Friends When it Comes to Fed Funny Money?
It’s starting to look like the Fed’s going to need a skyscraper-full of new printing presses …
In a statement released yesterday, the Federal Reserve said,
“To provide support to mortgage lending and housing markets, and to improve overall conditions in private credit markets, the Federal Reserve will purchase a total of $1.25 trillion of agency mortgage-backed securities and up to $200 billion of agency debt.”
That’s a total of $1.45 trillion! Where’s the Fed going to get the money? Simple: They’ll have to PRINT it — create it out of thin air!
Plus, even former Fed Chairman Alan Greenspan is beginning to panic about the dollar’s decline, warning that total U.S. private and public debt — now at 84% of GDP and still soaring — is “very dangerous” and threatens both long-term Treasuries and the dollar.
Thank you, Mr. Greenspan!
I couldn’t have said it better myself!
This is precisely what I’ve been warning you about: Bernanke’s secret war on the dollar. One of the greatest explosions in the supply of unbacked paper dollars in history.
The really bad news? Bernanke’s inflationary chickens are just BEGINNING to hatch. History shows us that it takes months — sometimes years — for the full impact of an explosion in the money supply to be felt.
That means you can look forward to many more months of a collapsing dollar … and many more months of evaporating buying power.
Economic Policy Journal also covered this little announcement.
The Fed has purchased $857 billion of their scheduled $1.25 trillion in mortgage-backed securities, according to Morgan Stanley. It's also bought $129.2 billion of the planned $200 billion in so-called agency debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks, which finance mortgage purchases.
Bernanke's secret war on the dollar? What's secret about it? The dude is out of his damn mind and still believes in the bullshit he learned in academia that works well on paper but fails miserably in practical application. I hate to break it to Dr Bernanke but this is no thesis, it's our God damn livelihood he's playing with and until he gets that, we're just as doomed as ever.
So is Richmond Fed's fearless leader the only one with the balls large enough to say enough is enough or would any of the rest of the Fed's cast of characters care to weigh in and cut off the financial crack pipe?
Anyone? Fisher? Plosser? Someone? Please?! Lord knows that psychotic funny money-loving nutjob Yellen isn't going to promote financial responsibility. What's her incentive to do so? She's too busy riding bitch in Bernanke's inflationcopter to care.
I think I've just about lost my faith in the Fed at this point. Once upon a time I believed one reasonable head at the FOMC table was enough to save us but the longer I watch, the less I can believe that one voice will be able to rise above the insanity to bring reason to the monetary madness.
Sorry, Jeffrey Lacker. I still love you but damnit, you just can't do it alone and your people are out of their damn minds. I mean your friends over at Dallas get it but that isn't enough either.
We really are doomed.
I'll be curled up in the corner bawling like a little bitch if anyone needs me.