QE 2.1 Kicks Off With a Mere $2.55 Billion
Pffft, pathetic. I like my central bankers to swing their large monetary cojones like nunchucks, not butter knives. I'm unimpressed.
The Federal Reserve bought $2.55 billion of Treasuries on Tuesday in the first operation of a program to take up government debt using cash from maturing mortgage bonds it holds.
The central bank announced the Treasury purchase program last week, saying it was intended to keep its holdings of domestic securities steady. When announcing the program at the end of its August policy meeting, the Fed significantly downgraded its economic outlook.
The Fed on Tuesday bought Treasuries maturing between August 2014 and February 2016. Dealers submitted $20.95 billion of Treasuries for consideration in the purchase.
OK before this goes any further, why don't we forget the pleasantries and be real about what's going on here. I want Bernanke to stand up and say "You know what? We're fucked. So as a result, we've decided to back up the money truck to the White House in the hopes that we can at least pay the bills for a few more months before the rest of the world catches on and replaces the dollar as world reserve currency. Might as well get the last few miles out of her before we run her into the ground, right?!"
I'd pay to see that. In yuan.