Posted by Tina
Ben Bernanke just announced the Federal Reserve Bank will spend billions and billions and billions…to 2015 if necessary…because the economy is too weak to fix high unemployment.
WASHINGTON — The Federal Reserve says it will spend $40 billion a month to purchase mortgaged-back securities because the economy is too weak to reduce high unemployment. The Fed says it will keep buying the securities until the job market shows substantial improvement.
The Fed also extended a plan to keep short-term interest rates at record-low levels through mid-2015. Both steps were announced after the Fed’s two-day policy meeting.
The bond purchases are intended to lower long-term interest rates to spur borrowing and spending. The Fed has previously bought $2 trillion in Treasury bonds and mortgage-backed securities since the 2008 financial crisis.Skeptics caution that further bond buying might provide little benefit. Rates are already near record lows. Critics also warn that more bond purchases raise the risk of higher inflation later.
WHY IS THE ECONOMY WEAK?
Because the Keynesians are wrong…and because the leader of our nation decided to transform our nation rather than leading it.
I do wish you could take those partisan blinders off … for just 22 seconds.
Yes, we are screwed. Our Fed is buying up vast quantities of bad debt (promulgated by the very financial institutions from which we are buying the debt) in the hopes that these same institutions will loose the monies they have been hoarding against the realization of the non-payment of the the bad debt promulgated by themselves … and thereby stimulate the economy.
Only … who will be making good to assorted “investors” for this bad debt? Why, we … the taxpayers … will.
To my mind … better the promulgating financial institutions whither and die under the load of their bad debt … and us taxpayers fund enterprises, directly, of direct benefit to us.
That would be socialism. Yes … it would.
And here comes the downgrade. Again!
Obumble built THAT!
“…..in the hopes that these same institutions will loose the monies…”
HOPE? Hope is the lowest of the lows in terms of intention.
The hope is that the Bummer man can be dragged across the finish line before the economy totally crashes.
“…and us taxpayers fund enterprises, directly, of direct benefit to us. That would be socialism. Yes … it would.”
Tell me Libby…where would those fictional taxpayers get jobs and paychecks to pay the massive taxes (and would they have enough left over to take care of their families)? Cause I see taxes at at least 70% on everyone (And since wealth can’t be accumulated where would the urge to work originate?) How do you see these taxpayer enterprises generating wealth?
Do you also imagine indenturing the rich and seizing all of their wealth to the common good? How long do you imagine that money would last?
You have never been able to explain how socialism would work…because you can’t! Utopia does not exist.
In fact you are witnessing the result of socialist policy!
Massive unsustainable entitlement programs, intervention (BAD regulation) in lending practices, a feel good sense of dependency built in to the people over generations, printing money, restricting development of resources (More BAD regulation), and complex regulation, looming higher taxes, fees and regulation (Obamacare)…all create massive unemployment and or inflation.
http://www.huffingtonpost.com/2012/09/10/unemployment-rates-highest-amongst-black-and-latinos_n_1871453.html
Eventually we will all share poverty and misery equally as the economy collapses.
Small business (those responsible for 79-80% of jobs) is really taking it in the shorts under the socialist in the WH while he covetously attempts to strangle those with the financial capacity to jump start the entire economy.
We told you a mess like this would happen before the last election if Obama was elected. It has. But you are like those women that catch the Mr. in a compromising situation and pretend they haven’t witnessed a thing…it’s just willful ignorance & denial.
J, you are right Obumble did built that.
http://hotair.com/archives/2012/09/14/breaking-foreign-policy-president-is-also-president-downgrade/
Great article and video here:
http://townhall.com/tipsheet/guybenson/2012/08/05/one_year_ago_president_downgrades_credit_slash