Keep an eye on Real GDP, <IMG SRC=http://research.stlouisfed.org/fred2/graph/fredgraph.png?&id=GDPC1&scale=Left&range=Max&cosd=1947-01-01&coed=2011-01-01&line_color=%230000ff&link_values=false&line_style=Solid&mark_type=NONE&mw=4&lw=1&ost=-99999&oet=99999&mma=0&fml=a&fq=Quarterly&fam=avg&fgst=lin&transformation=pc1&vintage_date=2011-07-12&revision_date=2011-07-12> Sub 2% means recession. Although the Bernank probably fears running QE3 will not stop a coming recession, he'll probably just say, "fuk it, let's see what happens."
If true to form, we will hear the impending start of QE3 at least a half dozen times before the official announcement. Expect "rumors" of it, like clockwork on any severe intra-day declines, so as to squeeze into the close. Any other "draconian" measures will also be rumored on those quiet mid-day declines as well. Centrally planned markets/economies at their finest.
Yep they always have a planned rumor. Rate cut rumor,Osama Bin Lauden has been captured. Sadam Hussain has beeen captured, Bailout rumors (greece), Now QE3! Latest, how about Debt Celling agreement has been reached, save this for a selloff in the near term.
Everyone can see these Central Bank injections do not work, they do-not help the citizens of this nation. They only help investment banks, as they siphon off all the capital and use it for bonus pools.
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it's not being stored away it's being destroyed.When loan are paid off the money that pays the principle doesn't exist anymore. âMoney is created when loans are issued and debts incurred, money is extinguished when loans are repaidâ. John B Henderson, Senior Specialist in Price Economics, Congressional Research Service, The Library of Congress stated: "If all the bank loans were paid, no one could have a bank deposit, and there would not be a dollar of coin or currency in circulation. This is a staggering thought. We are completely dependent on the commercial banks. Someone has to borrow every dollar we have in circulation, cash, or credit. If the banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless situation is almost incredible -- but there it is." Robert Hemphill. Credit Manager, Federal Reserve Bank of Atlanta In the foreword to a book by Irving Fisher, entitled 100% Money (1935) âThat is what our money system is. If there were no debts in our money system, there wouldnât be any money.â Marriner S. Eccles, Chairman and Governor of the Federal Reserve Board more $ in loans are being repaid then $ created = decrease in money supply
Untrue. What about equity that puts money into the economy. Also if people did not lend money they would have money to spend themselves. When people put money into the bank the people who borrow it need it so they will spend it faster than the lenders. This increases the speed of the transactions in the economy leading to prosperity. All the banking system does is provide a way for people to get installments of cash in the future in exchange for a current investment payment that is either spent on the means of production or consumption. There are other means of doing that. The big problem is that the money lent to people has been spent on consumption not investment and the people no longer have the money to repay it as it was not used to generate more wealth. The banking system WILL crash when the borrowers fail to make the repayments.