Bernanke is spewing out more Treasuries in exchange for Wall Street toxic waste. Not much is being mentioned about this, but this man is singlehandedly trying to collapse the dollar and eliminate all debts through monetary inflation. The morons at the Hill are complicit, thinking giving out money to people will make everything better. Why not just give everyone $1 million and make everyone a millionaire so they can buy as many Apple gadgets, foreclosed houses, and flat panel TVs that they want. It will make everyone feel better except for those cuckoos who actually thinking saving by buying Treasuries and money market funds is the safest thing to do. Commodities keep looking better and better.
Looks good, right? "Inflate away the debt... stick it up somebody else's ass so we don't have to pay for it".... Problem... It's the American public who will ultimately pay for all of this in reduced standard of living, accelerating inflation, and collapsing buying power of $USD. He ain't doing us any favors...
american public is already doing everything you forecast,he's trying to reverse it,not saying it will work,but what if he didn't try to put up sandbags against this flood of bad debt,things would be a lot worse,we went thru this in the late 80's and prospered,hopefully history will repeat itself
The problem is that is going to happen anyway. Inflation : everyone's paycheck is a lot smaller No inflation/deflation : recession/depression and lots of people will not have a job. End result is the same. A shrinking average paycheck in real money term. The difference is in no inflationi/deflation, debt size don't decrease and your interest rate will still be reasonable.
Don't think they haven't considered such. Problem is... if they gave everyone $1Million and everybody could "settle up painlessly", there would be FLOODS of money in the system and the value of the $USD would plummet. 1. ALL lenders from this time would be SCREWED... they would be repaid in what amounts to Monopoly Money. 2. Knowing how "every lender got screwed last lending cycle", potential lenders in the new cycle would want 25-30%... maybe 50% interest to give themselves a cushion against a dishonest US Gummint... Not many houses would get sold with a 25% interest mortgage... I hope everyone appreciates the history they are witness to... the GREATEST FINANCIAL FRAUD IN THE HISTORY OF CIVILIZED SOCIETY!!! All propagated by the US Gummint.
Oops... sorry. I shouldn't be posting this kind of stuff. I've been told my rants against the dishonest nature of the Gummint have become "annoying" to some..
The fed causes all these bubbles, not the American public. The fed and easy "fractional reserve" credit creates all the excess cash. Everyone prospers, and would be stupid to not buy up stock, and bid real estate up into the stratosphere.... but it starts with the fed .... it is a cycle ... it is the government policy. Hopefully history *will* repeat itself and this will all play out.
One reason why the market rally is because of lower rates. People and HFs are putting free money to work in the market to compensate for high inflation. This Ben and the whole Federal Reserve system should go away. This can't be good 20yrs down the road. The good days are behind us and there is nothing we can do about it. Very sad for all of us.
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