Of course Bubble ben bernanke is going to discuss and EXTEND the bond buying, this will be nothing new when this news comes out. This is just getting more pathetic by the second! UPDATE 1-Fed's Hoenig says QE3 "may get discussed" -MNSI WASHINGTON | Tue Feb 1, 2011 3:37pm EST WASHINGTON Feb 1 (Reuters) - The Federal Reserve could debate extending its bond-buying program beyond June if U.S. economic data proves weaker than expected, Kansas City Fed President Thomas Hoenig said. Another round of bond buying "may get discussed" if the numbers look "disappointing," Hoenig told Market News International in an interview published on Tuesday. Hoenig, an inflation hawk who vocally opposed the Fed's commitment to purchase an additional $600 billion in government bonds, reiterated his call for the central bank to reverse course, according to Market News. He called for the U.S. central bank to "normalize" policy by shrinking its balance sheet and raising interest rates. Hoenig has argued the Fed should raise rates to 1 percent and potentially higher depending on the economy's performance. The Fed has kept interest rates near zero percent since December 2008.
Barring a huge downside surprise in Friday's employment report, QE3 isn't going to happen. Gold (down) and copper (up and at a record) are telling you this in no uncertain terms.
Someone has to buy the extra $500 Billion per year in gov't debt that was agreed to in December. If not the Fed, then who?
We are 3 months into QE2. This means that we should have QE3 in the next 3 months. We are also on track to hit the debt ceiling by the end of march, so as soon as that debt ceiling gets raised, we are right on track to get some more of that QE we love so much.
You'll be long dead before there stop being willing buyers of USG debt. As I've posted before, the net worth, that's assets minus every single liability against it, of the US economy is 50 trillion at last count. 500 bil doesn't even register on the total US balance sheet.
What happens if USA defaults on Debt? Whose loss? What would happen? Just curious, Dooms day scenario... Who do we owe the debt too? Are they the real enemy?
Once oil is priced in something besides US dollars , which it will be, then the price of oil will be unaffordable by almost all americans. We're talking over 5-7 bucks a gallon for gas. Mark my words. Oil will NOT be priced in USD's for much longer and that will be the catalysts for shit to hit the fan as they say. Some countries are already accepting gold as payment for oil.
QE3 appears to be a done deal. QE2 was $600billion and ends this summer. Q3 should be half and probably go til Oct. Home prices are still sliding, loans are weak: <IMG SRC=http://research.stlouisfed.org/fred2/graph/fredgraph.png?bgcolor=%23B3CDE7&chart_type=line&drp=0&fo=ve&graph_bgcolor=%23FFFFFF&height=378&mode=fred&preserve_ratio=checked&recession_bars=On&txtcolor=%23000000&ts=8&width=630&id=TOTLL&scale=Left&range=Custom&cosd=2001-01-03&coed=2011-01-12&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=Weekly%2C+Ending+Wednesday&fam=avg&fgst=lin&transformation=pc1&vintage_date=2011-01-26&revision_date=2011-01-26> The GDP was horrible considering the deflator was reported at the unbelievable rate of 0.3% rather than the expected 1.5%. If the deflator had been 1.5%, real GDP would've been 2% instead of the 3.2% as reported, both still below what the market had expected, 3.7%. Consumer spending for Q4 was 4.4% which was a 3 year high. Prices for commodities climbed all through last Q too. Ya, how the heck did the deflator miss. I think the Bernank knows the economy is still weak and the only thing he has left to do is appease Captain Broccoli. Buy the dips!!
It depends on if the net worth is mark to market or mark to estimated value. Once assets go on sale, they tend to lose mark to market value rather quickly.
Covertibility I agree. There is nothing on the radar that would show a recovery that is sustainable. Manufacturing numbers are up, above 60. but that raw material cost are above the 80 mark. No one speaks of the fact that this will eat into earning for next quarter and possible layoffs to adjust for rising material and energy cost. Second, the US Goverment (Or the band of idiots as I like to call them) do not include food or energy in their CPI number. So they can tell the "Sheep" that inflation is under control. According to my calculations, inflation is up near 10%-13% currently. Second, M3 is no longer tracked, as of March, 2006. Looks like "The Idiots" saw this coming. Unemployment isn't getting any better, only worse in real numbers and if we miss the numbers friday, the "Weather" will be the key reason. Of course, Jan. tends to be a bad numer but they will miss by near 70k to 100k IMHO and blame he weather. All in all the country is not recovering across the board, as the "Main Stream" press is pushing. The stock market is breaking higher, but on light volume, sucking or trying to suck in the "mainstreet" sleeper.