Ben Bernankeclearly doesn’t care about the decline of living standards for Americans. He clearly wants Obama re-elected by inflating the Obama Boom, regardless of the consequences. Reports are now circulating that Bernanke and the Fed will not end QE2. Instead they will embark on QE3 to keep propping up the anemic economy. The problem with Quantitative easing is that it is occurring at a time when wages have been on the decline the last 11 years. Instead of good growth, it’s created stagflation.
Federal Reserve Chairman Ben S. Bernanke may keep reinvesting maturing debt into Treasuries to maintain record stimulus even after making good on a pledge to complete $600 billion in bond purchases by the end of June.
The Fed chief’s top two lieutenants said this month the economy and inflation are too weak to warrant the start of a monetary-policy reversal. Investors and economists including David Kelly at JPMorgan Funds see that as a signal the Fed will keep its balance sheet at current levels by replacing about $17 billion a month in maturing mortgage debt with Treasuries.
Ending the reinvestment policy and the $600 billion program at the same time would be like quitting stimulus “cold turkey,” said Kelly, who is based in New York and helps oversee $400 billion as chief market strategist at JPMorgan. “It does make sense to reinvest for a while,” he said. “Then they could watch how bond yields react to that.”
A 3rd world style printing money policy to go along with a 3rd World Liberation President. Priceless!
Tags: Ben Bernanke, Federal Reserve, QE2, QE3, Stagflation
