LAROUCHEPAC: Economic Collapse
November 4, 2010 • 8:08AMOne day after the Nov. 2 mid-term elections in the United States, the U.S. Federal Reserve, as expected, announced that it is launching a policy of "quantitative easing" — read, Weimar-style hyperinflation. The Fed Open Market Committee said today that it would buy $600 billion more in Treasury bonds. The Fed said it would buy the long-term government bonds through June of 2011. This purchase will add to an expected $250 billion to $300 billion in Fed purchases over the same period from reinvesting proceeds from its mortgage portfolio. Thus, including these Treasury purchases from reinvesting proceeds of mortgage payments, the Fed will buy a total of $850 billion to $900 billion of securities through June, or about $110 billion per month.
Assets will have an average duration of five to six years, and the central bank temporarily relaxed a 35-percent per-issue limit on its securities holdings to provide operational flexibility and buy the most attractive securities on a relative-value basis, the New York Fed said.
The Federal Open Market Committee (FOMC) kept its benchmark interest rate at zero to 0.25 percent, where it has been since December 2008.
Voting for the FOMC hyperinflationary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Sandra Pianalto; Sarah Bloom Raskin; Eric S. Rosengren; Daniel K. Tarullo; Kevin M. Warsh; and Janet L. Yellen.
Voting against the policy was Thomas M. Hoenig. He believed the risks of additional securities purchases outweighed the benefits. He was also concerned that this continued high level of monetary accommodation will increase the risks of future financial imbalances and, over time, will cause an increase in long-term inflation expectations that could destabilize the economy.
Bernanke pressed forward with the move, even after five of 18 Fed policy makers went public with objections or doubts. The one of the five who has a vote this year, Kansas City Fed President Thomas Hoenig, today cast his seventh straight dissent, the most at consecutive regular policy sessions since 1955.
On Thursday, both the Bank of England and the European Central Bank (ECB) are also scheduled to announce monetary policy.
The insanity of today's FOMC announcement underscores the need to remove Obama from the U.S. Presidency, immediately reinstate Glass Steagall, and generate credit to maintain the state governments of the United States and fund NAWAPA.
Assets will have an average duration of five to six years, and the central bank temporarily relaxed a 35-percent per-issue limit on its securities holdings to provide operational flexibility and buy the most attractive securities on a relative-value basis, the New York Fed said.
The Federal Open Market Committee (FOMC) kept its benchmark interest rate at zero to 0.25 percent, where it has been since December 2008.
Voting for the FOMC hyperinflationary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Sandra Pianalto; Sarah Bloom Raskin; Eric S. Rosengren; Daniel K. Tarullo; Kevin M. Warsh; and Janet L. Yellen.
Voting against the policy was Thomas M. Hoenig. He believed the risks of additional securities purchases outweighed the benefits. He was also concerned that this continued high level of monetary accommodation will increase the risks of future financial imbalances and, over time, will cause an increase in long-term inflation expectations that could destabilize the economy.
Bernanke pressed forward with the move, even after five of 18 Fed policy makers went public with objections or doubts. The one of the five who has a vote this year, Kansas City Fed President Thomas Hoenig, today cast his seventh straight dissent, the most at consecutive regular policy sessions since 1955.
On Thursday, both the Bank of England and the European Central Bank (ECB) are also scheduled to announce monetary policy.
The insanity of today's FOMC announcement underscores the need to remove Obama from the U.S. Presidency, immediately reinstate Glass Steagall, and generate credit to maintain the state governments of the United States and fund NAWAPA.
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