I know with Bennie and the Ink Jets meeting again this week in their ongoing efforts to enrich their masters at your expense, you might want an update on how that QE to Infinity is working out for you. Bennie announced his “new plan” of buying $85 billion of toxic debt per month from the Wall Street banks and U.S. Treasury for infinity on September 13, 2012. His statement was as follows:
“To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee agreed today to increase policy accommodation by purchasing additional agency mortgage-backed securities at a pace of $40 billion per month. These actions should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative.”
His stated purpose was to decrease long-term interest rates and help the economy recover. As you may have heard this morning, GDP for the 4th quarter, after Bennie intiated his brilliant new plan, went negative for the first time since 2009. In addition, I point you to the little chart below. In July of 2012, the 10 Year Treasury rate hit 1.40%. On the day of Bennie’s QE to Infinity announcement it clocked in at 1.6%. This morning the 10 Year Treasury hit 2.02%. Bennie has truly worked his magic again. Interest rates have been driven higher and the economy has plunged back into recession. I think this should put him in the running for Time’s Man of the Year again.
John Hussman gave his assessment of Bernanke’s QE to Infinity shortly after the announcement:
“Quantitative easing promises to have little effect except to provoke commodity hoarding and an expansion in stock valuations to levels that have rarely been sustained for long. The Fed is not helping the economy – it is encouraging a bubble in risky assets, and an increasingly unstable one at that.”
On September 5 before the Wall Street insiders were told about Bernanke’s plans, the S&P 500 was at 1403. It has skyrocketed to 1507 since Bernanke’s promise to enrich his masters at any cost. That is a 7.4% ramp up, when the economy was going into the dumper and interest rates were soaring by 50 basis points. I guess it must be tied to the improving jobs situation.
Well spin me around and call me Sally. It seems there were 25,000 less people employed in December than there were employed in October. But, at least 432,000 more Americans left the workforce between October and December. That is surely a good sign. They must have all gotten rich on the 7.4% stock market gains. That Bennie sure knows what he’s doing. Remember his advice about housing in 2005? After he retires from the Fed, he has a huge opportunity as a Tarot card reader.
You may have heard of Egan Jones. They weren’t one of the rating agencies that wilfully helped the criminal Wall Street banks commit that biggest financial fraud in history – that was S&P and Moodys. After Bennie’s QE to Infinity announcement, they had the gall to cut their credit rating on the United States of America. You don’t do that to the biggest empire on earth. Last week the Federal government turned the screws on this truth telling credit rating firm by threatening them into accepting a penalty of not being able to rate the United States because they filled out one of their 5,000 Federally required forms improperly. You don’t mess with the oligarchs. Here was Egan Jones evaluation of Bernanke’s QE to Infinity in mid September:
“The FED’s QE3 will stoke the stock market and commodity prices, but in our opinion will hurt the US economy and, by extension, credit quality. Issuing additional currency and depressing interest rates via the purchasing of mortgage-backed securities does little to raise the real GDP of the US, but does reduce the value of the dollar (because of the increase in money supply), and in turn increase the cost of commodities (see the recent rise in the prices of energy, gold, and other commodities). The increased cost of commodities will pressure profitability of businesses, and increase the costs of consumers thereby reducing consumer purchasing power. Hence, in our opinion QE3 will be detrimental to credit quality for the US.”
The price of oil has risen from $90 to $98 since Bernanke implemented his grand scheme on September 13. In the last month, corn and soybeans are up 5% and cotton is up 9%. Since September, meat prices are up 10%. But don’t concern yourself. Bernanke says inflation is well contained because your wages aren’t going up.
If you are even partially awake, you must realize that Bernanke has no interest in helping the average person with his ZIRP policy and his QE to Infinity policy. He is destroying the savers and the prudent in order to enrich the bankers and the debtors. He knows the averge person will believe what they are told by the corporate mouthpieces in the MSM and are too ignorant to figure out how they are getting screwed by inflation and the non-stop transfer of their wealth to the bankers.
How’s QE to Infinity working out for you?