Tell US Again the Fed's Going to Stop Printing Money
Date: 2009-08-09T00:00:00
Author: Angie Pratt
Byline: Editor
Editor note: Bernanke says that he doesn't have to buy any more treasuries.
Personally ... I don't believe him
Teaser: I don't believe it. I don't. How is the Fed going to stop printing money? It's not like the government is going to stop spending money. And … the last I heard revenues from taxes … all of them … have gone down … by a bunch.
According to Bloomberg though, the Fed is thinking that maybe it was time to stop the QE and limit treasury purchases to the originally planned $300 billion.
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I don't believe it. I don't. How is the Fed going to stop printing money? It's not like the government is going to stop spending money. And … the last I heard revenues from taxes … all of them … have gone down … by a bunch.
According to Bloomberg though, the Fed is thinking that maybe it was time to stop the QE and limit treasury purchases to the originally planned $300 billion.
The Fed is nowhere near through selling treasuries. The only way the Fed can stop buying treasuries (a.k.a. printing money) is to get somebody else to buy them. Why on earth would anybody want to buy treasuries? So they can be like China? Damned if they do and damned if they don't?
The only reason why people would loan money to the US is if they thought everybody else was worse off than us.
And this past week you have the UK increasing their Quantitative Easing and admitting that things were worse than they thought – right after the UK pound went up in value after bottoming back in January.
And … you have Germany announcing that its banking woes are not over. Fact is there are a bunch of additional bad loans that are going to be hitting … well … now … and for the foreseeable future. Convenient that the US's inflationary predicting numbers ran smack into Germany's deflationary numbers. And … as a consequence … market numbers hardly moved.
The only other way to keep the Fed from buying more treasuries is for interest rates to skyrocket. That'll put a damper on any economic recovery parties.
And … you know what … if Geithner, Summers, Bernanke or Obama say ... you know ... later on ...heck we're as surprised as everybody that the Fed's HAD to print more money … I'm going to be even more pissed than I am already.
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