The next recession should be interesting. They are using endless gimmicks now just to keep the economy treading water. Imagine when it´s contracting again with no way to ´stimulate´.

But the most important thing is, it´s "historic".

/ s off/

Once the inflation genie gets out they won´t be able to stop it and the normal way of raising interest rates can not be done. The opposite of an deflationary depression is an inflationary one.

Can someone please explain to me how writing yourself an IOU for 2022 for 1 Trillions dollars and using it to
"buy" 1 trillion dollars worth of ious due in 2014 pumps any money at all inoto the economy.

The real economy where people actually buy things like food and gas. I would love to pull this miracle. I owe the bank a mortgage due each month. Why can´t I simply write myself an iou for the whole thing due sometime in say 2050 and use that to pay of the bank tomorrow? I sure could stimulate the economy with all that free money I just saved every month.

Think the bank will go for it?

By the way, do the math. 45 Billion a month in Bond purchases above the current 40 billion month Mortgage securities purchase works out to 1.02 Trillion dollars a year, or roughly one third of the federal budget (althouh less than we borrow from China)

The Fed is simply printing over a trillion dollars a year and is telling us it will continue to do so indefinitely. Does ANYBODY remember the Weimar Republic???

It might be a good idea to have those wheelbarrows handy when you go to the store for a loaf of bread that´s going to cost hundreds of thousands of dollars. That is if there is any bread to be had. Third world death spiral.

The Fed is admitting that it no longer has an effective mechanism to counter Obama´s anti-growth policies. All that it can do is to purchase Treasury obligations to flatten the entire yield curve to near zero interest. Zero rates, whether overnight to 30 years, don´t matter if you do not have enough confidence to borrow money, whether for a home or business.

So...more of the same.

Unprecedented!

What they don´t tell you is that the government will always lie about the level of inflation.

FTA:..it will continue to stimulate growth until the unemployment rate falls to 6.5 percent or the inflation rate reaches 2.5 percent." Or , until morale improves.