Dec. 2 (Bloomberg) -- Federal Reserve Chairman Ben Bernanke signaled he’s ready to dig deeper into the central bank’s toolkit after cutting interest rates almost as much as he can, opening the door to a shift by policy makers this month.
Bernanke yesterday said he may use less conventional policies, such as buying Treasury securities, to revive the economy, because his room to lower the main U.S. rate from the current 1 percent level is “obviously limited.” Even so, reducing the rate is “certainly feasible,” he said.
___________________Bernanke's 2002 Helicopter Speech is now coming true. Like Hitler with Mein Kampf, he told us what he was going to do way in advance. And then, he did it.
Wow.
Desperate times call for desperate measures. And now, the electronic printing press.
Bernanke is going to significantly devalue the US Dollar while suppressing T-bill yields, so that the sheeple think their homes are no longer falling in 'value', monthly payments go down as refi's explode, the stock market rallies, 401k's are 'saved', prices in stores stop falling, oil starts going back up, and all those trillions we owe won't be so much of a problem anymore.
And everyone feels rich, rich, rich again, and gets out to Circuit City and buys more flat screen TV's! (oh, wait, make that Best Buy).
Zimbabwe and Weimar Germany ain't got nothin' on us. The rate won't be as high, but the scope of this inflation is going to be big. And this mad rush into the 'safety' of US dollars and all this talk of deflation today will turn into a mad rush out of dollars and mad inflation soon enough. Try not to get whiplash when it happens.
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The Demotivator mugs say it best.
Government 15 oz Mug: If you think the problems we create are bad, just wait until you see our solutions.
He really should just cut the rate to -1%.
That'd shut up the "out of bullets" arguments...
He could actually get the banks back to colvency by loaning them a few trillion.
Will need to update some phrase books though, starting with:
"A billion dollars here, a billion dollars there, pretty soon you are talking about a nice lunch"
UN team warns of hard landing for dollar
By Harvey Morris in New York
Published: December 1 2008 08:48
The current strength of the dollar is temporary and the US currency risks a hard landing in 2009, according to a team of United Nations economists who foresaw a year ago that a US downturn would bring the global economy to a near standstill.
In their annual report on the world economy published on Monday, the economists said the dollar’s sharp rebound this autumn had been driven mainly by a flight to the safety of the international reserve currency as the financial crisis spread beyond the US.
The overall trend remained a downward one, however, reflecting perceptions that the US debt position was approaching unsustainable levels. An accelerated fall of the dollar could bring new turmoil to financial markets.
The UN team said that, as the financial crisis spread beyond the US, there had been a massive shift of global financial assets into US Treasury bills, driving their yields almost to zero and pushing the dollar sharply higher. At the same time, however, the US’s external debt had risen to new heights that could provoke a dollar collapse.
CD interest rates to 11%.
30 year fixed jumbo mortgages 18-22% and generally unavaile except to Warren Buffet, Bill Gates, et. al.
Nowhere will be safe for these guys to hide. The pitchforks are all tuned up and ready.
Bush's private Army will be well trained and equipped but outnumbered.
There is a black Raven croaking on the bearded ones door...
Nevermore.
The only thing that can save America now is a full blown people's revolution.
We storm Washington.
We throw the bastards in jail.
We restore the Constitution and make failure to obey the Constitution punishable by law.
We need to restore the Rule of Law in this country and bring down the Rule of Men and the rule of corrupt individuals like Bush, Bernanke, Paulson, Cheney, Rove, Obama, McCain, Clinton etc etc...
So again, if fiat money is...fiat, then why wouldn't one have debt and buy a house? During the the hyperinflation of the 20's in Germany, many corporations got richer by going into debt and then paying off that debt with fiat money. Only after they hit that downside of the bell curve did things go really bad, but it was fun on the way up! Those who were frugal lost.
Also, with all the government intervention in the market, wouldn't hit be better for all consumers if the Fed, which now owns most of the country, told the banks to lower their interest rates on credit to no more than 2 or 3% above the Fed rate? If you owe $3,000 on a credit card and are paying 12% interest, the banks are making a killing at what the Fed lends them the money. If they reduced that amount to say 4%, the loan would get paid down quicker giving the debtor more money to spend in the general economy.
Seems better to have debtors pay down the debt as quickly as possible and get your capital back than have them default and loose 1/2 or more of your capital.
So again, if fiat money is...fiat, then why wouldn't one have debt and buy a house? During the the hyperinflation of the 20's in Germany, many corporations got richer by going into debt and then paying off that debt with fiat money. Only after they hit that downside of the bell curve did things go really bad, but it was fun on the way up! Those who were frugal lost.
Also, with all the government intervention in the market, wouldn't hit be better for all consumers if the Fed, which now owns most of the country, told the banks to lower their interest rates on credit to no more than 2 or 3% above the Fed rate? If you owe $3,000 on a credit card and are paying 12% interest, the banks are making a killing at what the Fed lends them the money. If they reduced that amount to say 4%, the loan would get paid down quicker giving the debtor more money to spend in the general economy.
Seems better to have debtors pay down the debt as quickly as possible and get your capital back than have them default and loose 1/2 or more of your capital.
Tell you Financial Consultant (Broker) you want to diversify. They all love that.
Tell him you want out of just stocks and bonds. You want Gold. Not ETFs. No Gold stocks. Gold coins in safe deposit boxes.
Tell him you want out of just assets based on USD. You want stuff in Swiss Francs and Yen.
Tell him you want not just investment advice from U.S. investment consultants. You want advice from people in Bangalore and Beijing.
Watch him flip out.
Trump defaulting on loans. again? again.
Headline: "Paulson Considering Plan to Revive Housing by Driving Down Mortgage Rates"
Housing needs to die first Paulson, you punk bitch.
You said:
"Bernanke is going to significantly devalue the US Dollar while suppressing T-bill yields, so that the sheeple think their homes are no longer falling in 'value', monthly payments go down as refi's explode, the stock market rallies, 401k's are 'saved', prices in stores stop falling, oil starts going back up, and all those trillions we owe won't be so much of a problem anymore."
All I can say is I am shocked and stunned. You pretty much copied my treatise verbatim (except I don't use that "sheeple" term). Looks like my lessons have finally gotten through to you kids.
Good job, A+ for you today. 2 gold stars and a happy-face sticker for you.
Class dismissed...
I use to believe (3 yrs ago) the CD rates would skyrocket.
I don't believe it anymore.
Lets look to Japan- their rates went all the way down to 0%.
Lets face it, we're not savers, plus banks are not desperate since they received with a blessing - a taxpayer "bailout".
Banks have all the cash they need. Remember 6 mo ago when Ben issued the "cash for trash" campaign? banks could anonomous exchange bad mortgages for cash at the fed window?
Banks will now use our money to shore up their balance sheets-no need to offer high interest rates on customer deposits.
Anyone agree, or disagree?
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