<http://scottystarnes.wordpress.com/author/scottystarnes/> Fed to Buy $600 Billion of Treasurys<http://scottystarnes.wordpress.com/2010/11/03/fed-to-buy-600-billion-of-treasurys/> *Scotty Starnes <http://scottystarnes.wordpress.com/author/scottystarnes/>*| November 3, 2010 at 5:31 PM | Tags: Ben Bernanke <http://scottystarnes.wordpress.com/tag/ben-bernanke/>, buying debt<http://scottystarnes.wordpress.com/tag/buying-debt/>, economy <http://scottystarnes.wordpress.com/tag/economy/>, inflation<http://scottystarnes.wordpress.com/tag/inflation/>, mortgage bonds <http://scottystarnes.wordpress.com/tag/mortgage-bonds/>, The Federal Reserve<http://scottystarnes.wordpress.com/tag/the-federal-reserve/>, U.S. Treasurys <http://scottystarnes.wordpress.com/tag/u-s-treasurys/>, unemployment <http://scottystarnes.wordpress.com/tag/unemployment/>, US taxpayers <http://scottystarnes.wordpress.com/tag/us-taxpayers/> | Categories: Uncategorized<http://scottystarnes.wordpress.com/category/uncategorized/>| URL: http://wp.me/pvnFC-3mD
There they go again. The Federal Reserve is purchasing another $600 billion of debt. This is on top of the $1.7 trillion dollars of debt the Federal Reserve purchased already. $2.3 trillion dollars of debt purchased after Fed Chairman, Ben Bernanke, said we wouldn't be purchasing our debt. The money shell game continues and the taxpayers are on the hook as usual. >From the Wall Street Journal<http://online.wsj.com/article/SB10001424052748703506904575592471354774194.html?mod=djemalertNEWS> : *The Federal Reserve Wednesday unveiled a controversial new plan to buy U.S. Treasurys*, hoping to spur growth in a disappointingly slow U.S. economy. After two days of discussions, *Fed officials decided to go ahead with a much anticipated program, saying they will buy $600 billion of U.S. government debt over the next eight months.* The Fed's policy-setting body said it stands ready to *purchase more bonds if the economy's persistent weakness leads inflation to remain too low and unemployment too high*. The Fed's* first $1.75 trillion bond-buying program*, which ran from *Dec. 2008 to March 2010*, is credited with helping the economy when the U.S. was hit by a financial crisis and a deep recession. The latest move is more controversial because the economy is now growing -- albeit slowly -- and financial markets are no longer under severe stress. *By buying government bonds, the Fed aims to keep long-term interest rates low, hoping it will lead consumers to spend and companies to invest more, thus helping to propel the economy forward.* Short-term interest rates were slashed close to zero in Dec. 2008, so the Fed no longer has its traditional weapon to boost the economy. The Fed said it expects to buy between *$850 billion to $900 billion Treasurys through the end of the second quarter of 2011.* That's because *in addition to the $600 billion, the Fed expects to buy about $35 billion a month to replace mortgage bonds in its portfolio *that are being retired, a decision that was taken back in August The Fed will *"continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary"* to support the recovery. Fed officials said the *economic recovery that started in June 2009* and hit a stumbling block last summer continues to be slow. Consumer spending, while increasing gradually, continues to be constrained by a high unemployment rate. Inflation is likely to "remain subdued for some time." *Some 16 months after the recession officially ended, the unemployment rate is stuck close to 10% and prices remain very low as companies struggle to lure buyers.* An underlying measure of inflation that's closely watched by the central bank rose just 1.2% in the year through September, the lowest level in nine years and below the Fed's informal goal of around 2.0%. Continue reading>>><http://online.wsj.com/article/SB10001424052748703506904575592471354774194.html?mod=djemalertNEWS> Add a comment to this post<http://scottystarnes.wordpress.com/2010/11/03/fed-to-buy-600-billion-of-treasurys/#respond> <http://feeds.wordpress.com/1.0/gocomments/scottystarnes.wordpress.com/12935/> <http://feeds.wordpress.com/1.0/godelicious/scottystarnes.wordpress.com/12935/> <http://feeds.wordpress.com/1.0/gofacebook/scottystarnes.wordpress.com/12935/> <http://feeds.wordpress.com/1.0/gotwitter/scottystarnes.wordpress.com/12935/> <http://feeds.wordpress.com/1.0/gostumble/scottystarnes.wordpress.com/12935/> <http://feeds.wordpress.com/1.0/godigg/scottystarnes.wordpress.com/12935/> <http://feeds.wordpress.com/1.0/goreddit/scottystarnes.wordpress.com/12935/> [image: WordPress] WordPress.com <http://wordpress.com/> | Thanks for flying with WordPress! Manage Subscriptions<http://subscribe.wordpress.com/?key=5d39acfd19218362d540a3fc3dc3315d&email=baconlard%40gmail.com>| Unsubscribe<http://subscribe.wordpress.com/?key=5d39acfd19218362d540a3fc3dc3315d&email=baconlard%40gmail.com&b=i%5B%2BxJK%3FcNAU%3Dyo%3Fv%3Dzn0rXaKp.BgcDhf.tERWo7B>| Publish text, photos, music, and videos by email using our Post by Email <http://support.wordpress.com/post-by-email/> feature. *Trouble clicking? Copy and paste this URL into your browser:* http://subscribe.wordpress.com -- Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more.
