Buying your own bonds. Whodda thunk? Jesus . . . On Nov 4, 11:08 am, Travis <[email protected]> wrote: > <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-...> > *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/SB1000142405274870350690457559247135477...> > : > > *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/SB1000142405274870350690457559247135477...> > > Add a comment to this > post<http://scottystarnes.wordpress.com/2010/11/03/fed-to-buy-600-billion-...> > <http://feeds.wordpress.com/1.0/gocomments/scottystarnes.wordpress.com...> > <http://feeds.wordpress.com/1.0/godelicious/scottystarnes.wordpress.co...> > <http://feeds.wordpress.com/1.0/gofacebook/scottystarnes.wordpress.com...> > <http://feeds.wordpress.com/1.0/gotwitter/scottystarnes.wordpress.com/...> > <http://feeds.wordpress.com/1.0/gostumble/scottystarnes.wordpress.com/...> > <http://feeds.wordpress.com/1.0/godigg/scottystarnes.wordpress.com/12935/> > <http://feeds.wordpress.com/1.0/goreddit/scottystarnes.wordpress.com/1...> > > [image: WordPress] > > WordPress.com <http://wordpress.com/> | Thanks for flying with WordPress! > Manage > Subscriptions<http://subscribe.wordpress.com/?key=5d39acfd19218362d540a3fc3dc3315d&;...>| > Unsubscribe<http://subscribe.wordpress.com/?key=5d39acfd19218362d540a3fc3dc3315d&;...>| > Publish text, photos, music, and videos by email using our Post > by Email <http://support.wordpress.com/post-by-email/> feature. > > *Trouble clicking? 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