Bernanke Plans on Inflation, Treasuries Sell at Negative Yield and China Accuses US of Dollar Printing
Posted on Oct 26, 2010 in Economic News, Federal Reserve & BankersKevin Hayden
TruthisTreason.net
Bernanke Asset Purchases Risk Unleashing 1970s Inflation Genie
For the second time since he became chairman in 2006, Ben S. Bernanke is leading the Federal Reserve into uncharted monetary territory.
Bernanke next week is likely to preside over a decision to launch another round of large-scale asset purchases after deploying $1.7 trillion to pull the economy out of the financial crisis, comments from policy makers over the past week indicate. This time, with interest rates already near zero, the Fed will be aiming to increase the rate of inflation and reduce the cost of borrowing in real terms. The goal is to unlock consumer spending and jump-start an economy that’s growing too slowly to push unemployment lower.
Estimates for the ultimate size of the asset-purchase program range from $1 trillion at Bank of America-Merrill Lynch Global Research to $2 trillion at Goldman Sachs Group Inc., with economists at both firms agreeing the Fed will likely start by announcing $500 billion after the Nov. 2-3 meeting. The danger is that once the Fed kindles price increases, inflation will be difficult to control.
“By reducing real interest rates and trying to break the psychology of ‘Why spend today when I can buy goods cheaper tomorrow,’ they are hoping to drive growth that would be more commensurate with a pickup in employment,” said Dan Greenhaus, chief economic strategist at Miller Tabak & Co. in New York. “The risk is a late 1970s type of scenario where the inflation genie gets out of the bottle.”
The U.S. Treasury Department yesterday sold $10 billion of five-year Treasury Inflation Protected Securities at a negative yield for the first time at a U.S. debt auction as investors bet the Fed will be successful in sparking inflation. The securities drew a yield of negative 0.55 percent.
Continue reading here @ Bloomberg
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Treasury Draws Negative Yield for First Time During Sale
The Treasury sold $10 billion of five-year Treasury Inflation Protected Securities at a negative yield for the first time in the history of U.S. debt.
The securities drew a yield of negative 0.55 percent, the same as the average forecast in a Bloomberg News survey of 7 of the Federal Reserve’s 18 primary dealers.
Continue reading here @ Bloomberg
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China Retaliates Again, Accuses US Of “Out Of Control” Dollar Printing
@ Zero Hedge
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- U.S. Treasuries Post Worst Performance Among Sovereign Markets
- And So It Begins: China and Russia Drop US Dollar in Trade Pact
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Geithner and Bernanke (both members of Hillary’s shadow government) continue their insane orgy of spending and looting our economy for their cronies and special interests.
If Hillary’s puppets, Barack Obama and Kathleen Sebelius, sincerely wanted to lower unemployment (9.5%) and underemployment (18%), they could do, oh so easily:
• Repeal Obamacare post haste….why spend a trillion dollars to buy health care for the 32 million Americans who are currently receiving it for free right now?
• Give current Medicaid and Medicare recipients vouchers and let them purchase whatever health insurance fits their needs…this would cut the cost of these corrupt programs by an amazing 70%
• Sell all government hospitals…Army, Navy, Air Force, VA, US Public Health Service…sell all the government hospitals to the highest bidder…and instead, give this group of patients vouchers and let them buy with the vouchers, whatever health insurance that fits their needs….many of these patients would end up using the same hospitals, doctors and nurses… but for all parties, on a happier, more polite, more professional, outcome orientated, fee for service basis
• Issue a federal mandate that would allow patients to cross state lines, in order to purchase more competitive health insurance….in other words break up those BCBS monopolies like the BCBS scam that Sebelius and her trial lawyer cronies ran in Kansas, for years and years.
Do these things and bingo, our economy rights itself almost overnight. But continue as Hillary’s shadow government, including Geithner and Bernanke….continue as Hillary’s Marxists have been manipulating us, and we will continue our national slide into the abyss.
To learn more about Sebelius’ role in Hillary’s corrupt shadow government go to http://www.sebeliuscoverups.com or just search:
George Meredith MD Comments
George Meredith MD
Virginia Beach