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It’s Official: Here’s the Fed’s Major Announcement (QE3 Is Here!)

Sep. 13, 2012 12:47pm Becket Adams

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The Federal Reserve announced Thursday that it will spend $40 billion a month to buy mortgage-backed securities for long as necessary to stimulate the economy and reduce high unemployment.

“If the outlook for the labor market does not improve substantially, the committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability,” the Fed said in a statement released after the meeting.

You know what this means, right? It means the Fed has just introduced a third round of unlimited, open-ended quantitative easing.

Because the other two worked so well, right?

“The Committee is concerned that, without further policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions,” the statement added.

The Fed also announced it would continue to sell shorter-dated government debt and buy longer-term securities, meaning the it’s keeping “Operation Twist” in place.

“These actions, which together will increase the Committee’s holdings of longer-term securities by about $85 billion each month through the end of the year, should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative,” the statement continued.

The statement was approved on an 11-1 vote. The lone dissenter was Richmond Fed President Jeffrey Lacker, who worries about igniting inflation.

The Dow Jones industrial average was up 15 points for the day just before the announcement at 12:30 p.m. Eastern time. It had surged 105 points within minutes of the announcement, then gave up some gains to be just 35 points higher.

The dollar dropped against major currencies, and the price of gold shot up about $16 an ounce, roughly 1 percent, to $1,750.

GLD quote as of 1:17 pm EST

“The Fed has now confirmed it is merely a sad, political, self-frontrunning caricature of what a central bank should be,” the site Zero Hedge said in response to the news.

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This story has been updated. The AP contributed to this story.

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Comments (228)

term limits for congress
Posted on September 13, 2012 at 1:11pm
Federal Reserve = Democrate Super PAC

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- sbenard
  Posted on September 13, 2012 at 1:15pm
  And with unlimited funds!
  
  Report this comment
- Rothbardian_in_the_Cleve
  Posted on September 13, 2012 at 1:20pm
  Not even close dude. It has NOTHING to do with party. Read the Creature from Jekyll Island. The fed is its own monster. Many a republican has drank from the cup of the Fed. Heck, even Romney is a Fed apologist.
  
  Report this comment
- Threeve_Texas_With_A_Dollar_Sign
  Posted on September 13, 2012 at 1:30pm
  I concur with Rothbardian. The only partisan politics the Fed is involved with is who the president nominates to be the chair and on the boards. Bad with GOP, worse with democrats.
  
  Report this comment
- U.N.hater
  Posted on September 13, 2012 at 1:31pm
  While your at it Mr. fed could you go ahead and print QE4,5,6,7,8,9 and 10 to please? The sooner this **** falls apart the sooner we real americans can rebuild america back to the constitution….With out you Mr. fed…..
  
  Report this comment
- Penn
  Posted on September 13, 2012 at 1:38pm
  Term limits are fine, but they don’t work for career burocrats like Ben “The Destroyer of America” Bernanke.
  
  Report this comment
- Shiroi Raion
  Posted on September 13, 2012 at 1:49pm
  You think Moody’s will downgrade America’s credit rating? Would you blame them?
  Democrats keep talking about the economy as if there is only a set amount of wealth in the world. If they actually believed that, why do they keep printing money and devaluing the dollar? What about the people who have retired and are living off of their life savings? The Democrats are the party looking out for the poor and middle-class? BULL$#!T!
  
  Report this comment
- GunsBlazin
  Posted on September 13, 2012 at 1:54pm
  When is it time to use our second amendment rights?
  
  Report this comment
- DarkJello
  Posted on September 13, 2012 at 1:59pm
  Yeah! More money = more good for humanity!! The dems care so much. /sarcasm
  
  Report this comment
- geotico
  Posted on September 13, 2012 at 2:01pm
  premiums on gold and silver are staying the same for now. I just checked http://www.goldshark.com and the price of gold and silver is ticking up fast. I bet the premium on coins will go up as people again rush to the metals to protect against inflation.
  
  Report this comment
- techengineer11
  Posted on September 13, 2012 at 2:03pm
  The FED is for Totalitarianism because they know they can’t survive when the truth sees the light of day therefore they are by and large for the Democratic machine which is nothing but pure Marxism at it’s core and pure Jewishness.
  
  How many Jews sit on the FED board again? And what is the Chairman and Vice Chair?? Bet if they were Arabs or Asians you’d be mad as hell but since they are Jewish well that’s ok because they are chosen to rule the world and besides they are good with money… lol
  
  Wake up people!! You’ve been had…
  
  On another topic I’ve been listening to talk radio and I marvel at the anger over the death of 4 Amerians in an Arab country… Why is this so bad?? Tens of thousands of Americans are murdered in our back yards each and every year… lol No anger?? That’s ok?? But when an Arab kills an American after we’ve killed countless Arabs not in America but in Arab lands then we get all upset and bent out of shape over it..
  
  Truly amazes me how dumb and blind you idiots are by and large. I know that there are some Paul supporters on here that see the light but most of you Republicans are about as damn braid dead as the liberal fools… And we’ve been beating you over the head with the truth now for well over a year… Makes one wonder whose really the dumbest the liberal or the conservative.. One thing is for certain and that is that you are both blinded and deceived.
  
  Report this comment
- Chinishque
  Posted on September 13, 2012 at 2:10pm
  It is as if we dont recognize slavery when we see it…ok maybe indentured servitude for ourselves and our posterity. The only way they could undermine our constitution so that we the people worked for them again was to take control of the money. But this isnt about money per say…it is about control.
  
  Americans…you are no longer free! Welcome to serfdom.
  
  Report this comment
- DarkJello
  Posted on September 13, 2012 at 2:17pm
  Between the fed’s move and the “soda ban”, I am nearing my limit. Not sure which is worse.
  
  Curious that you can get an abortion in NYC, but not a 32oz soda.
  
  Report this comment
- WakingSheep
  Posted on September 13, 2012 at 2:28pm
  Nothing to see here GOP…. Move along…. Move along….
  
  Report this comment
- little big man
  Posted on September 13, 2012 at 2:31pm
  REPORTS: No Live Ammo for Marines
  
  Marine blogs say U.S. embassy did not authorize service members to carry ammo
  
  U.S. Marines defending the American embassy in Egypt were not permitted by the State Department to carry live ammunition, limiting their ability to respond to attacks like those this week on the U.S. consulate in Cairo.
  
  Ambassador to Egypt Anne Patterson “did not permit U.S. Marine guards to carry live ammunition,” according to multiple on U.S. Marine Corps blogs spotted by Nightwatch. “She neutralized any U.S. military capability that was dedicated to preserve her life and protect the US Embassy.”
  
  U.S. officials have yet to confirm or comment on the reports. Time magazine’s Battleland blog Thursday “Senior U.S. officials late Wednesday declined to discuss in detail the security at either Cairo or Benghazi, so answers may be slow in coming.”
  
  If true, the reports indicate that Patterson shirked her obligation to protect U.S. interests, Nightwatch states.
  
  “She did not defend U.S. sovereign territory and betrayed her oath of office,” the report states. “She neutered the Marines posted to defend the embassy, trusting the Egyptians over the Marines.”
  
  While Marines are typically relied on to defend U.S. territory abroad, such as embassies, these reports indicate that the Obama administration was relying on Egypt’s new Muslim Brotherhood-backed government to ensure American security, a move observers are questioning
  
  Report this comment
- JRook
  Posted on September 13, 2012 at 2:32pm
  “Because the other two worked so well, right?” Becket while you might know something more about economics than Palin or O’Donnell (tough bar there huh?)…. you obviously don’t grasp the deflationary threat that has loomed over the US economy since 2000. The outsourcing of jobs and associated devaluation of US, and the concentration of wealth are the 2 biggest threats to the US economy. But then again you might have to consult someone other than Fox & Friends or GB to understand something that is this obvious.
  
  Report this comment
- Independent4233
  Posted on September 13, 2012 at 2:34pm
  Well, as a holder of gold and silver, this will increase my metals assets, but I’m not for it at all. It’s just a delaying tactic as were the first two stimulus schemes.
  
  I Imagine home prices may increase as well if the number of toxic mortgages are reduced, so long as the homes represented by the mortgage purchases are not put on the market right away.
  
  My wife and I own rural property, which will probably increase in value, but we’re in such a good location, when the bottom falls out, we will be safe from the roaming urban hordes looking for food and anything else they can steal.
  
  I think the ONLY chance we have of coming out of this financial mess EVENTUALLY will be about eight years of Romney, but I seriously doubt that will placate the urban masses so it looks like civil war anyway, since the process will require a tightening up of social freebies which is what is bringing Europe down right now.
  
  Report this comment
- DarkJello
  Posted on September 13, 2012 at 2:38pm
  @tech11:
  
  Thanks for sharing your thoughts, I guess. Blanket condemnations are cool beans.
  
  Report this comment
- mikem1969
  Posted on September 13, 2012 at 2:38pm
  The fed is criminal no matter who is in office. It is generally wose with dems though.
  
  Here is an idea, since they print money any time they want to, why don’t they take a look at all the debt each US citizen has, and send each of them a check so they can pay off their debt. Once that happens, not only will the housing market pick up, but so will the rest of the economy. However, with each new printing of cash the dollar falls even more in value, thus driving the price of things even higher.
  
  Report this comment
- Rothbardian_in_the_Cleve
  Posted on September 13, 2012 at 2:55pm
  JROOK,
  
  First off, let me acknowledge that you are a freaking moron. Ok, now let’s talk turkey. “Deflationary threat” you say? Let’s look at some numbers over the last decade. This would include 2 “recessions”, but I’d argue that it really spans one long depression not unlike Japan. So, let’s see if we see this deflation you talk about.
  
  Home Prices up 19% (Case-Shiller Index) 119.84 to 142.21
  Silver up 702% 4.18 to 33.52
  Gold up 538% 271 to 1731
  Crude Oil 321% 25.03 to 105.28
  Corn up 270% 89 to332 per ton
  Rice up 234% 173 to 577 per ton
  Gas up 155% 151 to 3.85
  Food Price Index up 128% 81 to 185
  Alternative CPI (all inclusive) up 158%
  BLS (aka BS) Inflation up 29%
  Dow Jones up 38%
  
  So what is going down? Technology Of course the relative cost of technology has gone down for decades. That’s what innovation does. Durable goods like TV’s and Dishwashers. Of course they have been falling since the 1970′s. Total employment and Labor Participation Rate. Yep, you’re right, those are falling like a rock.
  
  The only “deflation” worry is for the schiesters who own the asset classes that have been pumped up with fiat currency and inflated with protectionist regulations (see CRA of 1974 and the housing bubble). The only people worrying about deflation right now are people who are crooked and on the take.
  
  Report this comment
- Drives Like Jehu
  Posted on September 13, 2012 at 2:57pm
  Well, how else were the demonrats going to dispose of all that worthless mortgaged backed paper they created??? Now everyone who had the nerve to have a dollar in his/her savings funds their subterfuge via devaluation.
  
  Report this comment
- Rothbardian_in_the_Cleve
  Posted on September 13, 2012 at 3:01pm
  @Mike,
  
  They NEVER want us to be debt free either personally or collectively. The only way this whole thing works is if we are all serfs and debt slaves. If you are free then you don’t need “them”. We can’t have that. When you are personally and collectively in debt then you shut up and go to work and feed the system like the good little prole that you are.
  
  Can you imagine how different our country would look if we were personally and collectively debt free? Holy crap, government would crumble. There would be hundreds of thousands of people who are not needed. Our relationships with companies would change entirely. They’d compete for us because we had choices. The Fed couldn’t print money because we wouldn’t let them. The government couldn’t control us because we wouldn’t be indebted to them(us). We could invest and transact with each other. We could innovate and grow. It would be like a whole new day. It would be like the day Franklin came out of the continental congress and talked to that woman. It would totally rock.
  
  Report this comment
- TH30PH1LUS
  Posted on September 13, 2012 at 3:01pm
  Because you have forgotten the God of your salvation,
  And have not been mindful of the Rock of your stronghold,
  Therefore you will plant pleasant plants
  And set out foreign seedlings;
  In the day you will make your plant to grow,
  And in the morning you will make your seed to flourish;
  But the harvest will be a heap of ruins
  In the day of grief and desperate sorrow. (from Isaiah chapter 17)
  
  Report this comment
- mikem1969
  Posted on September 13, 2012 at 3:41pm
  @Roth, you said it.
  
  Report this comment
- FlamingFartSyndrome
  Posted on September 13, 2012 at 3:49pm
  Do some research about the FED, and you’ll see it is the establishments DEM and REP super pacs. Under the Bush administration we had TARP, which was government forcing banks to give people who couldn’t afford homes housing loans so they could live in houses they could not afford. Under the Obama administration we have Obamacare, where government forces hospitals to give care to those who can’t afford it. Both schemes are paid for by tax payers. And when we use the FED to create money out of thin air to pay for such things, inflation is the biggest tax.
  
  Report this comment
- jedoug3d
  Posted on September 13, 2012 at 3:54pm
  Who’s John Galt?
  
  Report this comment
- FlamingFartSyndrome
  Posted on September 13, 2012 at 3:55pm
  @ ROTH & MIKE
  
  Glad to hear some people know the truth
  
  Report this comment
- black9897
  Posted on September 13, 2012 at 4:59pm
  @LITTLEBIGMAN
  
  Yep. When I was in college my Government professor (a former member of the CIA, his whole life) told us those at embassies aren’t allowed to have ammo in their guns. Not sure if he meant ALL or just some. Either way that’s absurd.
  
  Report this comment
- WindyDualism
  Posted on September 13, 2012 at 6:36pm
  Rookie
  How often do you wish you had kept your gob shut? Well said, once again Roth.
  
  Tech
  Where is your nazi bud Jerk? Aren’t the antisemite twins supposed to “back” each other up? You have to realize at some point, peeps see “tech” and skip over the scat.
  
  Report this comment
- BIGWUN
  Posted on September 13, 2012 at 6:37pm
  Fiat currency has always been the place to put your money. Trust the gummint. The rulers may have been wrong the first 10,000 times fiat currency was provided in lieu of value, restraint and freedom but this time it will work for sure, according to Fed Sandbox Chairman, Ben Dover.
  I have made a life-study of fiat currency value and have traced it to the first time it was ever tried in Neolithic times where an attempt was made to replace Rocks with Sand. Those who converted to Sand were beat to death with Rocks.
  
  Report this comment
- ChiefGeorge
  Posted on September 13, 2012 at 7:01pm
  Whats that I hear? Swissh, bubble….gurgle.
  
  Is that the sound of sub silo tubes filling with sea water? Is that rockets red glare I see on the Western horizon near LA?
  
  This will start WW3 if anything does. These maniacs are running wild in DC and they are going to get this country and its population in serious and deadly trouble. We were warned by the Chinese when QE2 was on the table and when it went forward by the Fed we saw a warning shot fired across our West coast bow. These people are going to start WW3 and what is crazier is that they probably think they can win it and start over anew. God help us!
  
  Report this comment
- ProbIemSoIver
  Posted on September 13, 2012 at 7:15pm
  They can buy up 40 billion dollars a month in mortagage backed securities because they just print it up out of thin air and charge us interest. We are so far in debt to them that this insanity is nothing more than a seizure of America’s Assets.
  
  The Federal Reserve PRIVATE BANK seized America and it’s assets ( INCLUDING YOU !!!!) in 1933.
  Here check this out:
  http://www.youtube.com/watch?v=IlCs7u1ihws
  
  In 1944 The IMF and World Bank aquired the lien and created the UN the following year:
  http://www.teamlaw.net/history.htm
  
  In 1992 (same year Agenda 21 emerged) The United Nation’s IMF and World Bank began Foreclosure and liquidation under Bushes E.O.# 12803 – Infrastructure Privatization.
  Whats that?
  AMERICA FOR SALE or LONG TERM LEASE !!!!!
  http://rense.com/general86/nomis.htm
  
  Here is more info:
  http://www.barefootsworld.net/usfraud.html
  
  and more:
  http://www.youtube.com/watch?feature=endscreen&v=ek_3X2ONCx0&NR=1
  
  Here is a CLASSIC, entertaining, 30 minute cartoon explaining a lot of this:
  http://www.youtube.com/watch?v=tGk5ioEXlIM
  
  Even Louis Farrakhan knows we are all debt slaves to the Global Banksters:
  http://www.youtube.com/watch?v=xZkR1nMw1E0&feature=related
  
  Bush Junior and Obama are cousins:
  http://www.youtube.com/watch?v=_ldZS9PL9KE
  
  Only 6 Companies own 90% of America’s Media
  http://www.technewsdaily.com/4423-6-companies-control-90-percent-media.html
  
  Think of all these links as carpet bombing the Global Elites Agenda.
  
  Report this comment
- Leader1776
  Posted on September 14, 2012 at 2:52pm
  @JROOK
  Paul ……….. PAUL, is that you? It must be you, Paul. You’re the ONLY one with the depth of economic principles to fully grasp our plight. Out-sourcing, wealth concentration, deflation. You’ve been hangin with JMK, again? Time to go sit in the corner for your time-out, JPAWN
  
  Report this comment
- Plumbsensible
  Posted on September 18, 2012 at 8:52am
  The Fed buying up mortgages is like borrowing money from your spouse. While you may temporarily have more money in your possession, it came from the same bank account, and in the long run it will have to be replaced by your own efforts. Personally, I’m sick and tired of the Fed and other agencies borrowing from those who can and do pay taxes to support those who don’t.
  
  Report this comment
- alinmatt
  Posted on September 19, 2012 at 9:21pm
  Roth is right on. Read the Creature from Jekyll Island people. It’s a long book, but very fascinating. You’ll keep reading it because it’s like walking out of a dark tunnel into the light.
  
  Report this comment
Mutiny
Posted on September 13, 2012 at 1:09pm
The GOP had their chance. You all have been warned.

Ezekiel 33 1-5

33 The word of the Lord came to me: 2 “Son of man, speak to your people and say to them: ‘When I bring the sword against a land, and the people of the land choose one of their men and make him their watchman, 3 and he sees the sword coming against the land and blows the trumpet to warn the people, 4 then if anyone hears the trumpet but does not heed the warning and the sword comes and takes their life, their blood will be on their own head. 5 Since they heard the sound of the trumpet but did not heed the warning, their blood will be on their own head. If they had heeded the warning, they would have saved themselves.

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- ChiefGeorge
  Posted on September 13, 2012 at 7:12pm
  We were warned on 911 to get our house in order and we did not heed it.
  
  Isaiah 9-10 the Harbinger. The warning to Israel was clear but they said, the bricks have fallen and the sycamores have been cut down, but we will rebuild with hewn stone and plant cedars, we will be stronger. America copied this very thing right after 911 on 9/12 when Tom Dascle repeated the scripture word for word from the Old testament. John edwards did the same thing as well on 2003 anniversay. America was warned and warned again on 9/08 when the stock market went down 777.78. Here comes the death blow because we are so arrogant and remain defiant against Gods warnings to turn back. Slow down, take stock of all he has given us, stop coveting, stop wanting so much more than we can afford. We bring it upon our own heads.
  
  Report this comment
Individualism
Posted on September 13, 2012 at 1:02pm
Its also to help Obama win relection and he will try to take credit for the temporary up from this. but money is becoming more and more worthless. hard assets is where its at and they will go up cause of this.

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- bpodlesnik
  Posted on September 13, 2012 at 1:17pm
  How could this help him? Serious question.
  
  Report this comment
- Rothbardian_in_the_Cleve
  Posted on September 13, 2012 at 1:24pm
  No bump from this. The markets had priced it in. This is all just slack now and is inflationary. Yields are all down and commodities are up (oil is up from ME too). This is merely the new normal now…it’s ongoing policy.
  
  The Fed is simply in survival mode. The US govt. has to issue debt because of our budgets. Someone has to buy that junk or else the FOMC will result in market pressure upward on rates. If rates go up the govt is screwed because they are going wholly short on the sales because of the wink from the Fed. This allows us to keep interest payment under 500B (good Lord!!). If rates go up and the short debt rolls over then interest payment could hit 1Tr. easily. So the Fed monetizes the short debt and sells the long to keep the rates low. We export our inflation though higher commodity prices to all of us and the rest of the world. If anyone gets the idea that they don’t want to use dollars anymore we blow them up. Any questions?
  
  Report this comment
- Individualism
  Posted on September 13, 2012 at 1:53pm
  despite inflation due to much lower demand due to diminishing middle class, would there be enough of that to offset inflation so basically we might even have cheaper prices but also much less money. money could be worthless but prices could still go down or stay down due to much less demand. but also if there is innovation to create alternatives that can lower the price to. but the question is if there is enough of that to stop what happened in 1930′s germany with barrels of paper for bread. i suppose if anyone tries to opt out of central banking system USA and their milithugs attack them.
  
  Report this comment
Chrison
Posted on September 13, 2012 at 1:02pm
One small step for the Fed… one GIANT leap (off the cliff) for mankind!

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- Mil-Dot
  Posted on September 13, 2012 at 2:31pm
  Hey US military, Thanks a lot for watching our backs. Thanks a bunch for standing around while these criminals ruined our country. Thank you, thank you , thank you.
  
  Report this comment
Rational Man
Posted on September 13, 2012 at 1:01pm
WITH WHAT!!!……THERE IS NO MONEY!!!

Somebody tazer those people and try to wake them up!!

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- Unbelievable
  Posted on September 13, 2012 at 1:07pm
  Get the printing presses going!!
  
  Friggin’ Unbelievable!!!
  
  Report this comment
- WakingSheep
  Posted on September 13, 2012 at 2:30pm
  Sure there is.
  Even Romney says we are ready for another war!
  
  Report this comment
Just_Us2
Posted on September 13, 2012 at 1:01pm
Another drop in interest rates…..time to buy real estate.

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- Rothbardian_in_the_Cleve
  Posted on September 13, 2012 at 1:12pm
  You mean buy the right to rent it from the government?
  
  Report this comment
- Wino911
  Posted on September 13, 2012 at 1:39pm
  Hold off another 6 months or so and you can barter real estate for food & supplies.
  
  Report this comment
- coolidge
  Posted on September 13, 2012 at 9:13pm
  I suggest wheelbarrows. I see them on the internet for as low as 14.95 + shipping. You will make a killing in a few years. Lots of good idea’s on this link for an ad campaign.
  
  http://www.bing.com/images/search?q=germany+hyperinflation&qpvt=germany+hyperinflation&FORM=IGRE
  
  Report this comment
vic138
Posted on September 13, 2012 at 1:01pm
Wow. So Obama (or whomever is behind him) has gotten to Roberts and now Bernanke. We are so screwed, this is going to end in disaster. At least its clear now who is running our economy (and it ain’t Obama).

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- DrewS84
  Posted on September 13, 2012 at 1:45pm
  Spooky Dude Soros.
  
  Report this comment
- vic138
  Posted on September 13, 2012 at 1:52pm
  Way above Soros. I think Rothschilds or Bilderbergers. Certainly no one that goes around in public.
  
  Report this comment
- drs1969
  Posted on September 15, 2012 at 12:33am
  I just read yesterday how Obamacare is going to kill jobs. It was a story about a KFC franchise owner in Atlanta named David Barr. He’s going to start cutting some workers’ hours to avoid paying the insurance. Otherwise, they’ll take half the company’s yearly profits. It’s definitely a tax scheme! If Obama gets re-elected, it is absolutely going to kill this country. The upside, all the blacks who voted for him 10x over will starve to death in a few years.
  
  Report this comment
welovetheUSA
Posted on September 13, 2012 at 1:00pm
Put this idoit in jail………..and Impeach Obama for treason against the American people.

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- CatB
  Posted on September 13, 2012 at 1:20pm
  I agree .. this is working AGAINST the American Citizens and OUR country … time to put a stop to this cr*’p NOW!
  
  Report this comment
- oldasdirt
  Posted on September 13, 2012 at 2:02pm
  The Weimar Republic,get your wagons and wheelbarrows ready to carry cash to store for a loaf of bread. Impeach Obama now.
  
  Report this comment
Psychosis
Posted on September 13, 2012 at 12:59pm
this will turn out really bad

when interest rates start to go back to normal………….and they will , the payment of this debt will skyrocket

there is only one way to kick this can down the road …………..they WILL go after your 401k

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- Rothbardian_in_the_Cleve
  Posted on September 13, 2012 at 1:11pm
  The interest to service the national debt right now is around 450 Billion. That is about what China spends on national defense. Ironically we pay them interest. So our interest payment are paying for Chinese MiG’s. YAY!
  
  Anyway, just a slight move in interest rates would bring this to a Trillion quite easily. The only things the Fed fears are loss of reserve currency status…which is why we killed Gahdafi and rising interest rates. Everything else is just the problems of the little people.
  
  Report this comment
- SadButTrue
  Posted on September 13, 2012 at 2:46pm
  Too late! They already got that years ago. And all my friends, too! They’ll probably just sell our children…to private owners as opposed to the Family Court industry they already have sold out them to. You know, for their BEST INTERESTS (That line has worked so well as propaganda to the public, they probably won’t see any reason to change it). According to the Dems, they own us anyway. No, this isn’t slavery…who could think that!
  
  Report this comment
Rothbardian_in_the_Cleve
Posted on September 13, 2012 at 12:59pm
Few things.

A) Operation twist has been monetization for some time now. They buy on the short and sell on the long. However there isn’t equal supply of each. To keep the buy operations going they digitize money. This is expanding their (our) balance sheet with no meaningful way to get it off without disintermediation.

B) “If you expect a QE3 announcement tomorrow, you are WRONG. If QE3 were imminent, the stock market would be skyrocketing today. It is not.” Model82A1 September 11, 2012. Dumb@$$.

C) Some additional observations:
— FED says it will increase purchases if jobs don’t improve.
— It puts no end on MBS purchase program
— It will buy $40B MBS per month, indefinitely but $40B is not capped, can go higher. ENDLESS PRINTING. Go long on ink and paper.
— Going to maintain Zero interest rates to 2015? Japan lost decade anyone?

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- Mutiny
  Posted on September 13, 2012 at 1:13pm
  LOL, well any comment by Model is completely stupid and lacks all thought. Love it you blasted him on that. He will come on here and call us both names.
  
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- woodyee
  Posted on September 13, 2012 at 1:14pm
  Excellent observations (A and C) – the more you post, the more I admire!
  
  Excellent observation (B)…and funny recollection! LOL!
  
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- drs1969
  Posted on September 15, 2012 at 12:42am
  The Japs were just following Bernank’s advice!
  
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RJJinGadsden
Posted on September 13, 2012 at 12:59pm
Make sure you have your wheelbarrows handy. They are creating the new Weimar Republic.

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- rckirby
  Posted on September 13, 2012 at 7:13pm
  I not only have a wheelbarrow….I have the means to protect my wheelbarrow. Thank God above for enlightening our founders od our fundamental rights.
  
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- drs1969
  Posted on September 15, 2012 at 12:49am
  @ american vision
  It’ll last until all the Mortgage Backed Securites, which are practically worthless, are shuffled out of the banks into the Federal Reserve. I’m sure it’s several Trillion. Many years at this rate.
  
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watersRpeople
Posted on September 13, 2012 at 12:58pm
There’s gonna be a QE4 too….and so on.

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- theamericanvision
  Posted on September 13, 2012 at 2:18pm
  There doesn’t need to be. This was announced as, “open-ended”. This can go on for ever.
  
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Detroit paperboy
Posted on September 13, 2012 at 12:58pm
Add in energy and food to the inflation index and see where it really is……….by the way, those are pretty much the two main things a civilized society needs……….hey all you FOODSTAMPERS , how’s that hope and change stuff workin for ya ???? Vote this turd out ???? YES WE CAN ……….

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randy
Posted on September 13, 2012 at 12:58pm
Operation Twist? yeah Feds! Twist the screws a little deeper!

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- honor007
  Posted on September 13, 2012 at 1:18pm
  i thought the name was pretty crazy? It’s like they are mocking us.
  
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justangry
Posted on September 13, 2012 at 12:58pm
Blah, blah, blah… Why don’t they just say, “we’re trying to delay the inevitable collapse”?

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- Rothbardian_in_the_Cleve
  Posted on September 13, 2012 at 1:04pm
  Delay? Shoot Just, they are only making it bigger. Look at the ECB Drahgi “bazooka”. ECB buying sovereigns simply means that they are leveraging up on that mess. Fix it? Heck no, let’s double down. This thing is going to be biblical.
  
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- drs1969
  Posted on September 15, 2012 at 12:52am
  No Taxation without Representation!
  
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IMCHRISTIAN
Posted on September 13, 2012 at 12:58pm
God help us from the idiots in the White House.

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soybomb315
Posted on September 13, 2012 at 12:57pm
What if the FED creates the illusion of an expanding economy and helps get Obama re-elected….Will you finally support abolishing the FED?

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- soybomb315_II
  Posted on September 13, 2012 at 5:27pm
  ah, people around here dont like to accept THAT reality
  
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woodyee
Posted on September 13, 2012 at 12:56pm
The Fed is going nuts. This is the third time they attempt to buy down our debt, and they’ve proved twice (not that it hasn’t been proven historically) that it doesn’t work, yet they’ve opted to do it again; they’re kicking the “football of doom” into Romney’s term of office.

The “beloved” (eyes roll) Europeans are currently running TWO euro “rescues” at the same time, and the EU has asked it’s members to give up their banking sovereignty – it was reported on The Blaze yesterday.

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- Rothbardian_in_the_Cleve
  Posted on September 13, 2012 at 1:01pm
  It’s the 4th. QE1, QE2, Twist and now Twist Plus. There will be no more reveals though. Like I said before, the market is now fully addicted to fiat smack. They put no caps on anything now and essentially have said that they will monetize the long end of the curve for as much and as long as possible at a zero interest rate policy.
  
  They have forced the hand of the rest of the world to get oil off the dollar.
  
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- OutOfTheAether
  Posted on September 13, 2012 at 1:05pm
  If this doesn’t indicate that they KNOW they’re not getting re-elected, I don’t know what does. You’re right, they are shoving this into Romney’s court to deal with now. I’m really concerned what they’ll come up with in December. Lame-ducks can be really, really dangerous
  
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SquidVetOhio
Posted on September 13, 2012 at 12:55pm
We’re so screwed. We are not going to be able to afford bread soon.

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- Rothbardian_in_the_Cleve
  Posted on September 13, 2012 at 1:02pm
  C’mon squid, I’m sure our wages and real income will keep pace. Think positive. /sarc
  
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- CatB
  Posted on September 13, 2012 at 1:22pm
  Yea .. good thing there isn’t any inflation now .. oh wait they don’t count food and energy ??? WTF!
  
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usedCZARsalesman
Posted on September 13, 2012 at 12:55pm
I seem to remember about a dozen trolls, two days ago when this was first anounced on TheBlaze, calling Glenn and the rest of us “chicken little” and that QE3 wasn’t going to happen…I wonder if they’ll come back on here and apologize…holding my breath (sac)

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- OutOfTheAether
  Posted on September 13, 2012 at 12:59pm
  wouldn’t be holding your breath – you’ll keel over from asphyxiation before you’ll see any thing from those twits
  
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thibx
Posted on September 13, 2012 at 12:54pm
treason

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SITDOWNANDSHUTUP
Posted on September 13, 2012 at 12:53pm
Ah yes…….I think we can now officially call this the “Band-Aid Economy”.

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Gonzo
Posted on September 13, 2012 at 12:53pm
Time to buy stock in wheelbarrow manufacturing. Everyone will soon need one to carry their near worthless currency to the store for a loaf of bread.

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- RJJinGadsden
  Posted on September 13, 2012 at 1:00pm
  Sorry GONZO, I just stepped on your post above. We had the same idea.
  
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- Gonzo
  Posted on September 13, 2012 at 1:04pm
  R.J., that comment was copyrighted, you’ll be hearing from my lawyers! :-)
  
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- Dismayed Veteran
  Posted on September 13, 2012 at 1:08pm
  Buy plastics. EBT card use will grown and the government can monitor you at any time.
  
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Popp40
Posted on September 13, 2012 at 12:51pm
Why even bother anymore…..our elected officials do what they want and the Feds do as they please. They do not serve us the citizens…instead we are nothing but their servants now.

The don’t give a d@mn about us.

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Snowleopard {gallery of cat folks}
Posted on September 13, 2012 at 12:49pm
Its official – we are sunk without new leadership in the White House; this madness of Kenyesian economic insanity has to end.

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- Popp40
  Posted on September 13, 2012 at 1:05pm
  Yes it needs to end but good old Bernake and the Feds just handed Obama the election.
  
  Sad thing is these criminals will never pay for their crimes.
  
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- Mutiny
  Posted on September 13, 2012 at 1:10pm
  What exactly does Romney do that turn this around? He doesnt end the spending which means more borrowing/printing at the FED. I dont think we have till 2050 to balance the budget like in the radical Paul Ryan plan.
  
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