R.I.P. Scout26
In an unprecedented and controversial move the Federal Reserve today announced the initiation of an open-ended round of Quantitative Easing (QE3) and extended the period for which it will keep rates between 0 and 1/4% to mid-2015.
Translating from Fed-Speak the purchase of mortgage-backed securities is Quantitative Easing. Unlike QE1 and QE2, no dollar amount or time-limit was placed on the program. The Fed essentially announced that it will be purchasing $40 billion in MBS per month until further notice. This is a monster, huge, gargantuan change from prior operations. QE1 "cost" $1.7 trillion. QE2 was half a trillion, give or take. The new plan isn't really QE3 because it's never scheduled to end. It is an entirely different, frightening animal.
The markets are up; but that doesn't mean what you think it means. Investors are not betting on stocks, they are betting against the dollar.
Dump, Dump, Dump yer dollers quickly while ya can...
Let's get physical, physicalI wanna get physicalLet's get into physical
Silver and gold are pretty out of reach for me. I'm putting it all in brass, copper, and lead.
Come on fixed rate mortgage, I can pay it off with cheap money later when they print themselves out of this lil mess.
But a burger will cost $20 and gas will be $15 a gallon.
I'm happy with my 5.45% right now, but I can evidently get as low as 3.375%. A couple of friends of mine just did. And if I want to go to a 20 or 15 year instead of a 30, I can get into the high 2's.They're paying ME to stay in my house at that rate. That's less than inflation by anybody's numbers.
You know the next step is to adjust the principal on home loans and student loans? Basically, index them against the value of hyperinflated dollars. We have to protect the banks (and screw you)
I'm happy with my 5.45% right now, but I can evidently get as low as 3.375%. A couple of friends of mine just did. And if I want to go to a 20 or 15 year instead of a 30, I can get into the high 2's.
Can they do that?I can see a lot of 'killdozer' episodes happening very frequently around the country if this came to pass.
I can't tell if the Fed and Obama are in cahoots here, or if the Bernanke is doing this on his own and Obama is just a useful idiot. But somebody is trying to destroy all the private wealth in this country, except maybe for the top small fraction who are both very rich and politically connected.
Can they cancel bond obligations of a bankrupt corporation, and then hand assets over to Unions instead, in flagrant violation of all bankruptcy law and precedent prior?Can they ban private ownership of precious metals?Can they ban alcohol production and consumption and trade?
Sure. If you let them, and you play by their rules.