QE4 Is Here: $85B/Month Until Unemployment Falls Below 6.5%

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kramer
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QE4 Is Here: $85B/Month Until Unemployment Falls Below 6.5%

Postby kramer » Sat Dec 15, 2012 3:34 pm

QE4 Is Here: Bernanke Delivers $85B-A-Month Until Unemployment Falls Below 6.5%

Ben Bernanke continues to make history at the Federal Reserve. On Wednesday, the FOMC announced more quantitative easing at a rate of $85 billion a month for an extended period of time. The Bernanke Fed has also modified its guidance, noting its ultra-accommodative stance will remain in place until the unemployment rate falls below 6.5% and inflation projections remain no more than half a percentage point above 2% two years out.

http://www.forbes.com/sites/afontevecch ... below-6-5/


So, if the economy starts to recover, aren't the roughly 4 million people who dropped out of the work force since 2000 when Clinton paid back communist China for their illegal contributions to him and the DNC, going to try and get back in the work force resulting in the unemployment rate not improving much? Sounds like a possible cluster&^#% of money printing for years to me.
At least if this happens, there won't be a QE5, 6, 7, or 8 or more.

And isn't QE4 a sign that there is weakness in the economy? It is:

The surprise move is meant to signal the Fed’s awareness of the softening economy; it sees the gritty numbers before we do.

http://www.forbes.com/sites/robertlenzn ... cal-cliff/


[Weren't we told in essence that all the other QE's were going to fix the economy? -- Hard to believe this idiot got elected to another 4 years with this economy. There must be more stupid people in America than I realized...]

And if anybody is worried that this may implode, don't worry. The fate of this "experiment" is in the hands of able economists, some from MIT:
Of late, these secret talks have focused on global economic troubles and the aggressive measures by central banks to manage their national economies. Since 2007, central banks have flooded the world financial system with more than $11 trillion. Faced with weak recoveries [so, keynesian economics really don't work???] and Europe's churning economic problems, the effort has accelerated. The biggest central banks plan to pump billions more into government bonds, mortgages and business loans.

Their monetary strategy isn't found in standard textbooks. The central bankers are, in effect, conducting a high-stakes experiment, drawing in part on academic work by some of the men who studied and taught at the Massachusetts Institute of Technology in the 1970s and 1980s.

http://online.wsj.com/article/SB1000142 ... 86598.html


Meanwhile, we've been fed a bunch of BS that globalization would create jobs for us and improve our economy. Looks like the opposite is happening to me.

The Civilian Labor Force Participation graph from the St. Louis Federal Reserve below shows the 4 million who dropped out (and notice, it starts right around the time we gave China PNTR):
Image

[And also note from the above graph that the rate of growth was slower under Clinton than under Reagan and it looks like it was even better from 1970 to 1980. Just an observation...]


“We should have been warned by the CFC/ozone affair because the corruption of science in that was so bad that something like 80% of the measurements being made during that time were either faked, or incompetently done.”

- Scientist James Lovelock

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