Central banker is really living up to his name in raining money down on us, Michael Snyder of Economic Collapse notes
You can't accuse Federal Reserve Chairman Ben Bernanke of not living up to his nickname.
Back in 2002, Bernanke delivered a speech entitled "Deflation: Making Sure 'It' Doesn't Happen Here" in which he referenced a statement by economist Milton Friedman about fighting deflation by dropping money from a helicopter.
Well, it might be time for a new nickname for Bernanke because what he did today was a lot more than drop money from a helicopter. Today the Federal Reserve announced that QE3 will begin on Friday, but it is going to be much different from QE1 and QE2. Both of those rounds of quantitative easing were of limited duration.
This time, the quantitative easing is going to be open-ended. The Fed is going to buy $40 billion worth of mortgage-backed securities per month until they have decided that the economy is in good enough shape to stop. For those that get confused by terms like "quantitative easing" and "mortgage-backed securities," what the Federal Reserve is essentially saying is this: "We're going to print a bunch of money and buy stuff for as long as we feel it is necessary." In addition, the Federal Reserve has promised to keep interest rates at ultra-low levels all the way through mid-2015.
The course that the Federal Reserve has set us on is utter insanity. Ben Bernanke can rain money down on us all he wants, but it is not going to do much at all to help the real economy. However, it will definitely hasten the destruction of the U.S. dollar.
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