Federal Reserve

The Fed has announced its latest plan to loot Americans into destitution.

"The Federal Reserve unleashed a series of bold and open-ended steps Thursday to stimulate the economy by making it cheaper for consumers and businesses to borrow and spend.

The Fed said it will spend $40 billion a month to buy mortgage bonds for as long as it deems necessary to make home buying more affordable. It plans to keep short-term interest rates at record lows through mid-2015 — six months longer than previously planned. And it’s ready to take other unconventional steps if job growth doesn’t pick up.

A statement from the Fed’s policy committee said it thinks ‘‘a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the economic recovery strengthens.’’"

The Fed says it will continue this policy until the economy turns around, but counterfeiting $40 billion a month can never turn the economy around, it can only make the economy worse, so this program will never end as long as Bernanke runs the Fed. This would be an argument for voting for Romney, because Romney has promised to replace Bernanke, but Romney can't be trusted. Even if he does replace Bernanke, since he's in the pocket of the big bankers, he'll replace him with somebody as bad or worse.

Here's a quick analysis:

"The effect of this will be:
1. Even less saving going on than is happening now. Why do the lending institutions need more liquidity? Because they are no real life loanable funds in the first place. No one is putting money in depository, institutions, for example, because interest rates are at rock-bottom levels, but also because people have no excess money to save. So, the Fed is creating fake loanable funds through the purchase of the MBSs. Much of this will probably be newly-created money.
2. It will maintain the focus on consumer spending rather than investment. The idea is to keep people spending on real estate. Thus, less will be spent on business investment.
3. People will incur more debt. "

Our rulers get richer. We get poorer.