Inquiring minds are watching in horror the side-show known as The Federal Reserve. The NYTimes article, “Fed Leaves Rates Unchanged…” on finds that Bernanke and crew are about to monetize the debt:
The Federal Reserve on Tuesday left benchmark interest rates unchanged and announced no new steps to speed the plodding economic recovery, though it reaffirmed that it could start buying vast quantities of government debt if unemployment does not improve. Led by its chairman, Ben S. Bernanke, the Fed’s policy-setting committee postponed a pivotal decision on whether to begin a big new push to stimulate the economy by creating money and buying large amounts of Treasury securities, a strategy known as quantitative easing.
In its announcement, the Fed said it saw the pace of economic growth slowing, and little to no evidence that inflation would pose a problem in the near future, justifying a continuation of exceptionally low interest rates.
Get your wheelbarrow ready. This story has been written many times but always has a very sad ending.
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