New and Improved! Inflation-free Inflation, from the Federal ReserveSubmitted by Michael Nystrom on Thu, 03/08/2012 - 12:03
From the if you can't dazzle them with brilliance, baffle them with bullsh*t department:
WASHINGTON (MarketWatch) — Federal Reserve officials are considering a new type of quantitative easing that will attempt to boost the economy without accelerating inflation, according to a report published Wednesday.
Analysts said the new approach would allow the Fed to move despite high oil prices.
Under the new approach, the Fed would print new money to buy long-term mortgage or Treasury bonds but effectively tie up that money by borrowing it back for short periods at low rates, according to a story in The Wall Street Journal.
This “sterilized” quantitative easing, would use reverse-repurchase agreements to keep the money from flowing to bank reserves...
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