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Fed Launches QE3

WASHINGTON (MarketWatch) — The Federal Reserve, worried that improvement in the unemployment rate has stalled, announced a third, large purchase of bonds on Thursday in an effort to bring down long-term interest rates and spur growth.

The Fed said it would buy mortgage-backed securities at a pace of $40 billion per month.

The Federal Open Market Committee, which ended a two-day meeting on Thursday, said it was concerned that, without the action, “economic growth might not be strong enough to generate sustained improvement in labor market conditions.”Read text of statement.


Federal Reserve decision due 12:30 p.m. Thursday, followed by press conference

WASHINGTON (MarketWatch) — Fed watchers have little doubt the central bank is getting ready to launch what’s commonly called “QE3,” or a new large-scale asset purchase plan, but many think the countdown will be placed on hold until later this year.

“We don’t think the most likely outcome [in September] is going to be the announcement of another large scale asset-purchase plan. I am not convinced they are ready for it,” said Lewis Alexander, chief U.S. economist at Nomura Holdings.

“FOMC members continue to struggle with the appropriate structure for a future QE,” agreed Ward McCarthy, chief financial economist at Jefferies.

If this is the case, analysts said, headlines from the two-day meeting that ends Thursday will come from a less-aggressive step of altering language on a low-rate pledge. This will likely be extended until mid-2015. The current Fed pledge is to keep rates at “exceptionally low levels” through at least late 2014.

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Silver and Gold up a lot this

Silver and Gold up a lot this morning. Was there a big market announcement?

Southern Agrarian

The best way to understand

The best way to understand QE3 is that the private bank called the Federal reserve is creating digital credit and giving it to other banks at the expensive of you and me. The cover story is that the banks are supposed to use that money to create loans to spur the economy. Don't believe it. The banks have plenty of cash on hand if they wanted to loan money.

The money given to the banks comes from nowhere. It is money without a claim. No energy or labor created that money. The first recipients of that money are able to take advantage of it's full purchasing power. As that money works it way into the system it becomes worth less and less.. until eventually it lost most of it's purchasing power, at which time it is in the hands of the serfs.

A gold standard is not the answer. Gold is supposed to keep the fed from creating too much money. The problem is history proves that when governments want to create more money the limited amount of gold did not stop them. They simply passed new laws allowing them to rise the reserve ratio between currency and gold.. the end result being the same as the current situation.
I know it's difficult for Ron Paul supporters to accept this but it's the truth.

A gold system is not going to change things in a corrupt world.. What's going to change things is to get the rodents out of government/banking and to replace them with people of high character. It's the corruption. It's the criminals. It's the lobbying groups. It's not fiat that's the problem. Fiat could work just as well as gold or anything else. You don't need a gold standard to limit money printing.You need high minded moral people in the right positions and You need laws enforced.

Our whole problem, The worlds problems are the cause of criminal actions and unenforced laws. Guns don't kill people, people do. Fiat does'nt harm people, bankers do.

Watch this

Peter Schiff about the Fed QE

just remember, when the

just remember, when the entire scheme unfolds and the monetary system collapses, it's because there wasn't *enough* market intervention.

i'm not advocating it, but just telling you what will be said.

We need to hold these Feds accountable!

They are destroying the Dollar in order to hide their failures.

Who made the decisions to do this? Their names need to be recorded and then WE need to knock on their doors and let them know that we know who they are.

Once the Dollar ends up like the 1930's German Mark, we need to knock on their doors again.

Is it "Rape" if you just keep taking it and stay silent? We at least have to say "NO!"

Ron Paul: "Country Should Panic Over Fed's Decision"


Can we embed the Ron Paul clips here, as Zero Hedge has done?

Take back the GOP and Restore America Now.


We're saved! Come on everybody, do the dance with me! Yay! Our troubles are over, because that nasty stretch of time BETWEEN QE2 and QE3 is going bye-bye. It gone for good and the economy will be just fine from now on. Dayum, that Bernanke really knows how to liven things up!

Keimh3reg Peh2u Meg

I saw on the Houston

I saw on the Houston Chronicle posting of this story an Obama lover saying how great this is for investors and the economy and the Republicans are just mad because they don't want the economy to recover under Obama.

I slapped my forehead.

Southern Agrarian

Fed Launches QE3

in other words, the Fed officially declared our default today.

"Endless money forms the sinews of war." - Cicero, www.freedomshift.blogspot.com

The US will never default

The US will never default because of four reasons. The first is because the US dollar is the world's reserve currency and can be created out of thin air. Second, the United States is used as a proxy by the cabal to do their dirty work. Third, the US has the largest number of Nuclear weapons on the planet in which to threaten the rest of the world into excepting dollars. Fourth, Israel uses their Samson option to make sure the United states does all of the above.

The dollar may indeed collapse one day but it will be by design.. in order to bring about a new currency backed by........ GOLD......HURRY!!!!!

The same criminals running the fiat system will be running the gold system and the poor serfs believe this is a good thing!

a dollar collapse is a

a dollar collapse is a default...

Ah no it's not! A currency

Ah no it's not! A currency collapse is when a currency becomes worthless. A default is when you can't meet a payment obligation.

So who does the fed buy these

So who does the fed buy these mbs packages from? Fannie? If so, how would Fannie benefit? By freeing up their books for future investments? If banks are already getting free money and interest rates are already low, why would an investor be affected by the fed purchasing these mbs packages? If interest rates are promised to be low for years to come, what is the hurry to invest money?

Cyril's picture

It's not just about the absolute value of interest rates

It's not just about the absolute value of interest rates at any given specific point in time.

The SCAM is also, and mostly, actually, about large time-dependent money FLOWS :

those who get the money in their hands first, time-wise, are the same who profit the most ... by the very debasing of money done by design.

Fed's "money" printed out of thin air -> Banks + Gov't

-> Corporations + Insiders

-> Stock Speculators

-> Captive Markets

(-> insert more regulations here)

-> People

Ron Paul debunked this pattern in many speeches and even ... during campaign debates on TV for all to see and hear, while nobody would really pay attention (or care).

By the time you've reached the (unlucky) target of the 5th or 6th arrow, the ACTUAL value of money (in terms of tangible assets, durable or not, or services provided, that are convertible from it) can drop in two digits percentages in just a matter of years within the same decade.

Then, place it in the perspective of a context of amounts in the billions (X times $1,000,000,000) and not just a couple bucks in your pocket... The first couple arrows are much luckier in the plans timeline, don't you think ?

After that, one can re-read carefully this non-inconspicuous confessional quote ("they" don't even bother hiding, because few of us, the people, have any clues about what IT DOES MEAN, anyway) and my bold emphasis of the most interesting English phrases :


"[...]Fractional reserve banking allows people to invest their money, without losing the ability to use it on demand. Since most people do not need to use all their money all the time, banks lend out that money, to generate profit for themselves. Thus, banks can act as financial intermediaries — facilitating the investment of savers' funds. Full reserve banking, on the other hand, does not allow any money in such demand deposits to be invested (since all of the money would be locked up in reserves) and less liquid investments (such as stocks, bonds and time deposits) lock up a lender's money for a time, making it unavailable for the lender to use.
According to mainstream economic theory, regulated fractional-reserve banking also benefits the economy by providing regulators with powerful tools for manipulating the money supply and interest rates, which many see as essential to a healthy economy[...]

Now, guess WHO are the ones in the bold phrases.

Mainstream economic "theories" ?
Regulators ?
Powerful "tools" ?
Which "many see" ?

Oh ... Really ?

Should we be surprised that "they" may happen to be THE VERY SAME people at work, there, precisely ?

If so : what does this tell us, by not even extrapolating that much ?

Makes sense already, or does it require more extensive semantic skills ? If one asks me ... this speaks A LOT, already.


"Cyril" pronounced "see real". I code stuff.


"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Thanks for sharing this

I need to save this one.

Keimh3reg Peh2u Meg

Think of it this way. The Fed

Think of it this way. The Fed is privately owned. It is motivated to make a profit. It does so by loaning money which it creates by printing up dollars our of paper and ink. It loans the money to the Treasury which gives it bonds which have to pay interest and then repay the loan.

Is it any wonder that the Fed is willing to create and loan hundreds of billions of dollars to the govt?
Is it any wonder that the Fed is willing to create and loan trillions of dollars to the Treasury?

ALthough the national debt is officially 16 trillion it does not count the unfunded promises the Congress has made to pay for the bills or entitlements of retired people for Medicare and Social Security. About ten thousand people are added to the rolls every day as they retire or reach 65 or whatever age it is now.

So the real debt is more like 70 trillion or 200 trillion or 400 trillion over ten years. In order to pay it the taxes have to go up and more money has to be borrowed which means going deeper into debt.

Ultimately there will be a default or so much money will be created that it will become as worthless as a Continental, which is where we started.

Consider converting some of your cash into precious metals, not the numismatic stuff rather the bullion type coins or bars. Check out the American Precious Metals Exchange at www.APMEX.com SIlver is much cheaper than gold and is likely to outperform gold which is quite expensive now. Silver has many industrial uses and is money as well.

If you are planning on traveling or leaving the country or the state gold is easier to carry as it is more precious and less bulky for the same amount of dollars.

No Man's need constitutes an obligation on the part of another man to fulfill that need.

What you should understand is

What you should understand is that the rise in precious metals is not in spite of the FED..it's part of the Fed's plan. The cabal is controlling/allowing a controlled rise in prices in advance of a return to "hard money". Yeah!!

It does'nt seem to bother Ron Paul or the other hard money promoters that the same criminals running the fiat system will also be running the gold standard. It also does'nt seem to matter to Paul and some of his supporter (of which I am one but rethinking my support)that the central planners running things are the same criminals who own all the gold and who will benefit from a "gold standard" and the rise in prices. It makes you want to scratch your head.
It's actually easy to understand. Over the last 60 years the criminals used the fiat system to trade worthless paper for real tangible assets like gold and land, oil etc. Now that they bought up all the gold (Banks Governments and Institutions are by far the largest gold owners) they are going to use it to further consolidate their power.
If you want to buy silver/Gold, don't do it because you think you are fighting the man....and winning. You're not. Do it because you are aware of the script. Do it because the prices are likely to keep on rising because the man planned it that way. The only question you should be concerned about is when to get out.

partially right.. mostly

partially right.. mostly wrong.

Great rebuttal! Detailed

Great rebuttal!

Detailed and precise showing an understanding of the issue that only a very few people possess! Sure, someone may be inclined to call you a D i p s h i t based on your ridiculous response,but not me!

BTW, feel free to expand on your theories.. you know the ones about me being mostly wrong but partially right. Like which parts are wrong dewd and which parts are right?

Well PeggyPoo (almost called you PoopyPeg, don't know why)

Ron Paul is not advocating a gold standard. This is a myth. He advocates competition in currencies. Competition in currencies decreases the value of gold in terms of dollars because it forces fiat currencies to either compete or to fail. That is why the moneychangers are scared of him. Their gold will have to be put to better use, like actually paying people. In a free market, commodity-backed currencies will outperform and the top commodit(y/ies) would serve as a de facto standard. Historically this has been gold and silver, but in theory, it could be anything.

I will reserve judgement for now, but you are really sounding like a greenbacker. Freaking out about the gold standard bogey-man and dissing Ron Paul are two of the three main things to look for. THe third, which you have not (yet) displayed, is an intolerance of any kind of interest, usually based on a gross misinterpretation of a passage in the Bible.

Keimh3reg Peh2u Meg

You're silly and wrong. The

You're silly and wrong. The only thing mythical is your understanding of the issue. To say that Ron Paul is not advocating a gold standard is bizarre. Refer to CNBC's “Closing Bell” with Ron Paul on Friday Aug 24. His comments could not be any clearer. Refer to his speech in 2012 in Iowa where he advocates a gold standard. Refer to this video in 1983 http://www.youtube.com/watch?v or this one in 2009: http://www.youtube.com/watch?v. What else do you want? Is four references not enough to convince you? Would ten references be enough?

Ron Paul does not use the terms Sound money and Hard money without referring to a currency backed by Gold/silver. That's the whole point to those words. The fact that he wants competitive currencies does not mean he does not want a reserve of gold backing the currency.

The money changers are not afraid of Ron Paul. Ron Paul does not talk about fractional reserve banking. He talks about the treasury printing money as if it's real and needs to be paid back to the fed. Perhaps he feels that he can't talk about it.. I'm no sure. A Gold standard is around the corner and it's because the money changers want one.

Your other silly comments about usury etc, do not deserve a response.

When money is printed does it

When money is printed does it go directly to banks for free to issue loans?

The banks simply deposit the new money back in their Fed account

There, it counts as "reserves" so they can further leverage, engage in additional risky gambling.

Take back the GOP and Restore America Now.

Sir Andrew, In this case the

Sir Andrew,

In this case the Fed is buying mortgage backed securities so the new money goes to whomever owns or holds those.

One good source of information on the details of the operations of the Fed would be G. Edward Griffin's meticulously researched The Creature From Jekyll Island which reviews the history of central banking in America going back to the creation of the Continentals which were used to pay the troops who fought the British as early as 1775.

Griffin goes into detail at every stage of the struggle to end the national banks under Jefferson and Jackson but suggests you can read the first and last pages of each chapter if you want and then the chapters for more detail.

The most revealing aspect is the creation of the current Federal Reserve System by J.P. Morgan and his banker friends at a secret meeting at his duck lodge off the coast of Georgia in 1910 where they wrote the Federal Reserve Act of 1913 which became law signed by Woodrow Wilson who lived to regret it when he realized what he had done.

It is hard to find a small number of books to recommend to someone new to the pro freedom movement but this makes my list. As does Ayn Rands Atlas Shrugged and her newsletter The Objectivist Newsletter and Tom Wood's Nullification.

No Man's need constitutes an obligation on the part of another man to fulfill that need.


buy gov T-bills and money goes to government for wars, welfare, affirmative-action programs, trade union perks, subsidies, grants, etc.

FR can additionally lend money to banks so they can increase their reserve standing in a ratio of 1:9+ (for each dollar borrowed, bank can lend $9+ to business/public.)

Finally, NY FED's "discount window" outlet can give loans to prime member banks (domestic & foreign) who participate in redistributing T-bills to reluctant public via their investment portfolios.


Well, I've noted inflation in the supermarket of over 10% for most packaged food items (frozen pizzas, beer, frozen lasagna, frozen veges, etc.) during the last year, when the Fed supposedly was holding its own and not aggressively printing money (ha).

So I guess this means we'll have inflation exceeding 20% in 2013 in the grocery stores, gas station, electric/utility bills, and oh yeah, health care.

That means Bernanke will have to buy just enough MBS to allow housing to decline by a comparable $ amount (probably right around 20%).

Meanwhile, he will surely continue to raid silver/gold on a regular basis.

There is nowhere to invest, really. But I like silver/gold physical for a long-term play.

QE reminds me

of a snake devouring its tail. To carry the analogy further, the politically connected rich are the head of the snake devouring the body Us. The head of the snake sees nothing wrong until after it devours its body that it then realizes too late it committed self-suicide.

That's the power of hubris and the seduction of power. To think one can get away breaking essential economic and currency to enrich themselves at the expense of others with no fatal consequences.

Conscience does not exist if not exercised

"No matter how cynical you get, it's impossible to keep up!
---Lily Tomlin

Ron Paul got Interview

“It should not surprise anybody, but it is still astounding. To me, it is so astounding that it does not collapse the markets. [Bernanke] said, ‘We are in very big trouble. We are going to do something unprecedented and we believe it will not hurt the dollar.’ And yet the stocks, they say ‘we love this stuff.’ But the dollar didn’t do so well today and the real value of the dollar is measured against gold, and gold skyrocketed from its very low to its highest. It means we are weakening the dollar. We are trying to liquidate our debt through inflation. The consequence of what the Fed is doing is a lot more than just CPI. It has to do with malinvestment and people doing the wrong things at the wrong time. Believe me, there is plenty of that. The one thing that Bernanke has not achieved and it frustrates him, I can tell—is he gets no economic growth. He doesn’t do anything with the unemployment numbers. I think the country should have panicked over what the Fed is saying that we have lost control and the only thing we have left is massively creating new money out of thin air, which has not worked before, and is not going to work this time.”


"When the people fear the government, there is tyranny. When the government fears the people, there is liberty."

Cyril's picture

I have really no idea

Thanks for sharing this.

I have really no idea what else anyone could add to this assessment.

But just in other words maybe :

it's like heading full speed, head first, right towards the center of the brick wall and expecting not to get hurt.

Time will tell who will cry and yell the loudest.


"Cyril" pronounced "see real". I code stuff.


"To study and not think is a waste. To think and not study is dangerous." -- Confucius


When stealing a Brink's truck, throw all the money out of it first. It will get better fuel mileage.

Our currency will soon be suitable for training puppies, lining bird cages, and will make great paper dolls.