119 votes

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.

Continue at MarketWatch

Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Ron Paul on Bloomberg

Ron Paul is on Bloomberg in 15 minutes.

On Fox Business as well

Interviewed by David Asmun.
Final question: Will you ever endorse Mitt Romney?
Dr. Paul's answer: Probably not.


I thought for sure they would have waited till the end of October or the end of the election. What fools.

“When a well-packaged web of lies has been sold gradually to the masses over generations, the truth will seem utterly preposterous and its speaker a raving lunatic.” – Dresden James

you have to consider

the Romney influence. Obama might be cozy with them too, but Romney is one of their own. This has got to be the two worst candidates in history.

- Grow Mushrooms at Home

I don't know

McCain vs Obama was pretty bad too. ;-)

I'm trying to remember the

I'm trying to remember the last time it wasn't pretty bad. lol

Good point

"Send in the clowns" :-P

They're playing offense this

They're playing offense this time.

We the People

Where the hell are "We the People?" Instead of the Federal Reserve buying $40billion PER MONTH (indefinitely) worth of mortgage-backed securities from the banks (to relieve them of these toxic assets) why doesn't the Federal Reserve just use that money to pay off EVERY single mortgage in the United States? Then those assets would not be toxic at all and people would be able to stay in their homes... I think $40 billion a month towards paying off people's mortgages is a WAY better investment than giving the damn money to the banks in return for toxic assets that THEY THEMSELVES created! WAKE THE HELL UP PEOPLE...

I can't believe there are not hundreds of thousands of people in the Streets of New York City forcing their way into the banks, demanding a public trial of these banking elite, and then sentencing them for the crimes they have committed... Treason. Collapsing the dollar is Treason and they should punished appropriately.

"Government is not reason; it is not eloquence. It is force. And force, like fire, is a dangerous servant and a fearful master." George Washington

Ignorant, Apathetic and Absent

They are ignorant. They are apathetic. They are absent from doing anything that can help. They have been educated by the public school system. They're too busy keeping up with the Kardashians to be able to keep up with the FED. They figure that as long as they can keep scraping by an existence than that'll be okay. These sheep are being fleeced and they don't give a damn.

At this point, I don't feel bad for the people who are going to suffer under the hyper inflation that's coming.

Why would they do this?

QE3 will only make the rich bankers even richer and have more control over the political system.


You answered your own question

Because they will make the rich bankers even richer. They will be able to continue their wars unimpeded. They will be able to keep their boot on the back of your neck and your face in the dirt like the peasant you are. You simply exist to provide them with more wealth.

best place/way to buy gold/silver?

Simple question, I'm sure you fellow paulers have the answer. :)

"If Tyranny and Oppression come to this land, it will be in the guise of fighting a foreign enemy." -- James Madison


Buy local with cash if possible.



Provident Metals is 10 times

Provident Metals is 10 times superior to Apmex.

Simple Facts and Plain Arguments
A common sense take on politics and current events.


Whoever has the tightest

Whoever has the tightest spread and is closest to spot is the best.

"Whoever has the tightest

"Whoever has the tightest spread and is closest to spot is the best."

Definitely not true. Counter party risks and your trust in the ability of the seller to deliver the goods is way more important then saving a dollar.

The most important rule in buying is, "Buy the seller.".

"Quod scripsi scripsi."

Counter-party risk is pretty

Counter-party risk is pretty low at the current time. I think that favors saving a buck. I don't even really like physical anymore though, I mainly buy the ETFs and options.

But at the same time I wouldn't buy physical off some fake ebay like jhmint.com Apmex is prob. safer.

I guess you agree with me

I guess you agree with me then, that lowest cost is not the most important factor as your previously stated. And just because you think counter party risk is low (and its not, example: MFGlobal), doesn't mean risk is getting worse every day.

As inflation increases, price of metals increases, desperation increases, the risk will grow exponentially. As gold passes $2,000, you will see more and more counterfeiting and people trying to scam others.

Eventually you will see a decoupling of the paper and physical markets as you won't be able to buy physical at paper rates. The paper markets are the biggest counter party risk of all. (Again, I refer to MFGlobal).

"Quod scripsi scripsi."

I don't see a SHTF type

I don't see a SHTF type scenario playing out anytime soon. "They" can keep this thing propped up a lot longer than most people realize. At least 20 years if not 50.

In the money options. Then

In the money options on GLD and SLV. Then take the huge profits from the options and buy physical from APMEX or a coin shop.

If you bought physical you are up about 9-10% from August. If you bought some in the money Jan 13' options you are up about 500%. See?

The ONLY reason central bankers care about employment is...

...because they need federal income tax dollars coming in to pay them their interest payments (on the national debt).

So when Bernanke sits there and cries about unemployment, THAT is what he means.

The government only has 3 ways to make its money, tax, borrow or PRINT.

Revenue from taxes is low now due to all the unemployment.

So they are resorting to the other 2 "tools" they have.

All the other fancy language the FED uses is just to confuse, confound and complicate things so we think they are so smart.

They want us to think it's all too complex to understand so as not to question them about anything.

But banking is is really very simple if you're doing it MORALLY.

It is only the IMMORAL fractional reserve banking which they have to "complicate" to keep getting away with it.

"We have allowed our nation to be over-taxed, over-regulated, and overrun by bureaucrats. The founders would be ashamed of us for what we are putting up with."
-Ron Paul

I don't think so. At max, 16%

I don't think so. At max, 16% of US debt is held by banks; the value is likely a lot lower. That is about 50 billion in interest payment/year; that is absolutely nothing.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

Gold and Silver have both

Gold and Silver have both jumped today.

Southern Agrarian

So when is the Ron Paul interview on Cavuto?

When is the Ron Paul response on ?

For Freedom!
The World is my country, all mankind is my brethren, to do good is my religion.

Bad for the USA

...but very good (at least today) for my stocks.

We all want progress, but if you're on the wrong road, progress means doing an about-turn and walking back to the right road; in that case, the man who turns back soonest is the most progressive.

-C. S. Lewis

U.S. notes is the anwser ..

" The Federal Reserve announced a third, large purchase of bonds on Thursday in an effort to bring down long-term interest rates and spur growth . "

I'm assuming these ' bonds ' are U.S. Bonds . Well folks , these U.S. Bonds printed up by the U.S. Treasury have absolutely NOTHING backing them up , like the Federal Reserve note ( dollars ) . So , why can't the U.S. Treasury print United States notes as a competing currency , BTW debt free , instead of buying more debt attached Federal Reserve notes ? America has done this time and time again with success ... Colonial Script , Continential notes and the not so long ago , Greenbacks , only for the foreign private banking cartel to bribe our public officials into scraping any competing U.S. currency ideas. Using a debt free U.S. dollar can payoff our current 16 trillion dollar debt in a few years , as long as we pay back the debt in interest-free U.S. notes , and not debt attached federal reserve notes .

I mean really , the U.S. Constitution states that the U.S. government is SUPPOSE to be in charge of managing it's own currency . The Federal Reserve Act of 1913 wasn't even radified by 2/3's of the states anyways... so why is this madness continuing ?

Is buying MSBs really

Is buying MSBs really considered QE? I doubt it... but close enough


Say goodbye to $28-30 silver.
Dang...all I bought was about 14 ounces.