Federal Reserve to Launch New Bond-Buying Program (QE4?)
Submitted by PWA on Thu, 11/15/2012 - 15:14The Federal Reserve signaled Wednesday that it will likely announce a new bond buying program in December to try to spur job growth.
The purchases would be intended to lower long-term borrowing rates to encourage spending and strengthen the economy. The hope is that more hiring would follow.
Minutes of its Oct. 23-24 policy meeting suggest that the Fed will unveil a Treasury-buying plan to replace a program that expires at year's end. Under the existing program, called "Operation Twist," the Fed has been selling $45 billion a month in short-term Treasurys and using the proceeds to buy an equal amount of longer-term securities.
When Operation Twist ends, the Fed will run out of short-term investments to sell. The minutes show support among the Fed's policymakers to replace Twist with another program of long-term bond purchases.
http://www.cbsnews.com/8301-505123_162-57549867/fed-suggests...
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Like Ron said:
First it was QE1, and QE2, then it's QE3, then QE Forever....
Probably just an effot to keep the bond market bubble from
bursting now instead of later. Who else in his right mind would buy federal debt? What do you think would happen to the federal budget if market interest rates prevailed and they couldn't use low interest rates to rape the public.
Imagine how many pension plans are going belly up because they can't earn a market rate of interest. In addition to destroying the value of money, essentially the federal government and the FED are stealing your retirement benefits from you in order to keep the federal government alive for a few lousy more years before it collapses anyway under the weight of its debts.
And if they are keeping interest rates low to favor borrowers, isn't that a screw job for savers?
Maybe someone should awaken Madame Guillotine from her slumber.
Liberty isn't given to us; it is taken by us, and if not, we will not have it.