Fed to buy up to $300B long-term Treasury bonds
Submitted by alwayssimon on Wed, 03/18/2009 - 14:45
WASHINGTON – The Federal Reserve announced Wednesday it will spend up to $300 billion over the next six months to buy long-term government bonds, a new step aimed at lifting the country out of recession by lowering rates on mortgages and other consumer debt.
At the same time, the Fed left a key short-term bank lending rate at a record low of between zero and 0.25 percent. Economists predict the Fed will hold the rate in that zone for the rest of this year and for most — if not all — of next year.
Fed purchases should boost Treasury prices and drive down their rates. That would ripple through and lower rates on other kinds of debt. The last time the Fed set out to influence long-term interest rates was during the 1960s with Operation Twist, conceived by the Kennedy administration.
Across the Atlantic, the Bank of England last week began buying government bonds from financial institutions as it turned to other ways to help revive Britain's moribund economy. The Bank of England, like the Fed, already had lowered its key interest rate to a record low of 0.5 percent.
Finance leaders from top economies have discussed coordinating actions from their governments and central banks to provide a more potent punch against the global financial crisis.
The Fed also said it will buy more mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac to help that battered market. The central bank will buy an additional $750 billion, bringing its total purchases of these securities to $1.25 trillion. It also will boost its purchase of Fannie and Freddie debt.
The rest of this article at: http://news.yahoo.com/s/ap/20090318/ap_on_bi_ge/fed_interest...
Another source
http://abcnews.go.com/Business/Story?id=7115149&page=2
Purer than Ivory soap
This is 100% inflation. Not even Ivory soap is this pure.
Article not found
when you click on the link
Looks
like the end of the fiat $.
Fellowship of the White Rose
Ron Paul was right
All money...
...is bullsh*t!
Bump
peace patriot*)
"(Better) to be confused in the search for truth than fully confident and sound asleep in a dream of lies." ~ Michael Nystrom
http://www.votenader.org/blog/2008/09/10/statement-to-ron-pa...
***********
my website -
http://www.libertypoet.com/
This is the equivilant of:
This is the equivilant of Lex Luther opening up the lead case of Kryptonite in Supermans Face!
For Freedom!
For Freedom!
Can anyone explain to me the
Can anyone explain to me the difference between t-bills and savings bonds? Is now a good time to be getting rid of savings bonds?
"The sinews of war are infinite money" ~ Cicero
"The sinews of war are infinite money" ~ Marcus Tullius Cicero
A T-bill is like a Federal
A T-bill is like a Federal Reserve Note that you cannot redeem until a specified date. T-bills have maturities of 1 year or less. Naturally, they sell at a discount to their face value.
Bonds are registered to a specific person, and have longer maturities. The Treasury is now selling 30 year bonds. Bonds pay interest.
A savings bond has a five-year maturity and is offered in small denominations to individuals. They can be redeemed early at a penalty-discount.
Different details, same
Different details, same animal. A loan to the government at a fixed interest rate.
= = = =
"Wunnerful, Wunnerful! Turn off the bubble machine!"
-Lawrence Welk (as satirized by Stan Freeberg.)
T-bills do not pay interest.
T-bills do not pay interest. If you have a T-bill with a face value of $10,000 it's good for $10,000 at maturity. Before that, it's worth whatever the market (including the Fed) happens to be paying at the moment.
T-Bills are international savings bonds in very large...
denominations.
If you have Savings bonds, check the date because they do reach full maturity when they stop collecting interest. If the dollar goes bust, you have nothing except pieces of paper, like dollar bills will be also worthless.
I cashed my bonds in and bought gold and silver. Think about if that is an option, but don't think too long. The time is short. Peace, but vigilance.
You can cash them before
You can cash them before they mature though, right? Thanks for the info!
"The sinews of war are infinite money" ~ Cicero
"The sinews of war are infinite money" ~ Marcus Tullius Cicero
you are right Steve...
you are right Steve... damnit Steve I wish you lived in Colorado..
"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson
I am more concerned about the return of my money than the return on my money. --Mark Twain
"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson
I am more concerned about the return of my money than the return on my money. --Mark Twain
SIERRA: I have been also thinking about a great alternative...
currency that maybe much better than gold or silver. What is it you ask? You already know the answer to that!....AMMO!!! Would you agree with that?
Copper + Tin = Brass.....Brass + S + C + K + Ph + O2 + Primer = A Full Metal Jacket! Time to load up on Ammo Pronto!! I'd prefer to trade (some) bullets than my PM.
Sierra where do you live in
Sierra where do you live in Colorado if you don't mind me asking? I was accepted to CSU Fort Collins for grad school, trying to decide if I should go there. Don't know much about the area, I've only been to boulder and Denver.
"The sinews of war are infinite money" ~ Cicero
"The sinews of war are infinite money" ~ Marcus Tullius Cicero
I live in Grand Junction, CO
I live in Grand Junction, CO and have some friends that went to school in Fort Collins. It seems like it is a cozy college town and within spitting distance of Denver which is a city I love to have fun at.
I am Ron Paul 2012!
This is their last shot
Does this means China is not buying? Wait for all that they hold to start washing to our shores.
This is a significant pivot
This is a significant pivot point in our economy. The first stage of the FED purchasing T-Bills will send inflation up and asset & wage prices down. Unfortunately, this is the inflationary depression that has been warned about.
It's a good time to be out of your bonds & t-bills.
I should
I should elaborate on my previous post.
Consumer prices will be forced up by inflation (food, consumer staples etc..). Asset prices such as Houses will continue to fall. Wages will also continue to fall because of the over supply of workers and the lack of work available.
This is truly the worst of both worlds.
so much for the optimists
so much for the optimists theories.. looks like all us highly uneducated, unelightened cut and paste morons are right.. hope you guys did not listen to jzneff.. this thing is going to get worse and worse.
"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson
I am more concerned about the return of my money than the return on my money. --Mark Twain
"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson
I am more concerned about the return of my money than the return on my money. --Mark Twain
not very Christian sierra!
not very Christian sierra! tsk tsk tsk! remember....humble.....humble....humble
not the point neo... the
not the point neo... the point is this.. you come here to educate your fellow countrymen in order for them to prepare so we can come out on the other side of the crisis ready to rebuild. When morons come on this site preaching the exact opposite of what Ron Paul teaches us I have a problem with that. hopefully not to many people listened to the stooges/trolls here.. you know, the ones who say they would not even be here if it were not for having to pay taxes and buying goods with depriciating dollars?? another words, as long as the idiot didn't have to pay taxes and his money kept value he would be glad to be a slave or live under socialism.. the name of the game is to get people prepared for the collapse. It is inevitable. Today will bring about the quickening of the process.. this summer will be the summer from hell. Looks like the BOTS got that right too! has nothing to do with being a Christian neo.. it is about hopefully getting families prepared for what is coming so our country will not be lost.
"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson
I am more concerned about the return of my money than the return on my money. --Mark Twain
"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson
I am more concerned about the return of my money than the return on my money. --Mark Twain
It IS the point sierra. You
It IS the point sierra. You attract more flies with honey than you do with vinegar bro. You know the whole....not what you say but HOW you say it....it DOES apply man. I know you want to have it your way and tell others you told them so but that just isn't very Christian. You do more pushing away than you do to help.
Look at Ron Paul or Jesus. They both stated their opinions clearly, concisely and HUMBLY. You will educate a LOT more people if you can just get around to comprehending that. Don't get me wrong man....I truly do admire your determination to warn others....but if it hasn't been made readily apparent many people take offense at the fashion in which you do it. There is no need to bash others and say I told you so. Everyone can see for themselves who was right and who was wrong. There is no need to promote yourself ;)
p.s. I sent you a mail a while back and never got a response. Did you get it?
Have to think this through completely.
Well it appears that the Fed has little choice. It wants to remove long-term government bonds with high interest rates from the market and issue FRNs which do not require interest payments. The question is if the FRNs will be spent. If they are held as were the long-term government bonds are now held then there will be no inflation. If they are spent, then inflation and hyper-inflation are likely.
I suggest to stay away from the stock market. It is a sucker's game. Buy supplies, goods and services from companies you want to grow. If the product is good they will sell and make a good profit, if not the company will fail. Easy money is a lie.
grant
As I write this Spot Gold is down below $900
But take a look at bulliondirect.com, a 1 oz. comex bar is still almost $1000.
Normally the sudden rise in the stock indexes and shorts hammering away at the Comex would provide a good buying opportunity, but not if the bullion dealers keep their prices up like there was no spot movement downward.
Hmm...
=======
"The consolidation of the states into one vast republic, sure to be aggressive abroad and despotic at home, will be the certain precursor of the ruin which has overwhelmed all those that have preceded it."
- Robert E. Lee, 1866
=======
"The consolidation of the states into one vast republic, sure to be aggressive abroad and despotic at home, will be the certain precursor of the ruin which has overwhelmed all those that have preceded it."
- Robert E. Lee, 1866
My chart of Mar 09 gold
My chart of Mar 09 gold futures is at $947.00
Gold dropped below 900 this morning and has shot up after the FEDS statement.
Out of ammo
This is going to get ugly very fast
Well, this is their last
Well, this is their last bullet. Interest rates @ zero and printing dollars to pay for government spending. This is truly the nail in the hyper inflationary coffin.
Stay classy DC.
Dollar plummits! Gold: +20dollar...
I live in Sweden and the dollar has gone like a rocket downwards after what the FED done a couple of minutes ago.
I think it is pretty close for you guys now :(.
~~
Teach a man to fish and you feed him for the rest of his life.
Teach a man to phish and he'll clean out your bank account.
~~
bah ha ha ha ha
http://quotes.ino.com/chart/?s=NYBOT_DX&t=f
sometimes you just have to laugh.
--------------------------------
"the only thing that keeps the banking system from failing is general ignorance about how the banking system works."
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lol E_....... those of us
lol E_....... those of us who are prepared can laugh.. those who are not will suffer. BIG TIME!
"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson
I am more concerned about the return of my money than the return on my money. --Mark Twain
"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson
I am more concerned about the return of my money than the return on my money. --Mark Twain
Translation for those who haven't kept up
This is basically direct injection of fiat dollars into our money supply, created out of thin air. No middle men, just the Fed punching some numbers into the computer and creating the money to the tune of trillions.
In essence, this is RAW INFLATION at work. It gets no worse.
http://federalfallacy.com
http://federalfallacy.com
Is this a good thing or a bad thing?
What does it mean for the impending crash? Will this stop it from happening?
Very BAD thing.
(As Henry said) this is straight printing of extra money for the government to spend, diluting everything denominated in dollars.
Market reaction:
- DJIA up 1.23%
- GLD up 3.39%
Which means the DJIA was REALLY down by 2.09% today but the money lost so much value it looked like the Dow was UP.
As The Joker said: "And ... here ... we ... go!"
= = = =
"Wunnerful, Wunnerful! Turn off the bubble machine!"
-Lawrence Welk (as satirized by Stan Freeberg.)
can you say ZIMBABWE?? sure
can you say ZIMBABWE?? sure I knew you could!
"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson
I am more concerned about the return of my money than the return on my money. --Mark Twain
"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson
I am more concerned about the return of my money than the return on my money. --Mark Twain
I suppose China has had enough of the soon to be worthless bonds
Understand that when the Fed buys US treasury bonds, it creates a checking account out of thin air for the US treasury and gets back treasury bonds in return. This is a direct expansion of the money supply.
Why?
Maybe the US government is out of money and can't borrow it elsewhere; maybe these stories of China worrying about not being paid back are true.
Or another possible reason is that the money supply growth is so slow that they fear further collapse of the economy. The rate of money supply growth recently has been falling, so one way to try to make up the lack of business activity is for government to borrow from the Fed and spend; of course they will never pay it back.
Effectively, you can figure that there goes more of your wealth to Washington, DC as they are taking your purchasing power by diluting the supply of money. Gold and silver immediately reacted to the up side, and the US dollar also fell against foreign paper currencies. The yield on 10 year treasuries immediately dropped from about 3% to 2.533%, a very large change.
The Fed said it will buy up
The Fed said it will buy up to $300 billion in long-term Treasury securities over the next six months.Doing so could help the economy because many kinds of debt _ from mortgages to corporate bonds _ are linked to Treasury rates. Fed purchases would boost Treasury prices and drive down their rates. That would ripple through and lower rates on other kinds of debt.
surety bond
Here ya go Truthy
http://market-ticker.denninger.net/archives/878-Caution-On-Q...
QE
so is the monetization of
so is the monetization of our own debt that Schiff and others have spoken about was coming?
yes it is neo... I hope you
yes it is neo... I hope you have gold and lots of silver.. you will need it.
"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson
I am more concerned about the return of my money than the return on my money. --Mark Twain
"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson
I am more concerned about the return of my money than the return on my money. --Mark Twain
What?!?!?!?
Do you mean to say that Schiff was right again?!?!?
.
I bet he has a field day with this.
.
.
At first splash of Eden we race down to the sea,
standing there on Freedom's Shore....
Aim small, miss small.
stick a fork in 'em
they're done.
__________
‘We have suffered more from this cause than from every other cause or calamity. It has killed more men, pervaded and corrupted the choicest interests of our country more, and done more injustice than even the arms and artifices of our enemy.’--Daniel Webster on paper currency
--------------------------------
"the only thing that keeps the banking system from failing is general ignorance about how the banking system works."
----------------------------
Well put...
you can hear the fat lady warming up.
.
.
.
.
.
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At first splash of Eden we race down to the sea,
standing there on Freedom's Shore....
Aim small, miss small.
Time to sell your $100.00 hammers...Uncle Sam is buying!
*
They're buying hammers and
They're buying hammers and sickles faster than Mitt Romney changes policies!