PROVE IT WRONG OR PASS IT ON

PROVE IT WRONG OR PASS IT ON BannerFans.com

BE THIS GUY

BE THIS GUY
August Landmesser, Hamburg Shipyard Worker Who Refused To Make Nazi Salute

Friday, November 5, 2010

NEW YORK TIMES - $600 billion from FED.

Fed to Spend $600 Billion to Speed Up Recovery


Andrew Harrer/Bloomberg News
The Federal Reserve building in Washington.




WASHINGTON — The Federal Reserve, getting ahead of the battles that will dominate national politics over the next two years, moved Wednesday to jolt the economy into recovery with a bold but risky plan to pump $600 billion into the banking system.


A day earlier, Republicans swept to a majority in the House on an antideficit platform, virtually guaranteeing that they would clash with the Obama administration over the best way to nurture a fragile recovery.

The action was the second time in a year that the Fed had ventured into new territory as it struggles to push down long-term interest rates to encourage borrowing and economic growth. In a statement, the Fed said it was acting because the recovery was “disappointingly slow,” and it left the door open to even more purchases of government securities next year.
The Fed is an independent body, its policy decisions separated from the political pressures of the day. But it acted with a clear understanding that the United States, like many other Western countries, seems to have taken off the table many of the options governments traditionally use to give their economies a kick, particularly deficit spending.
The Republicans regained control of the House for the first time in four years in part by attacking the stimulus plan — begun by the Bush administration and accelerated byPresident Obama — as a symbol of government spinning out of control, contributing to a dangerously escalating national debt.
This political reality has left Washington increasingly reliant on the Fed to take action, though its chairman, Ben S. Bernanke, has said the Fed cannot fix the problem alone.
But in stepping in so aggressively, the Fed is taking risks. The action not only expands the Fed’s huge portfolio of Treasury bonds, it makes it a target of a Congress whose new members include some who are hostile to the Fed’s independent role.
On Wall Street, analysts said the move appeared to be a balancing act that met expectations and stock prices rose.
Ordinarily the Fed’s main tool for spurring economic growth is to lower short-term interest rates. But those rates are already near zero. With no more room to go, it has to find another route to stimulate demand.
That route is to buy government bonds, which increases demand for them and raises their prices, pushing long-term interest rates down. “Easier financial conditions will promote economic growth,” Mr. Bernanke predicted in an essay for Thursday’s Washington Post.
Representative Mike Pence of Indiana, the outgoing chairman of the House Republican Conference, said shortly after the announcement that the Fed was overstepping its bounds. “Diluting the value of the dollar by continually increasing the supply of money poses an incalculable risk,” he said. “Instead, Congress needs to embrace progrowth fiscal policies to stimulate our economy rather than masking our fundamental problems by artificially creating inflation.”
In making that argument, Mr. Pence and his allies are replaying a dispute that permeated Washington in the mid-1930s, when the economy was crawling out of the Great Depression. Conservative Democrats pushed Franklin D. Roosevelt to cut back on spending, and argued for tight monetary policy. Many economists argue that the result was a second downturn just before the outbreak of World War II, but others say the conditions today differ in so many ways that the comparison is misleading.
While the Fed step was telegraphed to the markets in recent weeks, most experts had expected $300 billion to $500 billion in purchases of  Treasury debt. Still, the pace — $75 billion a month for eight months — disappointed some investors.
The Fed said it would also continue an earlier program, announced in August, of using proceeds from its mortgage-related holdings to buy additional Treasury debt, at a rate of about $35 billion a month, or $250 billion to $300 billion by the end of June.
So in total, the Fed will buy $850 billion to $900 billion, just about doubling the amount of Treasury debt it currently holds.
If the Fed’s bet is right, lower long-term rates should ripple through the markets, pushing down rates for mortgages and corporate bonds. That could encourage homeowners to refinance into cheaper mortgages, though it would not help the millions of Americans facing foreclosure. It could push businesses to make investments instead of sitting on piles of cash.
In a sign of its willingness to do even more, the Federal Open Market Committee, the central bank’s policy arm, left open the possibility of even more purchases beyond June, saying it would “adjust the program as needed to best foster maximum employment and price stability.”
Only one committee member dissented, for reasons that are similar to the complaints that some Republicans are likely to raise. Thomas M. Hoenig, an economist who is president of the Federal Reserve Bank of Kansas City, said he believed the decision could create more risk for the financial system by enticing too much borrowing.
There are other risks, as well. The actions are likely to further drive down the dollar. That could worsen trade and exchange-rate tensions that have threatened to unravel cooperation among the world’s biggest economies.
Moreover, the Fed is exposing itself to the risk that the assets it has acquired could shrivel in value when interest rates eventually rise. That could reduce the amount of money the central bank turns over to the Treasury each year, and expose the Fed, already vulnerable for its failure to prevent the 2008 financial crisis, to even more criticism.
On Wednesday, the standoff between the parties was on display as the two sides argued over tax cuts and the desirability of government investment to create jobs.
It was this impending gridlock that might have pushed Mr. Bernanke to move, said Laurence H. Meyer, a former Fed governor. “Bernanke has said that fiscal stimulus, accommodated by the Fed, is the single most powerful action the government can take for lowering the unemployment rate, when short-term rates are already at zero,” Mr. Meyer said. “He has nearly pleaded with Congress for fiscal stimulus, but he can’t count on it.”
But Leonard J. Santow, an economic consultant, said he feared that the Fed was reacting to one mistake — the failure of fiscal policy — by adding another. “The main problem is on the fiscal side, and there is nothing wrong with the Fed chairman making budget recommendations and admitting there is not a great deal left for monetary policy to achieve when it comes to stimulating the economy,” he said.
One of the main questions raised by the Fed’s action was whether it had waited too long. While economists disagree on that, the Fed’s announcement completed a U-turn. Earlier, speculation was that the Fed would gradually raise interest rates and tighten the supply of credit, as it would normally do after a recession..
But this downturn and its painful aftermath have been anything but normal. Markets were set back in the spring by the European debt crisis. By late summer, as continuing high unemployment, slow growth and low inflation became clear, Mr. Bernanke became convinced that the Fed needed to act again.

For more information, do your own research on the Federal Reserve.

No comments:

ALL TIME - Most Popular Posts

Secrets Hidden In Plain Sight

Theory of EVERYTHING: GOD, Devils, Dimensions, Dragons, Illusion & Reali...

Loading...

A Lamp In The Dark - Enter The Jesuits

USE YOUR HEAD & OPEN YOUR EYES

USE YOUR HEAD & OPEN YOUR EYES
This is the truth...

Julian Assange

Julian Assange
"Courage is Contagious."

Milton William Cooper PREDICTED 9/11

Milton William  Cooper PREDICTED 9/11
CLICK PHOTO FOR MORE: Milton William Cooper. Naval Intelligence Officer, UFO believer and conspiracy intel expert. Shot and killed in the 3rd attempt on his life. He had only one leg from an earlier attempt. His life was conveniently taken less than a month after September 11th, 2001 after he predicted it and Osama Bin-Laden as the scapegoat. Bill Clinton called him "the most dangerous man on radio". His book "Behold a Pale Horse" proves he was on to something that got him murdered. He was a true American patriot and spoke truths of things he could prove, not rumors that he heard. His research is a valuable beginning to understanding that everything you have been taught is a lie, what you thought you knew, you don't know anything about.

It just takes one...

It just takes one...
ONE MAN WITH COURAGE IS A MAJORITY

Quotes:

"Do not fear your enemies, The worst they can do is kill you. Do not fear your friends, At worst, they may betray you. Fear those who do not care, They neither kill nor betray, but betrayal and murder exists because of their silent consent"

-Bruno Jasienski


If you're not confused, you're not paying attention.


-
Tom Peters



Good character is more to be praised than outstanding talent. Most talents are, to some extent, a gift. Good character, by contrast, is not given to us. We have to build it, piece by piece -- by thought, choice, courage, and determination.

-
H. Jackson Brown


This I believe: That the free, exploring mind of the individual human is the most valuable thing in the world. And this I would fight for: the freedom of the mind to take any direction it wishes, undirected. And this I must fight against: any idea, religion, or government which limits or destroys the individual.

-
John Steinbeck

‎"Those who would give up essential liberty to purchase temporary safety, deserve neither liberty or safety."

-Benjamin Franklin



Character is like a tree and reputation like a shadow. The shadow is what we think of it; the tree is the real thing.

-
Abraham Lincoln

"I don't want a nation of thinkers, I want a nation of workers."
- John D. Rockefeller, (1839-1937)


One who asks a question is a fool for five minutes; one who does not ask a question remains a fool forever.

- Chinese Proverb

Thanks for taking the time to read this.

Prove it wrong or pass it on..., DO SOMETHING.


IF VOTING REALLY CHANGED ANYTHING, IT WOULD ALREADY BE ILLEGAL.


“Most charities are public relations for the rich, a scam on the middle class, and a disservice to the poor.”

--NL

Put not your trust in the donkey or the elephant, but in the Lamb.

O-bamanation - WE ARE BUILDING A RELIGION

O-bamanation - WE ARE BUILDING A RELIGION
"Out of MANY, we are ONE." Is this the new "Messiah"? People are comparing Barack Obama to Jesus Christ

George Orwell's warning to us in 1984 coming true.

George Orwell's warning to us in 1984 coming true.
"One Nation, Under a New Obama Salute"

CLICK PICTURE FOR EYE OPENING VIDEO

CLICK PICTURE FOR EYE OPENING VIDEO
WE ARE BUILDING A RELIGION

9/11 Ripple Effect

SHEEP TASTE LIKE CHICKEN

SHEEP TASTE LIKE CHICKEN
Visit Search For Truth's TOP CONSPIRACY SITES

The NEVER ENDING War on Terrorism

The NEVER ENDING War on Terrorism
This means NEVER-ENDING FUNDING and ENDLESS ways to take your rights away from you, dissolve the U.S. Constitution and pillage other nations.

Federal Reserve Bandits

Federal Reserve Bandits

Herbert W. Armstrong

Herbert W. Armstrong
A Voice Crying Out in the Wilderness. Mr. Armstrong - Pioneer for the 20th Century Church of God, he began the modern day true teachings of Christ and spread the true Gospel, the same one Jesus taught- that of a World Tomorrow. He taught peace, love and a better way to live. His early revival of God's message, the true Sabbath, the annual Holy Days and the pagan teachings of Christianity in Christmas, Easter...etc., gave those preaching the Word of Jesus today a guideline for the Bible and the prophecies of troubling times ahead.

Think your vote counts? You're not paying attention!

Sir, YOU ARE A LIAR!

Welcome to a NEW WORLD ORDER.

You Ready For This?

Julian Assange interview - 60 Minutes

Esoteric Agenda (FULL LENGTH)

Comprehensive Look into the Myths Surrounding the Events of 9/11

From Evolutionist to Creationist - Walter Veith

From Evolutionist to Creationist - Walter Veith
This is the testimony of Walter Veith, a South African Professor of Biology. Walter Veith did not grow up as a Christian, but through a number of amazing encounters, he came to a knowledge of the reality of God, and how wonderful He is.

Hungry In America

Hungry In America
Hungry Children in America Bringing attention to the children living in poverty that go hungry in America. Encouraging charity — your support through the many choices available — such as making a donation, volunteerism, or sponsorship of a child in the US. Today, please help a child that is Hungry In America.

Banksy

Banksy

Enjoy the simplicity

Enjoy the simplicity
...OF THE TRUTH

Gas Prices Daily

The past present and future of America...and the world.

"Our rulers can have authority over such natural rights only as we have submitted to them. The rights of conscience we never submitted, we can not submit. I have ever thought religion a concern, purely between our God and our consciences, for which we were accountable to him and not to the priests. For it is in our lives and not from our words that our religion must be read. But this does not satisfy the priesthood. They must have a positive, a declared ascent to all their interested absurdities. My opinion is that there would never have been an infedel, if there had never been a priest."

-
Thomas Jefferson

Fascism in American Political Culture

Fascism in American Political Culture
Notice the two Fasci under each arm of President Lincoln. These Fasci (the universal sign of fascism) are everywhere if you look. They're on the back of a dime, on the walls of congress and here. WHY? I decided to find the real meaning behind it and found it terrifying. I hope you look into it for yourself and pass on what you learn. Etymology The term fascismo is derived from the Italian word fascio, which means "bundle" or group, and from the Latin word fasces. The fasces, which consisted of a bundle of rods that were tied around an axe, was an ancient Roman symbol of the authority of the civic magistrate. They were carried by his lictors and could be used for corporal and capital punishment at his command. The word fascismo also relates to political organizations in Italy known as fasci, groups similar to guilds or syndicates. The symbolism of the fasces suggested strength through unity: a single rod is easily broken, while the bundle is difficult to break. Similar symbols were developed by different fascist movements. For example the Falange symbol is a bunch of arrows joined together by a yoke.