FED to print $ 600 BILLION dollars - Inflation begins

The Federal Reserve pledged on Wednesday to start a controversial new billion bond-buying spree to rescue the economy from its current doldrums.

The Fed said it would buy up to $600 billion in long-term Treasurys until the end of June 2011, about $75 billion this month, in a strategy called quantitative easing

This is the second time the Fed has engaged in quantitative easing, as it snapped up $1.7 trillion in mostly housing-related assets December 2008 and March 2010.


Federal Reserve Board Chairman Ben Bernanke testifying at a hearing in September.
The Fed’s new move comes because the central bank disappointed with the slow pace of growth and worried that the high 9.6% rate of unemployment might put enough downward pressure on inflation to tip the economy into deflation or a period of a sustained drop in prices.

The FED printing presses are getting ready to crank $600 BILLION and pumped into the markets.

Where will all of this money go?

I believe it will just sit in savings accounts. People & corporations are saving and paying down debt because they want to remain liquid and are uncertain about the future.

Another stimulus plan that won't work as intended.

Maybe we will just build one less aircraft carrier this year?

Vice Lord wrote: Maybe we will just build one less aircraft carrier this year?

or take over one less industry.

Vice Lord wrote: Maybe we will just build one less aircraft carrier this year?

Or maybe you need to do alittle research on how the funding is done for them. The one being built right now was procured over the period of a couple FY's. It pretty much has already been paid for. We just decommissioned a carrier last year and the one being built right now the "GERALD R. FORD", under construction at Newport News VA. The keel was laid back around a year ago. Almost all of the money was allocated from FY2005 on thru FY2009. That is how most of funding works now for the big projects in the military. So we are not building a new one starting this year. It was started last year. Estimated commissioning date is 2015

Get your facts straight

Vice Lord wrote: Maybe we will just build one less aircraft carrier this year?

That doesn't matter. Once they start printing more money to make up for all their mistakes, inflation will take off and interest rates will have to follow!

Just like in the late 70's...... Welcome Back Carter! Wait wasn't that a TV show?

It's going to suck when inflation starts to tick up (inflation only benefits government) and folks are still unemployed.

The coming inflation wave will be worse than Carter's.

Fed is now on a "dangerous path.

http://finance.yahoo.com/tech-ticker/bernanke-christens-qe2-fed-%22on-a-very-dangerous-path%22-axel-merk-says-535567.html?tickers=XLF,FAZ,TBT,TLT,UUP,UDN,GLD

Inflation used to be a handy trick of goverment to make up budget shortfalls, but people got smarter, with cost of living increases already written in and some debt sold in other currencies, inflation is no longer a lifesaver.

And inflation isn't certain, Japan took on crazy amounts of debt in the last 2 decdes but people just saved so inflation never developed there. Velocity of money, check it out.

SS109 wrote: Inflation used to be a handy trick of goverment to make up budget shortfalls, but people got smarter, with cost of living increases already written in and some debt sold in other currencies, inflation is no longer a lifesaver.

And inflation isn't certain, Japan took on crazy amounts of debt in the last 2 decdes but people just saved so inflation never developed there. Velocity of money, check it out.

If inflation happens in the US the velocity in the US will pick up. There is much consumer demand sitting on the bench. As soon as mamma realizes her toaster she was going to replace just saw a price increase, she's going to buy one immediately to hedge the increases. There are tons of dollars waiting to enter into the economy...both domestic and internationally. If the dollar continues to get killed we could see some massive dumping of the dollars into non-dollar US assets.

There is no doubt that China would like to trade some of their dollars for some American foreclosed homes. Banks got plenty of those assets sitting on their books.