Ben Bernanke Breaks Out QE3 Bazooka

September 13th, 2012 by invasive · 3 Comments · bernanke, breaking news

Bernanke Breaks Out Money Bazooka for QE3

Ben Bernanke has done exactly what the market expected him to do: he kick-started QE3. Get ready for a monetary onslaught courtesy of his trusty bazooka!

Why the bazooka? Well, that’s what people are calling it, as seen here and here. Any why not? The helicopter is only there to get Benny into position. The bazooka is the follow-through; the big guns!

The FED announced it was taking action to further dampen interest rates with its third round of quantitative easing. This time, QE3 will take the form of purchasing $40 billion in mortgage-backed securities a month until the labor market improves (i.e. indefinitiely).

Pedro Nicolaci da Costa, a reporter for Reuters, called Ben’s QE3 Bazooka a “very aggresive move.”

Operation Twist also remains in effect, at least until the end of the year. Through Operation Twist, the FED buys up long-term Treasuries while selling shorter-term issues. The idea is to keep the interest rates low, way past 2014.

So far today, the market likes it. DOW up 186.50 to 13,519. Gold up 32.9 to 1,766.60. We guess you should just buy anything not nailed down.

This also looks like good news for Obama going into November.

3 Comments so far ↓

  • mr3

    This one move tells me more about policy than any other during the entire crisis. We’re seeing signs of real recovery now, it’s just that it’s not *fast enough*. Hey chopper me into position, I’m gonna fire off my irony bazooka.

  • thedude

    This isn’t like Magic Johnson and AIDS. You can’t just throw money at something until it fixes itself. Private labor markets have improved for short-term or part-time positions. We need long-term solutions. I hate to say this as a Democrat, but sometimes we need to think like a Republican and stop being so short-sighted.

  • OLDE REB

    People do not understand Bernanke. Ben is doing a phenomenal great job. Ben’s job is not to save the economy; it is to save the banks (owners of the Fed — including the Rothschild family).

    He is the employee of the (unknown) cartel that owns the Board of Governors. The BOG is a privately owned corporation that claims to be a government agency. Privately owned corporations do not have to publish any accounting records or profits.

    If Ben did not infuse more money into circulation, the banks (owners) would have to devalue their assets to market value. They would be bankrupt. Ben is saving the banks by inflation. Temporarily.

    The BOG is currently making $4 billion EVERY DAY from the auctions of Treasury securities. That profit is hidden by the FRBNY’s exclusive handling of the auction accounts and distributed to the Primary Dealers (owners) disguised as purchases of securities being redeemed. There is NO PUBLIC information on the disbursements of the funds nor have they ever been audited. That money appears to lawfully belong to the government. If the funds from deficit spending securities went elsewhere, there would be no inflation nor any increase in the National Debt. For details, see FEDERAL RESERVE HEIST, http://www.scribd.com/doc/101937790 , an open letter to senators asking them to audit the Fed.

    Congress members receive great increases in personal wealth and campaign contributions by supporting the scam. Should we ask our senators to audit the auction accounts?

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