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Old 09-18-2013, 11:16 PM   #1
senttoschool
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Default Fed Decides to keep Printing $85 billion/month

Fed has printed $1.02 trillion to buy bonds since August 2012.

Fed said today that the economy is too weak so they will keep printing $85 billion/month to buy bonds.

Because the economy has been so weak, investors responded by pushing Dow Jones to an all-time high.

So weak economy = all time high stocks

Make sense to everyone?
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Old 09-18-2013, 11:24 PM   #2
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The more you print the less they're worth.
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Old 09-18-2013, 11:25 PM   #3
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Sorry, meant to post this in the Politics forum. So mod, move this if you want.
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Old 09-18-2013, 11:40 PM   #4
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The sordid economics of the printing press.
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Old 09-18-2013, 11:41 PM   #5
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You can buy a heck of a lot of helicopters with 85 billion.
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Old 09-18-2013, 11:43 PM   #6
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I really wish they changed Politics and News to Politics and Economics.
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Old 09-19-2013, 12:02 AM   #7
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As long as it's helping my stock portfolio I'm good
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Old 09-19-2013, 12:18 AM   #8
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What would happen if we stopped printing money tomorrow?

Not one more dollar bill, except to replace existing currency. How long until everything would be in the shitter economically?

I don't think it would take a week.
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Old 09-19-2013, 12:23 AM   #9
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As long as it's helping my stock portfolio I'm good
just waiting for the eventual market correction once this pumping stops (I'm assuming it stops at some point)
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Old 09-19-2013, 12:24 AM   #10
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They need to raise interest rates.
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Old 09-19-2013, 12:24 AM   #11
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Quote:
Originally Posted by Via View Post
What would happen if we stopped printing money tomorrow?

Not one more dollar bill, except to replace existing currency. How long until everything would be in the shitter economically?

I don't think it would take a week.
The US wouldn't last another day without being the world's reserve currency. Though our military might wouldn't allow that to happen, capisce?

Last edited by bradley; 09-19-2013 at 12:26 AM.
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Old 09-19-2013, 06:35 AM   #12
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where can i get a printer like that??????
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Old 09-19-2013, 06:47 AM   #13
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Quote:
Originally Posted by senttoschool View Post
Fed has printed $1.02 trillion to buy bonds since August 2012.

Fed said today that the economy is too weak so they will keep printing $85 billion/month to buy bonds.

Because the economy has been so weak, investors responded by pushing Dow Jones to an all-time high.

So weak economy = all time high stocks

Make sense to everyone?
When it really gets scary is when you realize that we're buying our own debt.
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Old 09-19-2013, 07:32 AM   #14
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where can i get a printer like that??????
This!

I want access to one of the printers
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Old 09-19-2013, 07:53 AM   #15
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Makes prefect sense that stock market would increase. People who CAN make money WILL make as much money as they can before the bubble bursts.
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Old 09-19-2013, 08:12 AM   #16
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I was interested in that process, naturally the government has been creating money since it was founded otherwise the linitied amount of money in existance at the time would not have lasted very as a source to eliminate bartering, but never really read anything on how the amount of new money is periodically injected into the supply.
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Old 09-19-2013, 08:28 AM   #17
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As George Carlin would say. It's bunch of BS and in America you get the front seat!!!

It blows my mind that they still have control and power to do this without any much affiliation or guidance from US Government (which is probably not the best person to drive it anyways, based on their overspending sprees).

How much longer before the shit really hits the fan?
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Old 09-19-2013, 09:05 AM   #18
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I want to freaking punch the federal reserve and this administration in the face. I'm sick of watching the bubble inflate again. Especially housing. God forbid we have affordable housing.

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Old 09-19-2013, 09:21 AM   #19
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Quote:
Originally Posted by senttoschool View Post
So weak economy = all time high stocks

Make sense to everyone?

Fed Decision Batters Dollar

Quote:
"This sets up a situation where the dollar could end up in a protracted downtrend," said Shahab Jalinoos, currency strategist at UBS in Stamford, Conn. "This is unmitigated bad news for the dollar."
While my investments look good now, I won't realize any gains until after I sell my stocks at some future date.

If the dollars that I receive at that future date are worth less than the dollars that I spent to buy my stocks, then I haven't gained any value. Even if I have gained more dollars.

Uno
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Old 09-19-2013, 09:22 AM   #20
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I don't care.
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Old 09-19-2013, 09:28 AM   #21
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I don't care.
You love it!
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Old 09-19-2013, 09:32 AM   #22
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Quote:
Originally Posted by senttoschool View Post
Fed has printed $1.02 trillion to buy bonds since August 2012.

Fed said today that the economy is too weak so they will keep printing $85 billion/month to buy bonds.

Because the economy has been so weak, investors responded by pushing Dow Jones to an all-time high.

So weak economy = all time high stocks

Make sense to everyone?
Stocks have almost nothing to do with economic performance these days. What the bond buying does is provides the banks with liquidity that they're supposed to use to provide loans to businesses and stimulate broad economic activity. But that's only 4-5% yearly returns. Why do that when you can go out and put that money into the markets and get 10-15%?

In other words, the stock market is doing well because the Fed is basically pumping it. And Congress is also complicit because of the repeal of Glass-Steagal which re-allowed commercial and investment banks to merge operations.
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Old 09-19-2013, 09:33 AM   #23
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Quote:
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You love it!
What do I love and how much do I love it?
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Old 09-19-2013, 10:13 AM   #24
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Quote:
Originally Posted by bradley View Post
The US wouldn't last another day without being the world's reserve currency. Though our military might wouldn't allow that to happen, capisce?
BRICS is working on a replacement world currency. One that does not involve the US dollar.

As for the opening post, in other words, tax payers are buying junk debt real investors will not touch.
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Old 09-19-2013, 10:15 AM   #25
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What do I love and how much do I love it?
You love watching it burn.
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