Fed News Friday: The Federal Reserve’s New Platform
August 19th, 2011A recent discovery has shown that the Federal Reserve is having a little trouble coming up with some monetary solutions to keep the recession from worsening (keep rackin’ your brain folks, but until you grasp what inflation really means, I feel like we’ll be dancin around this forever!). Regardless of what deal Congress passed, we still have a debt disease that needs more than a few trillion pieces of paper to cure. We found a citizen who abstractly shared what they think should be the Fed’s platform moving forward.
(as a disclaimer and because of the recent tragedies in the planking world I'd like to say that we do not encourage dangerous planking nor do we endorse the act)
______________________________________________________________________________________________________________________________________
Keep an eye out next week for Bernanke’s address to Jackson Hole, Wyoming. Last year Jackson Hole was where Bernanke announced the $600 billion dollar QE2 deal which was welcomed by investors and even a small burst of confidence in such a shaky time. Most economists are not predicting another batch of bond buying (QE3), however they are the Fed and could come up with another euphemism for an inflationary program, and there wouldn’t be much we could say about it. Take that back, we could protest and say plenty… I just don’t think it would stop them.
The markets are bleeding. The DJIA dropped over 500 points in one day last week. A relative form of measurement can also be seen in the impressive gold performance in the past 2 weeks, flying past $1,800/oz while silver still holds onto a strong $40/oz with room to grow. To the big wigs, this means something needs to be done, which usually translates to…something needs to be printed. Although the likelihood of a QE3 is low, we should not discount the possibility. One voice is being strewn across the main stream media calling Bernanke “treasonous” if the Federal Reserve decides to print more money. This has shaken the game up a bit, even though we all know Rick Perry can not be the one we congratulate for such profound words.
Keep an eye out for the speech in Jackson Hole next week where we will either hear a fluffy way of saying the economy is up shit creek without a paddle or we’ll get slapped with some serious inflationary threats through another round of quantitative easing. All the while jobs disappear and prices rise.
Get your dose of Federal Reserve news every week HERE!
Posted by:
