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| QE3 Just Went From 40 to 85 Billion USD Printed Per Month Posted by Dean Michael Gores on 12/12, 5:14pm | ||
| The Federal Reserve announced today that it will print an additional $45 billion USD per month to directly purchase long term US Treasuries (Federal Government Debt). They claim its purpose is to improve employment by increasing incentives to spend and borrow. They fail to mention that their actions directly take wealth from savers to non-earners. They fail to mention that the new money will be given to special interest groups like bankers, home builders, foreign nation "builders", and lazy people on unemployment, instead of allowing market participants to choose what they want to spend the money they earned on. $45 billion/month on treasuries, on top of $40 billion/month on home mortgages, that is $95 billion/month. The monetary base is currently 2,650 billion. $95 * 12 = $1140/year. An annual monetary base inflation rate of 43% per year. Note since 2008, the average annual monetary base inflation rate has been about 30% per year. Any estimates on how long the official CPI inflation will stay near 2.2%? | ||
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