Skip to comments.Bernanke: Fedís ability to support U.S. economy is limited
Posted on 12/12/2012 5:45:19 PM PST by Olog-hai
There are limits to how much aid the Federal Reserve can provide to the U.S. economy, Fed Chairman Ben Bernanke warned on Wednesday as he urged politicians to tackle a year-end fiscal cliff that could derail the countrys gradual recovery.
The U.S. central bank announced it would keep buying $85 billion of Treasury and mortgage-backed bonds a month until it saw a substantial improvement in the outlook for the labor market. Its balance sheet would increase to almost $4 trillion by the end of next year if it kept up that pace of purchases.
Critics of the central banks aggressive actions to engineer a quicker reduction in the level of U.S. unemployment charge that it risks stoking both future inflation and credit bubbles by massively expanding its balance sheet.
(Excerpt) Read more at reuters.com ...
Yeah, there are only so many trees to make paper.........
Can mix a great deal more ink than we can create more paper. We’ll just have to use the same paper, and use more ink on them... in the form of Ø’s (Øh, hØw apprØpriate)...
These days, more like “can’t create dollars without electrons and can’t make enough electrons without coal”
Then WHY KEEP DOING IT?????????????????
They don’t even need paper or ink any more. Numbers just magically appear on bank computer screens ........
They’ve been doing ok in keeping the house of cards up during the past 3 or 4 years. Never mind that when it finally goes down, it will do so spectacularly, thanks to the Fed.
Isn’t the Fed supporting the U.S. economy like shining a lightbult on a solar panel that’t charging a battery that’s running the lightbulb?
... and that lightbulb is controlled with a dimmer. As the lighbulb dims due to the solar panel not able to keep up with the discharging battery, we just dial the dimmer to make the bulb brighter.
Ben Bernanke is like a doctor in a hospice who finds it necessary to appear before the patients from time to time to lugubriously remind them that there’s nothing he can do to help them, they’re all going to die, but in the meantime he’ll do everything possible to make them comfortable by printing 85 billion dollars of new currency every month.
That’s a pretty good analogy, but not quite accurate. More like the Heroin dealer who keeps supplying a junkie while simulanteously reminding him that Heroin isn’t good for him.
>> Isnt the Fed supporting the U.S. economy like shining a lightbult on a solar panel thatt charging a battery thats running the lightbulb?
Yeah, basically, except that your lightbulb=>solarpanel=>battery=>lightbulb thingamajig is more efficient.
Can you imagine the mess the president is going to have in 2017. Yikes! Barry will be coolin’ his heels on a beach in Hawaii, eating an ice cream cone, counting his money and laughing is @$$ off at us. We’re the fools.
Sure, the Fed’s ability to aid the US economy is limited but there is no limit to the Fed’s ability to screw it up.
beat me to it and screw it up they did outside of their mandates...