Fed’s Lockhart: Quantitative Easing Must Be Big!
- QE 2.0 is a foregone conclusion. The amount cited by Bob Chapman, which I believe is closer to the truth, is US$2.5T for the coming fiscal year. The FedRes as already monetized something like US$1.3T on toxic MBS, agency debts/derivatives and on top of that has bought in excess of US$300B in treasuries. The FedRes is already quietly buying up more treasuries as China and foreign countries step on the brakes in their bond purchases.
- If QE is really the solution, the FedRes should go the whole hog and print US$1M for every man, woman, child and their dog. They should abolish all taxes and dissolve all debts by QE. Helicopter Ben Bernanke has said the ultimate heresy: His job as central bankster is to stimulate inflation! The USD is toast and with it all major currencies. The Eurozone and Japan have intractable debt problems too. They will never be paid back.
Fed’s Lockhart: Quantitative easing must be big
WASHINGTON (Reuters) – Atlanta Federal Reserve Bank President Dennis Lockhart said on Tuesday that further easing by the Fed has to be large enough to help boost demand, and purchases of $100 billion of securities a month would be a possibility.
“If we’re going to pursue another round of quantitative easing, it has to be a large enough number to make a difference,” Lockhart said in an interview on CNBC. “As a monthly number ($100 billion) is fairly consistent with what we did before, and so I think it would certainly be in the range of numbers one might consider … but if you were talking about $100 billion as simply the overall program, I think that’s too small,” he said.
Most analysts expect the Fed to announce another round of large-scale asset purchases at its next policy meeting scheduled for November 2-3, and expect buying of around $500 billion overall. Lockhart said he is leaning toward providing further help to the weak recovery.
“I think the risks associated with it are acceptable,” he said. “Quantitative easing will help improve a recovery that is going very slowly and improve the trajectory of the economy overall.”
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