[QE3]Fed Pulls Trigger, to Buy Mortgages in Effort to Lower Rates

[Psalm 51:17]

9/13/12

The Federal Reserve fulfilled expectations of more stimulus for the faltering economy, taking aim now at driving down mortgage rates.
 

The Fed said it will buy $40 billion of mortgages per month in an attempt to foster a nascent recovery in the real estate market.

"The Committee is concerned that, without further policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions," the Open Market Committee said in a statement.
 
With a summertime rally pinned on hopes for aggressive central bank intervention - both in the U.S. and Europe - the Fed instead split the difference Thursday, offering a quantitative easing program the aggressiveness of which will depend on the strength of the recovery.

[ More From CNBC: The Biggest Holders of US Government Debt ]
 
The stock market, which had been slightly positive prior to the decision, shortly after 12:30 p.m., advanced while bond yields edged lower.
 
Faced with an unemployment rate stubbornly above 8 percent and other indicators showing only halting signs of recovery, the Fed was pressed into action by a market worried that the nascent recovery was on wobbly ground and needed more stimulus.
 
Two previous rounds of QE had uneven effects on economic growth though they did manage to levitate stock prices by more than 100 percent from their March 2009 lows.
 
In the latest version of the program, the Fed will buy assets - primarily Treasurys and mortgage debt - at a set level each month then monitor the effects.
 

Though the Fed is ostensibly politically independent, the decision comes at a ticklish time with the presidential election less than two months away.

Washington conservatives have been critical of the central bank's money creation, which has caused its balance sheet to swell to $2.8 trillion. They worry that the growing money supply will lead to inflation, which has reared its head in food and energy prices but has remained tame through the broader economy.

http://finance.yahoo.com/news/fed-pulls-trigger-buy-mortgages-163638925.html

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Fed Undertakes QE3 With $40 Billion Monthly MBS Purchases
13 September 2012, by Joshua Zumbrun (Bloomberg)
http://www.bloomberg.com/news/2012-09-13/fed-plans-to-buy-40-billion-in-mortgage-securities-each-month.html



Excerpt:

The Federal Reserve said it will expand its holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt a month in a third round of quantitative easing as it seeks to boost growth and reduce unemployment.

“We’re looking for ongoing, sustained improvement in the labor market,” Chairman Ben S. Bernanke said in his press conference today in Washington following the conclusion of a two-day meeting of the Federal Open Market Committee. “There’s not a specific number we have in mind. What we’ve seen in the last six months isn’t it.”

Stocks jumped, sending benchmark indexes to the highest levels since 2007, and gold climbed as the Fed said it will continue buying assets, undertake additional purchases and employ other policy tools as appropriate “if the outlook for the labor market does not improve substantially.”

Bernanke is enlarging his supply of unconventional tools to attack unemployment stuck above 8 percent since February 2009, a situation he called a “grave concern.” The decision immediately provoked a renewed backlash from Republicans, including Senator Bob Corker of Tennessee, who said Bernanke’s policies damage the Fed’s credibility while doing little to spur the economy.

The FOMC also said it would probably hold the federal funds rate near zero “at least through mid-2015.” Since January, the Fed had said the rate was likely to stay low at least through late 2014. The Fed said “a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the economic recovery strengthens.”

[Kilika]

Senator Bob Corker of Tennessee, who said Bernanke’s policies damage the Fed’s credibility

Wait, what? 

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Ben Swann Reality Check explains QE3 and what it means for you

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They also talk a bit about QE3 in this article, and for good reason.

http://www.shtfplan.com/headline-news/early-2013-prepare-for-a-massive-food-price-surge-up-175-from-the-year-2000_09192012

Early 2013: Prepare For A Massive Food Price Surge; Up 175% from the Year 2000

9/19/12

The after-effects of 2012′s summer drought are far from over.
 
According to a new analysis from Rabobank this year’s crop failure and premature slaughtering of pigs, cattle and other staple meats will lead to an average 15% surge in food prices in 2013.
 
It may not sound like much, but when you combine this with monetary easing that threatens to rapidly depreciate the value of the dollar and an already indebted U.S. consumer, we can expect even more participants to enter government nutritional assistance programs.
 
It’s more expensive than ever before just to stay alive.
 

The record US, and global, summer drought has come and gone but its aftereffects are only now going to be felt, at least according to a new Rabobank report, which asserts that food prices are about to soar by 15% or more following mass slaughter of farm animals which will cripple supply once the current inventory of meat is exhausted.
 
From Sky News: “The worst drought in the US for almost a century, combined with droughts in South America and Russia, have hit the production of crops used in animal feed – such as corn and soybeans – especially hard, the report said. As a result farmers have begun slaughtering more pigs and cattle, temporarily increasing the meat supply – but causing a steep rise in the price of meat in the long-term as production slows.
 
“Farmers producing meat are simply not making enough money at the moment because of the high cost of feed,” Nick Higgins, commodity analyst at Rabobank, told Sky News. “As a result they will reduce their stock – both by slaughtering more animals and by not replacing them.” Somewhat ironically.
 
Food prices are now being kept at depressed prices as the “slaughtered” stock clears the market.
 
However once that is gone look for various food-related prices to soar: a process which will likely take place in early 2013, just in time to add to the shock from the Fiscal Cliff, which even assuming a compromise, will detract from the spending capacity of US (and by implication global) consumers.
 

The “mass liquidation” of animals – which Rabobank said will pick up pace in the beginning of 2013 – will contribute to food prices hitting new highs.
 
The cost of pork is expected to rise at the fastest pace - by 31% by the end of June next year – while beef costs could increase by up to 8%.
 
“This record cost of meat and dairy will combine with already-high crop prices to increase food prices by 15% by the middle of next year,” Mr Higgins added.
 
This would see food prices reach their highest level on record, up by 175% compared to the year 2000.
 
But the report stressed that the current situation is very different to the crisis of 2008 – in which food stables of the world’s developing economies, like wheat and rice, were severely affected.
 
The bank’s research follows official figures that showed inflation had slipped back to 2.5% in the UK – closer to the Bank of England’s inflation target of 2%
 
But Mr Higgins warned that next year’s food price rise could push inflation in the UK higher, and so further away from the Bank’s target.
 
Via Zero Hedge

But inflation is only at 2% according to the CPI.
 
Ben Bernanke and his helicopter air force have everything under control, just like they said they would.
 
That 15% in food price increases doesn’t even include the new money that is sure to hit the system now that some $80 billion a month is being committed to maintaining the illusion of economic stability and recovery.
 
All the while American consumers, who assume everything is as it has always been, are going to be paying 175% more for food by summer of next year than they were paying in the year 2000.
 
The only investment strategy available to ensure that you don’t run out of affordable food as the US dollar loses value and climate effects deplete available food stores is to invest in hard assets today.

[Psalm 51:17]

Fed leaders can't keep mum on dollar's future
http://www.theglobeandmail.com/globe-inves...article4562523/

The U.S. central bank is running out of taboos to break. This week, Boston Federal Reserve President Eric Rosengren admitted that the latest quantitative easing broadside would debase the dollar.

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NEW YORK (AP) — A quiet day on Wall Street turned into the worst sell-off in three months after a Federal Reserve official said he doubted the bank's effort to boost economic growth would work.

Charles Plosser, president of the Fed's Philadelphia branch, told an audience Tuesday that the Fed's effort to support the economy would likely fall short of its goals.

The speech probably startled some investors who had faith in the Fed's latest plan, said Jack Ablin, chief investment officer Harris Private Bank. The plan includes buying $40 billion in mortgage bonds each month until the economy improves.

"So many investors have bought into the illusion," he said. "And it was like Plosser pulled up the curtain on the Wizard of Oz."

The Standard & Poor's 500 index lost 15.30 points, its fourth straight decline, to close at 1,441.59. The 1.05 percent drop was the worst for the S&P since June 25.

http://news.yahoo.com/dow-drops-100-fed-officials-warning-204425180--finance.html

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http://www.youtube.com/watch?v=2aKK4N-c3HQ&feature=youtu.be

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OK, this is from what Lindsey Williams's "sources" have said. No, I don't endorse Williams b/c he can sensationalize and fearmonger pretty well, but nonetheless at times he can give decent info.

Here's some info he has over QE3 and the staged debate last week/why it happened...

http://z4.invisionfree.com/The_Great_Deception/index.php?showtopic=10171&st=25&#last

NOTES:

1) He says that Obama threw the recent debate because the elite scared him to death, and Romney repeated some of the things the elite had already told Obama which freaked him out. Well, when a man allows himself to be a puppet of thugs (the elite and their minions) what do they expect?

It was obvious that Obama threw the debate, big time! He looked like a deer in the headlights. You decide why he did that!

2) MOST IMPORTANT POINT: Sept 13, 2012 Ben's QEIII will affect the life and dinner table of all Americans. Ben announced that the Fed would be buying $40 billion of Mortgage Backed Securities monthly (the garbage on wall street that caused the economic collapse, IMO) and indefinitely. Where will the money come from? OUT OF THIN AIR WHICH IS WHAT THE FEDERAL RESERVE HAS BEEN DOING ITS ENTIRE EXISTENCE.

"THE FEDERAL RESERVE WILL OWN EVERY PIECE OF US REAL ESTATE BEFORE THIS IS OVER."

3) The Federal Reserve will take these Mortgage Backed Securities and invest (LEVERAGE) them again in the derivatives markets. nEVER IN THE HISTORY OF OUR COUNTRY HAS THIS BEEN DONE TO THIS MAGNITUDE ($360 billion). (FOLKS, THIS IS WHAT GOT US IN TROUBLE IN THE FIRST PLACE, AND YET THEY ARE DOING IT AGAIN?)

4) What are the lending institutions going to do with the $40 billion monthly? An agreement has been made for the Fed to buy them from the banks and then they will buy Treasury bills with the money. These actions will not help the real estate owners or the economy but will pay the interest on the debt and maintain the US Dollar a few months until they are ready for the worldwide economic collapse worldwide.

5) Prior to the October 3 Presidential Debate, Lindsey says his source contacted him and told him that Obama would throw the debate because the elite had gotten to him and scared him to death. The 3 reasons: 1) Obama's rejection of the Pipeline, 2) Dodd Frank bill will be rewritten, and 3) Romney talked about oil in America including oil under Denver CO and the Bakken oil fields. (Romney delivered a message to Obama in the debate, which also shows you Romney is controlled by the same ******** as Obama)!

6) He said that when they have caused enough chaos in the Middle East, they can then raise the price of oil to $150 a barrel, and then come back to America and produce local oil. (You see, to make local oil profitable, they had to have the price up to $150 per barrel). That is their goal!

7) Prices are going up on everything: food, clothing, oil, gas, etc.

When the people of America did not rebel after the Ben QEIII announcement, the elite knew the people would not rise up and will accept their slavery and give in to the elite NWO.

9) If the elite have their way, Obama will not be re-elected because he has ****** them off.

10) China is in trouble, but could double the prices of their goods that ship to US walmarts, etc.

11) The elite will be bringing in their NWO differently than what most expect. He didn't say how.

12) He also mentioned "The Devil's Messiah" and how the churches have been conned to go along. (AJ said some are even removing their crosses)

13) People ask him, "Why would they destroy their own country?" His replies: they aren't, they are taking it over and want total control without riots and backlash. They are dominating us prior to the financial collapse.

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[Boldhunter]

"Prior to the October 3 Presidential Debate, Lindsey says his source contacted him and told him that Obama would throw the debate because the elite had gotten to him and scared him to death. The 3 reasons: 1) Obama's rejection of the Pipeline, 2) Dodd Frank bill will be rewritten, and 3) Romney talked about oil in America including oil under Denver CO and the Bakken oil fields. (Romney delivered a message to Obama in the debate, which also shows you Romney is controlled by the same ******** as Obama)!"

Awe! And here I thought those comedy film writers of "The Campaign" were original! American audiences fooled twice! You know what they say...

(BTW don't waste your dime seeing the piece of junk because they make a point to blaspheme the Lord's Prayer -- in a MOST shameful way)