What to do?

[THRESHOLD]

No meaningful job creation despite the largest "monetary easing" programmes ever seen (and ongoing.) YET - inflation still reamins pervasive. Inflation is even seen in the non-core item arena. Yet there is still no growth in private sector investment. Can't raise interest rates because large investment items (mainly houses) continue to drift lower. Anyway - there seems to be no spare cash in the private sector - so interest rate hikes will not limit spending; and we WANT the banks to lend money. What to do? What to do? What to do?

[kwagga]

Unemployment claims (mm) edge up, Core PPI (mm)edge up, trade balance -$46 bil (mm) ? Time for Ben to take out the cheque book ?

[THRESHOLD]

That is the only answer they have. BUT it isn't working. They can never end "easing."???

[THRESHOLD]

I have a solution - 2 in fact, (1) A huge depression. (2) An even bigger war.

[kwagga]

This is an election year remember. They will stimulate Obama into the Oval office once again.

[THRESHOLD]

Point is KWAGGA - there was always going to be more easing (notwithstanding the election year.) At the end of the day though - if it hasn't worked yet - why should it work now? I believe the FED currently funds 61% of her own paper. Talk about a Ponzi scheme. Has anyone else heard this stat?

[Fredsed]

In the Spring we sanitize our QE. It's like taking a shower with water that is'nt wet. The engine may be nackerd but we can push this cart with QE until the next ice age. QE forever? Yippee?