Post by unlawflcombatnt on Aug 3, 2013 10:52:30 GMT -6
During the month of August (2013),
the Federal Reserve plans to purchase $40 billion in Mortgage Backed Securities.
You can read about in the Federal Reserve's own words here.
"Operational Results
In order to ensure the transparency of its agency mortgage-backed securities (MBS) transactions, the Open Market Trading Desk (the Desk) at the New York Fed will publish historical operational results, including information on the transaction prices in individual operations, at the end of each monthly period....
Additional Asset Purchase Amounts*
The Desk plans to purchase $40 billion in additional agency MBS over the month of August. The Desk will release the amount of additional planned purchases for September 2013 at 2 p.m. on August 30, 2013."
These purchases essentially pay off the holder of the MBSs--for the FULL amount they were claimed to be worth initially, regardless of what the underlying assets' real market values are (or were).
It thus replenishes the MBS-sellers $40 billion, so that it can be lent out again to further inflate asset prices--homes, stocks, commodities, etc.
The Fed is knowingly and deliberately causing asset price inflation in this manner.
And when this inflation spills over into the real economy, and increases consumer borrowing power, it causes price inflation in consumer goods as well.
Again, the Fed is DELIBERATELY doing this and, though to a somewhat lesser extent,
propping up consumer prices as well.
This is just what the economy does NOT need--propped up consumer goods' prices, along with stagnating wages.
This reduces real consumer buying power, and thus demand for goods & the labor to produce them.
And what a great way to widen the gap between rich asset holders,
and non-affluent working & unemployed Americans!
You're a genius, Ben!
the Federal Reserve plans to purchase $40 billion in Mortgage Backed Securities.
You can read about in the Federal Reserve's own words here.
"Operational Results
In order to ensure the transparency of its agency mortgage-backed securities (MBS) transactions, the Open Market Trading Desk (the Desk) at the New York Fed will publish historical operational results, including information on the transaction prices in individual operations, at the end of each monthly period....
Additional Asset Purchase Amounts*
The Desk plans to purchase $40 billion in additional agency MBS over the month of August. The Desk will release the amount of additional planned purchases for September 2013 at 2 p.m. on August 30, 2013."
These purchases essentially pay off the holder of the MBSs--for the FULL amount they were claimed to be worth initially, regardless of what the underlying assets' real market values are (or were).
It thus replenishes the MBS-sellers $40 billion, so that it can be lent out again to further inflate asset prices--homes, stocks, commodities, etc.
The Fed is knowingly and deliberately causing asset price inflation in this manner.
And when this inflation spills over into the real economy, and increases consumer borrowing power, it causes price inflation in consumer goods as well.
Again, the Fed is DELIBERATELY doing this and, though to a somewhat lesser extent,
propping up consumer prices as well.
This is just what the economy does NOT need--propped up consumer goods' prices, along with stagnating wages.
This reduces real consumer buying power, and thus demand for goods & the labor to produce them.
And what a great way to widen the gap between rich asset holders,
and non-affluent working & unemployed Americans!
You're a genius, Ben!