President Trump: The NEW one and only politics thread

The Fed just announced opened ended treasury and MBS purchases "in the amounts needed." US equity futures were limit down (5 percent) at the open last night. They are rouring higher on that news. We'll see if it holds. So far, it has looked like they no longer have the control they had during all the quantitative easing over years, that they used to blow the bubbles in the first place.

This is so destructive. They can not monetize trillions of dollars of the new debt our politicians are talking about. ...to deal with a credit crisis that the Fed caused in the first place by monetizing debt to the point that everything broke.

The cure is the disease. They are hastening their own end right now.

 

QE Infinity. None of us NEEDS a job. We'll just have the government support everyone and the Federal Reserve will keep creating unending, unlimited amounts of money to fund it.

Why did anyone EVER work when it was that easy?

 

BTW, buried in the press release. ...

"Establishment of two facilities to support credit to large employers – the Primary Market Corporate Credit Facility (PMCCF) for new bond and loan issuance and the Secondary Market Corporate Credit Facility (SMCCF) to provide liquidity for outstanding corporate bonds."

The Fed can not legally buy corporate bonds. ... yet. But that is where they are heading. They'll also try a "main street lending facility" to pretend they are being Santa Claus for everyone, even though their reckless, blunt tools can't manage every individual's finances that way. But watch. They are not going to go down without fucking things up beyond recognition now.

For anyone who thinks socialism is a good idea, what Bernie Sanders talks about is nothing compared to where we already are. This is a sad day for America and most people are too clueless to understand how much worse they are making the future for us. We need a very serious deleveraging. Instead they are showering us with the disease and pretending that it's the cure.

 

The labor force participation rate has only been somewhere around 65 to 70 percent. The only reason you think you haven't been living in that society already was that those numbnuts masked the depressed economy they had already saddled us with, with a giant debt and leverage fantasy that lasted close to a decade.

More of the same is not going to even create that fantasy anymore. On top of it, it's a formula for making things way worse. Do you want to live in a society where you are getting that unemployment anyhow (because sending government checks to people that a central bank monetizes is not an "employed" economy) AND you saddle yourself with hyperinflation so those checks are worthless anyhow? That is the formula they have been setting up for the last 10 years and they are now accelerating. They are very certain stagflation can't exist. So when we're living with it, they'll just tell you you're not experiencing what you're actually experiencing.