GAE4 On Its Way!

RRWNL — Terry Wilken writes: And just what does GAE stand for? It stands for God Awful Economics. That is what the FED has come up with to replace QE (1, 2 & 3). It is a new way to manipulate the money supply so that they do not have to increase interest rates or buy more treasury bonds. They say they can guarantee low interest rates until at least 2013. Maybe one of the BIG banks told them that if they kept buying Treasuries, they could actually lose money. They may have to actually increase interest rates. This would put the Federal Government in a real pickle, but it would not make the BIG banks happy either.  A Congressman once asked a person from the Fed, who was he and where was he from, and he replied, “I am from the FED and I am here to help you”. I just made that up in case you question my hearing.

If anyone can explain the new Fed policy to me, I for one am anxious to listen.  I think it means that they intend to target specific Treasury bonds in an attempt to keep the interest rates under control. I cannot tell you how this would work or what it would accomplish. I think they are calling for a Hail Mary pass to put it in football speak. I really think they are in desperation mode.

The FED has been enabling the Federal Government so long that they have lost all control of their ability to think and express their intentions in a rational manner. They seem to be learning from the ones that they are enabling. It may have even been part of the agreement that got them in charge of our money supply in the first place. I do not know anything except that secrecy has been a part of their modus operandi. They have the perfect job. They can make as much money as anyone would ever need. They can do anything with the money supply they want. They can do this all in complete secrecy.

The Federal Government has literally kicked the can down the road once again. They knew that they could not agree to a proper resolution to this matter, so they decided to come up with a committee to solve it for them.  Each side picked members that they thought were intransigent in their opinions. This guarantees that it will end up in a tie on most issues.  What a way to govern. This sure seems like a path to failure, but it offers us two more breaths of air.  We can now ‘HOPE’ that someone will ride in on their white horse and save us. It is all that is being held out. We all need that olive branch. We have nothing else to hold on to. (08/15/11)