US Action News

The loss of income from the redemptions comes to a cool $3.3Bn a year. That is chump change at SSA – but it will happen again next June when another chunk of high coupon paper rolls off the books. – Bruce Krasting

The fed continues the same policy initiatives even after it fails to get the desired results they were seeking at the outset of the programs.

Rick Santelli rants against recent Fed statements and stock market dependence on the Fed’s buying of government debt known as QE.

In 2004 Obama said the “monstrous” deficits were “an enormous problem” when the deficit was $413 billion. In 2008 he said increasing the debt would burden our children and was unpatriotic. Heritage Foundation gives 17 reasons he was right then and it’s so much worse now.

The laws of economics have not changed just because the Fed chooses to ignore them. These laws cannot be repealed by the Fed nor can they be altered.

Hyperinflation or a brutal hike in interest rates — [could make] the present “fiscal cliff” look tame in comparison. – IBD

Money printing has also enabled Washington to avoid making hard choices. As a result, there has been little effort on the part of either political party to hold the Fed accountable.

There is not a chance in hell that younger workers are going to prosper looking at this chart. As a result, future tax revenues will be less than planned. The economy will lag well below potential. – Bruce Kasting

Central bankers and economists are so wrapped up in warped mathematical formulas they fail to understand the obvious. The answer, which they refuse to accept, or even consider as a possibility, is that central bankers and the monetary system itself are the problem.

The federal debt is so large that if the interest rate the government pays rose just 1 percentage point, the additional annual cost would be equivalent to the cost of the Iraq and Afghanistan wars combined.