Satan’s retarded cousin (“Ben Bernanke,” as he’s known to many in the public) has apparently decided that the dollar just is not yet close enough to worthless:
The Federal Reserve’s announcement today that is launching a third round of quantitative easing validated widely held expectations that the central bank would provide more monetary stimulus in an effort to speed the economic recovery.
The Fed said it will purchase $40 billion a month in mortgage-backed securities and extended its guidance on interest rates. Rates will stay low through mid 2015 instead of 2014, the bank said. The additional Fed easing, along with its intention to continue reinvesting the proceeds from principal payments from its holdings of financial assets, will increase its inventory of securities by approximately $85 billion each month through the end of the year. These actions, which are more aggressive than many analysts expected, “should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative,” according to a Fed statement.
The Fed, like all central banks, can only ever do one thing as a matter of policy: debase the currency. That is the only solution they can give to any problem. Economy not growing fast enough? Debase the currency! Economy growing too fast? Debase the currency (but only to a limited extent)! Unemployment too high? Debase the currency? Stock market crashing? Debase the currency! President got the sniffles? Debase the currency!
Now, some are claiming that QE3 is happening because the Fed panicked. Some might be inclined to argue that QE3 is happening because the Fed is at its wit’s end. It might even be true that the Fed is panicking, and/or at its wit’s end. But the only reason why QE3 is happening is because the Fed’s only tool is debasing the currency. That’s it. That’s all it can ever do. Like all other central banks in history, the only tool at its disposal is inflation.
And when you all have is a hammer…