Skip to main content

So what is going on for 2012 and the U.S. Fed?

Fitch Ratings said it expects U.S. federal debt held by the public to exceed 90% of gross domestic product by the end of the decade, as the government struggles to agree on timely fiscal measures to reduce the budget deficit.

(Kitco News) – The U.S. Federal Reserve has pulled out all the stops in recent years, leaving the U.S. with a near zero interest rate policy since December 2008. With U.S. economic growth remaining lackluster, the debate rages on whether the Fed will embark upon another round of bond-buying in 2012, widely known as quantitative easing.
Current market rumors include expectations for a QE3 package of about $500 billion mortgage-backed securities.
The official monetary policy rate, or federal funds rate remains at zero to 0.25 basis points and the Federal Open Market Committee has suggested rates will remain at that level through mid-2013.
Traditionally, during recessionary periods, the Fed lowers rates, which encourages consumer borrowing and the increased levels of spending help drive the economy to stronger growth levels. That pattern isn’t working this time.
Recent U.S. economic data, however, has been surprising on the upside, leaving most economists to forecast a modest acceleration in GDP growth for 2012, and that has implications both for Fed policy and the direction of Treasury market yields.
Chris Rupkey, chief financial economist at the Bank of Toyko-Mitsubishi is calling for 2012 GDP growth at 3.2%.
“The economy may actually be lifting quicker than people expected. The weekly jobless claims number is a leading indicator, growth could be stronger than people expect,” he said. In mid-December, the weekly jobless claims data dropped to a 3 1/2 year low, holding well below the critical 400,000 threshold for several weeks.

Addressing potential risks of another QE package, Stiles said “it tends to create imbalances. To buy $500 billion in mortgages, printing more money on top of all the money they’ve already printed—it does tend to boost commodity prices every time they print money. That ends up hurting the middle and lower class Americans.


Popular posts from this blog

1914 Germany Afrikaner farmer Agreement

thank you Etienne 
translated from Afrikaner to EnglishTo all the people of the white race all over the world, most of all to the German nation: This is an important agreement Concerning the South African Boer people and the German nation. It has to do with an agreement between the Boer rebellion and the German troops in Southwest Africa. The Boer rebellion were lead by leaders of the Afrikaaner nation (General Manie Maritz, General SG Maritz, General Koss Delarey) and who’ll be fought against the English in the Second Anglo-Boer war from 1899 to 1902, where the Afrikaaner nation under hun president In Paul Kruger ulcers completely humiliated by the English when ze ulcers forced to sign the Treaty of Vereeniging in 1902. The atrocities committed against the Boers in the Concentration camps ulcers horriffic to say the least, and at least 30 000 Boer women and Children Were driven from hun farms Which Were torched under Lord Kitchener’s Scorched Earth policies. The attached files are an ima…

Gangs are everywhere, including the burbs, not to worry though 'We Have A Program For That"

Hardcore Gangs Hit Ohio Suburbs GANGS IN THE ’BURBS
Subversive element creeping beyond Columbus’ borders
Last year, Westerville North High School suspended two students who flashed MS-13 hand signs and drew gang insignia during an English-asa-second-language class. MS-13, or Mara Salvatrucha, is a notoriously violent street gang with roots in Los Angeles. It was formed by immigrants from El Salvador.

Gang crime isn’t nearly as serious or common in the suburbs as in some Columbus neighborhoods, but suburban schools and police departments are increasingly on watch.
"It’s not so centralized in the inner city as it used to be," said Pat Brooks, a veteran Columbus police gang unit officer.

Suburban police call Brooks and his colleagues when they suspect gang activity in their jurisdictions.

Most of the crack dealers in Reynoldsburg are gang members who live in Columbus, said Tye Downard, a Reynoldsburg police narcotics detective.

They go there to make mor…

MS-13 and Los Zetas Drug cartels stealing millions of barrels of oil and taking over control of the drug trade.

Los Zetas vs Ms 13 from Los Zetas is an armed criminal gang that operates as a hired army for the Gulf Cartel. The group is believed to be led by Heriberto “The Executioner” Castanon. Los Zetas, the Ninth CartelTuesday, May 18, 2010 |  Borderland Beat Reporter Buggs