What? The Cuban socialist master-plan to bring down the US economy with cigars has been thwarted by Americas' own rampant captialism?
Irony much?

I'd be more gleeful but thanks to the past actions of certain Conservatives the UK is destined to wander into the same minefield.

Um I missed the class where they listed "printing money to loan yourself" as capitalist

Yes we will have hyperinflation us rightwingers have said so for six months.

I should have known it would hit because Fed Chairman Bernanke always dismisses inflation with a terse sentence--after we beat the recession we'll whip inflation with reduced money supply and higher interest rates. Get away kid, you bother me.

What this means is that economic PhDs will be able to distinguish between the Bush and Obama recessions, but to the 300 million other Americans its gonna be one long recession. For the program for beating inflation does not permit for growth. The last time we did it was 1982, which is why the current recession is only the worst since 1982--it sucks having a recession where the government pumps no money into the economy. It can be very corrective but it sucks. How Bernanke thinks he will be permitted to do that to people I don't know. He does not strike me as a very savvy guy.
But lemme assure you all that it is safe to buy dollar securities! Safe as houses--oooh.  Uh well, if you keep buying bonds there's no reason we can't afford to pay off your older bonds!  And that's America promising that to you!

Two wings on the same bird of prey.
As long as both 'wings' support the Federal Reserve System, a system of perpetual inflation and debt, there is no getting out of this hole our fiat currency has made for us.
The Fed bill passed the house on Dec, 23 1913. Curious time to pass such important legislation isn't it?

Much like we have to pay back a loan from any bank with interest, so it goes for our government taking out loans from the Federal Reserve. They money to pay off the interest (interest rate) can only come from the central bank (Fed) which can only create more debt.

It's simple, yet mind boggling in its absurtity.

Ouch

I knew there was problems when the Fed said they were creating 1.5 trillion more cash, I saw gold jump $80 in that day alone.

Pumping it to bonds? Shit, guaranteed to f( ) the entire system right then and there, cause funny money replacing what others had thought as real money means no nation on Earth will invest with us anymore. Our credit rating just became an F--

Consider Obama fail forever more now.

Time to visit a food place before the panic trickles down.

Buy gold time.

China is going to collapse, probably 6 months after a series of failed attempts to prevent it.

I think this will have a devastating affect upon oil based nations since oil is often paid for upon arrival.

S. America...

This could lead to a few wars without the United States seeming strong and upset over the idea of those wars. Venezuela might get invaded by Columbia for instance.

Japan already saw the coming of the death of the United States, thus why they have been packing their cohonas versus N. Korea with their own issued threat to shoot down any missiles flying over their heads.

If US troops are sufficiently low in Iraq, Iran will try to invade. They will expect Obama to pull the rest of our troops out post haste, and I do not blame them for their beliefs.

I think Israel might end the Hamas problem for good during such conflicts.

Russia.... will be Russia.

Expect at least 1 war from them.

http://www.bloomberg.com/apps/news?pid=20601103&sid=aOsvwdYztl7Q&refer=news

for those who REALLY care to understand.....read this.

Its a little deep, but maybe you can pick up what the FED is attempting to do.

Hyper-Inflation.....hehe.

no, How about Anti-Deflation.

Amazing how people can be so clueless........ I mean that as an insult to be clear.

Because you have not one understanding of even RUDIMENTARY Economics..
...nevermind the advanced study 0f just what a central bank can do to keep an economy stable.

The DANGEROUS aspects of this entire package is the damage Run away Govt. Spending creates
what the dangers of Selective TAXATION are...

..and the Fed Chairmen (todays and past) have been stating this as even handed as they possibly can w/o seeming to be partisan.

Black Wing follow my logic trail for a moment.

The Government creates 1.5 trillion dollars from the air.

The Government spends this 1.5 trillion dollars on treasuries.

The Government rinses and repeats said action 10-20 times.

The Government now claims they have halved the debt of the United States to half.

Quote from your own article
The New York Fed will concentrate Treasury purchases among two- and 10-year securities. The transactions will take place two to three times a week, and the Fed may also buy other maturity Treasuries and Treasury Inflation-Protected Securities, according to a New York Fed statement.

The moves may more than double the Fed

Don't agree BW

Bank reserves before Sept 08 were about $2 billion, in Feb 09 they were $745 billion

The banks are sitting piles of cash.  This is not a crisis of liquidity but of confidence.  You put that $745 billion on the street you can lose your shirt.

Everybody who does an audit takes a massive hit---they are holding worthless paper.  The ones who don't, AIG, get BILLLIONS from the federal govt.

US banks got the $$$$.  Dubai got the $$$.  They're sitting on it.

Why risk your very neck speculating on free enterprise when Uncle Sucker will do it for you?

Deflation--- HURRAY.  When your prices were based on EVERYBODY seeking financing n the sale because they didn't have the cash, and got loans because the bank expected the new owners would sell out before paying off the loan by the terms...PRICES WERE TOO HIGH.

you're gonna need a PhD in economics to tell the difference between the Bush recession and the Bernanke recession.   Hiking rates and freezing money supply leads to recession.  And no federal payola either!  Think America will allow that?

what do you think china will do when it realizes that US is gonna print its way out of debt through inflation ? Yeah right china will stop selling goods for dollars and will require gold instead or will demand land (starting with return of Taiwan)

The Federal Reserve already has the funds under their control.

How the Fed uses them is to manipulate the economy.

Now, Lowering rates is inflationary. 
OBVIOUSLY we are not there.  No matter how much liquidity is added, or how low the rates are now.....its STILL considered a DEFLATIONARY PERIOD.

This is using the Durable Goods, non-food products scale.  NOT the housing values.

As far as the exchange rate....who cares.....I sure dont.
Notice. the Trade balance.

The Imports dropped almost 10%.  Oil...and a slowing economy....Less foreign product ordered.

So, what happens ??  Increased supply of goods for sale to the US.....after all we are the largest Import nation ... yes ?

China:   China can kiss my lilly white ass.   They WILL Buy our bonds, because they NEED the bonds to secure their putrid currency.
ALSO....they can pass on buying bonds, and spoil the spending party in the US.   THEN, NO ONE will buy their pots and pans and crap....and AGAIN, they have no economy either.

After all, what are they going to do w/ all the cash (Of any nations).

No.  this is NOT inflationary.   Again, the Fed can easily pull liquidity and raise rates in the face of Inflation.
Also, they can toss those bonds back out on the market, and Freeze the inflationary pressure.

Now...agian....this is not including a run away, wacko leftist govt. doing all it can to F the system.