Operation Twist: Fed Ready for QE3

Kurt Nimmo
Infowars.com
September 19, 2011

Daily Forex Fundamentals, written by Danske Bank, says the FOMC will probably get QE3 rolling by the end of the year or early in 2012.

“Following the continued deterioration in economic data, we expect the Fed to take action in the form of a twist in the central bank’s portfolio towards longer maturity government bonds,” the Danish bank writes.

Unless we see significant improvements in economic data over the next couple of months we deem it likely that the Fed will initiate QE3 (buying either more government bonds or mortgages). This could happen either by end 2011 or early next year. We will particularly be looking to employment data, where we need sustainable and significant improvement in the coming months, in order for QE3 to be taken off the table.

The Federal Open Market Committee (FOMC) meets on Wednesday and more information on QE3 is expected at that time.

The main scenario for the Wednesday meeting will be for the Fed to start shifting its portfolio of government bonds towards holding more long-term securities and fewer short-term securities. This extension of the portfolio’s maturity is designed to push down long-term interest rates. We see this as a highly likely outcome of the meeting.

The interest rate currently stands at 0.25% and the Fed may move it down to 0.10%, “in order to increase the banks’ incentive to lend.”

Big banks, however, are not in the business of lending money to Main Street. Since the fall of Glass-Steagall, banks have been in the business of buying and selling complex derivatives and writing credit default swaps. “Fees are good, bonuses come in, and the fed or government will always be there to bail them out if things get hairy,” notes UrbanDigs.com.

Interest rates at or near 0% guarantee capital destruction. “Capital destruction is the main byproduct of monetary inflation, a concept totally foreign to the inflation engineers at the USFed and its satellite central banks,” writes Jim Willie for Financial Sense.

They are agents of magnificent systemic devastation. In the wake of each QE round are discouraged creditors who turn away in disgust. The damage and inflation feeds upon itself in stages of intense wreckage. The motive, need, and desperation for QE3 is being formed here and now, to be announced by late summer probably. Prepare for QE to infinity, endless hyper-inflation, a process that cannot be stopped, as the urgent needs grows. Any attempt to halt the process results in almost immediate total annihilation. So continuation of QE rounds serves to manage the deterioration process and guide the financial structures gradually and orderly into oblivion.

  • A d v e r t i s e m e n t

Add to capital destruction mounting inflation. The Fed considers this a good thing. “So now we are beginning to hear murmurings about the possible invigorating effects of ‘just a little inflation.’ Perhaps 4 or 5 percent a year would be just the thing to deal with the overhang of debt and encourage the ‘animal spirits’ of business, or so the argument goes,” writes Paul Volcker, former Fed boss, for the New York Times.

Bernanke and the Fed are moving us toward an inflationary depression. The Federal Reserve was established in 1913 specifically for that reason, as Rep. Charles Lindbergh noted. “The new law will create inflation whenever the trusts want inflation. From now on, depressions will be scientifically created,” he warned.

Bernanke admitted the Fed created the Great Depression with its monetary whipsaw weapon. It is now working on the Greatest Depression.

The Federal Reserve is not about saving business and creating jobs. It’s about a slow-motion destruction of the economy that will pave the way toward the bankster nirvana of a global economy that will present humanity with the most effective and insidious mechanism for slavery ever devised.

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18 Responses to “Operation Twist: Fed Ready for QE3”

  1. Arrest the criminals bankers and start the treason trials. Debasing the currency is a serious crime and should be punished.

  2. ★ Ron Paul 2012 ★

    * i found an Awesome site for NEWS-JUNKIES that are AWAKE

    visit infowarrior76DOTcom

    or click my name for link (bigbrother12)

  3. when the federal reserve minutes are read in two years covering this period were going thru now, we will see that the US federal reserve just bailed out the EU banks and that is a secret right now were saying China bailed them out with a huge bond purchase etc. we will soon find out the facts and the Federal Reserve has just sent trillions to EU banks they are not kidding me, the besmerked faces of bernanke and greenspans dopey gloom, both are treasonist and we cant know that they are propping up the EU banks, the stock market buying mbas etc. until 2 years later and its all done for political reasons and we lose individually when they print that money collectively all that money causes the cost of anything in dollars to go up because rule of economics #1 excess money chasing too few goods, #2 excess profits leads to increased competition, but this is more of a problem than number one because the average person has no money no retirement no equity no savings only the rich so expect rich people stuff to inflate but poor people stuff wont go up cause hno one has the money so the demand is under huge pressure for as far as we can see into the future, its demand and the lack there of that is killing our country. how do we rehabilitate the consumer well, he needs a job, so its catch 22 without the job, there cant be a rehabilitiation, and his credit would need to be recovered like eliminate fico and only allow derogatory for 3 years no 7 and still he needs a job or cant get credit, cant get a job with bad credit again catch 22.

  4. banks get the money at .25% and can go buy t bills at .50% this is why banks appear profitable, its a real scam and a joke and a lie, long term tbills at 2.something, they can buy verizon stockt and get a 5 to 6% dividend. so banks have no problem making money, the problem is inflation is difficult to figure, because oil in the 80′s is probably low considering normal demand, but things are not becoming normal they are becoming less normal so its a very strange future, if inflation is killing all investment, but yet, deflation is our biggest threat? unemployment spiral while corporate america does well selling to china india south america whos economies are still growing up to five percent even during the depression we in, and yes without the size of the stimulus were putting out there this economy is in shrink mode, so even though it started with bush, its really the obama economy now, and the effect of obama care and increased unemployment insurance are making it difficult to hire someone new, and cutting payroll taxes wont get new people hired the folks that are working get a few more bucks to blow on cable tv nothing that creates jobs.

  5. BETTER TO DIE FIGHTING ON YOUR FEET THAT DYING ON YOUR KNEES A SLAVE!!

  6. On your knees for qe3,
    the price is high, to the sky,
    keep kissin their @ass,
    the old bankers are havin a blast,
    must be a joke,
    aw hell, have another toke.

    • I love your poem! It gives this site a romantic cultural touch!

  7. Here come the benefits cuts, the higher unemployment, and the unaffordable food and energy.

  8. QE3 is the move that will end America as we know it.

    Nobody ever patted me on the back for being ‘right,’ and it’s not about being right anyway, it’s about being smart, people. Take to the streets if you live anywhere near a financial center…let them know you are done with ‘faux-governance!’

  9. What will it take to overthrow the globalists? No one has the right answer yet, but the question keeps resurfacing. The more we look, the more we are aghast as to how deeply, and for how many decades, their crimes have penetrated every corner of our lives. Has it gone so far that nothing political or judicial can stop it?

    That’s the question so disturbing to all freedom lovers who yearn desperately for a peaceful, not bloody, solution. It’s not America alone.

    We have many months to go before our hopes for Ron Paul will be tested. In that time, our options for resistance will be systematically eliminated. Common sense also tells us that plotting is now underway to ruthlessly decimate Ron Paul’s options for saving America, should he reach the Presidency. And of course, this assumes that a violent revolution is not already underway following a global economic collapse and/or a false-flag terrorist event and martial law.

    Otherwise, if a newly elected President Ron Paul’s hands are tied by a yellow-bellied Congress resorting to posturing instead of constructive action, and criminal lobbyists see that he is perpetually outmaneuvered despite the vast majority of people standing behind him, there may be little choice for him but to step out of government and be our revolutionary leader. Provided he escapes what happened to John Kennedy!

    Our Courts, government and Constitution have been stolen from us. As we pointed out in yesterday’s post, our army has been stolen from us by foreign criminals in banking. Our police have been stolen from us. The media has been stolen from us. The list goes on and on; even our educational and religious institutions have been stolen from us. Everything vital to our survival has been stolen and turned against us!

    We stand alone! Disorganized, leaderless, our helpless voices unheard in the stormy winds of unchecked evil.

    The message seems to be that we must do more than put all our hopes in an election. What is it that we can do now, besides whine and complain?

    We need to create our own storms demanding freedom, but unless we join together, our protests are nothing more than separate puffs of hot air, gleefully laughed at by the degenerates who engineered our defenseless situation.

    A hundred million puffs of air simultaneously and in a singular direction may create our storm of liberty.

    In other words, REVOLUTION! If we are wise and creative, we will realize that a revolution may take other colorings besides marching with pitchforks on the visible puppets goaded by invisible stinky demons lurking in the shadow governments.

    Actually, multiple revolutions should be ongoing. A wholesale economic revolt by cutting our banking and gasoline consumption can be very effective. Publishing, by whatever means at our disposal, the names of Bilderbergers and other collaborators would be a firestorm of fear against our enemies.

    Another type of revolution is within ourselves. Our character, our integrity, our priorities! American culture is in a failure mode, as planned, and we need to see that! When we depend on entertainment to relieve our boredom, when we indulge ourselves eating and consuming more than we need, when we hurt others to get ahead, we serve the enemy. Instead, let’s replace entertainment with creativity. Let’s replace indulgence with self-discipline. Let us replace the insecurities that drive us to stepping on others with reaching for the highest and believing in ourselves. LET US REPLACE FEAR WITH LOVE!

    The essential realization we must have, if ever we hope to win our struggle for freedom, is that the enemy has been using us against ourselves.

    • BRAVO!

    • You’re on the right track! Good will triumph over evil! WE must fight on every level.

  10. Life’s not a videogame man. One step at a time.

    • TODAY WE WILL BLOCK ALL STREETS IN AND OUT OF WALL ST…
      TOMORROW, THEY WILL HAVE TO BEGIN TO REPORT THE TRUTH.

  11. I cannot wait for it to begin. My gold and silver will buy me a nice fortress ready to repel the FEMA soldiers on the prowl.

    • until they bring some tanks

      • BY then we’ll have RPG’S and anti tank guns!

        • More than half the army will join us eventually!

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