Our dear friend plans to buy $40 Billion worth of securities a month until they decide that conditions have improved, which is basically a blank check. But not treasuries, they’re buying mortgage backed securities in the hopes of spurring the housing sector on.
Let the printing presses fire up! Over $3 Trillion printed out of thin air since 2008 when they started the QE cycles, and more to come!
Oh yeah, the Fed has explicitly left open the possibility of doing MORE quantitative easing with treasuries, if they think they need to.
The dollar? Tanked hard against other currencies, even the Euro.
So what does this mean? The money supply goes way up. Thanks to economic realities, this means that prices go up too. This is run of the mill cause and effect at this point, but the bankers and politicians just keep on pursuing the failed policy of firing up the printing press.
The job numbers for this week are particularly dismal, though you won’t see that in the news. New unemployment claims are up again.
So what do you do? Make sure you have buffer in your cash flow budgeting. Know what you’ll do if your money suddenly only goes 80% as far as it does today. For many people, that’s 20% more than they can handle.
Make sure you’ve got extra food stored. Make sure you’re growing some food this fall and winter.
Have redundancy in your income streams. Have plans for what you’ll do if your primary income stream goes away. Rising costs for doing business results in lower profit margins, and can force a company to reduce operating expenses (layoffs) or even go out of business. Don’t think it can’t happen to you.
But above all, make sure you have local contacts and connections. I’ve talked about it before, but knowing the folks around you is critical. Share and barter.
See this for what it is. Another attempt to stave off economic ruin that is doomed for failure. A futile grasp at a branch as we slide down the cliff.