So we already had $2T in unease, now add another $600B to that. 2.6T for 140M taxpayers is $18,500 per taxpayer… assuming we ever pay it back. Will we?
What happens with QE is that the government issues bonds and then the fed “makes” this money out of thin air and buys the bonds. The government gets the money and the fed holds the bonds. The feds balance sheet is in check. In an honest and just world, the government would pay the bondholder back at the end of the bonds life, but maybe not in this world… I am thinking somewhere down the road the fed is going to say, no problem, we will just reissue this for you or just continue to hold it or “who cares?”. So in this world, it really doesn’t matter if it ever gets repaid…
The real way this gets paid though is by inflation. They just steal if fom you. Bernanke comes right out and says that they want to have inflation. Don’t you keep about $50 or so in your wallet? You know, spending money. Well that invisible hand of inflation at 2.0%/yr is stealing $1.00 from your pocket and you don’t even realize it. And that target is a MINIMUM of 2%, so 2% is not really a target at all in that sense. With a target, you are sometimes higher, sometimes lower. This is 2% or more. What they are saying is we will steal at least a $1, maybe more but not less than that, from your pocket change. Maybe that is the change I voted for.
News divisible only by one and itself. 