From
Jerome Corsi's Read Alert - Japan's central bank has launched a 5 trillion yen ($60 billion) effort to buy a wide range of debt, including government bonds, corporate IOUs, real-estate investment trust funds and exchange-traded funds, setting off global concerns that central banks around the world are prepared for more quantitative easing. This came as the dollar hit fresh lows, reaching a record low against the Swiss franc, a 27-year low against the Australian dollar and a 15-year low against the Japanese yen. The Federal Reserve appears ready to restart the huge bond-buying effort ended last March, resuming government bond purchases as early as its next upcoming Nov. 2-3 scheduled meeting. What this means is that the Federal Reserve has decided to go back into the business of buying U.S. Treasury-issued debt by reinvesting into longer-term U.S. Treasury bonds the proceeds from expiring Fannie Mae and Freddie Mac mortgaged-backed securities that the Fed bought, mostly last year. "With interest rates already close to zero, the Fed will have to execute any monetary stimulus through the management of its balance sheet," the Financial Times in London reported. In the six weeks since the Fed announced that it would begin further easing of monetary policy, using its balance sheet to buy Treasury debt – part of a "quantitative easing" policy – the dollar has fallen 7 percent against a basket of currencies, the Wall Street Journal reported Friday. The moves by the Japanese and U.S. central banks indicate that global monetary policy is approaching the end of the road, having exhausted nearly every tool of monetary policy available to stimulate economies that remain resistant to job growth. With economic indicators again deteriorating, the White House is in near panic-mode, worried the economy will nose-dive just before the November mid-term elections into the second dip of the most serious economic downturn the U.S. has experienced since the Great Depression of the 1930s. Last week, Japan's central bank also moved rates to near zero, joining the United States Federal Reserve in using the last full measure of traditional monetary policy to stimulate economic growth.
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CURRENCY WARS: Japan sets interest rates at 0
From Jerome Corsi's Read Alert - Japan's central bank has launched a 5 trillion yen ($60 billion) effort to buy a wide range of debt, including government bonds, corporate IOUs, real-estate investment trust funds and exchange-traded funds, setting off global concerns that central banks around the world are prepared for more quantitative easing. This came as the dollar hit fresh lows, reaching a record low against the Swiss franc, a 27-year low against the Australian dollar and a 15-year low against the Japanese yen. The Federal Reserve appears ready to restart the huge bond-buying effort ended last March, resuming government bond purchases as early as its next upcoming Nov. 2-3 scheduled meeting. What this means is that the Federal Reserve has decided to go back into the business of buying U.S. Treasury-issued debt by reinvesting into longer-term U.S. Treasury bonds the proceeds from expiring Fannie Mae and Freddie Mac mortgaged-backed securities that the Fed bought, mostly last year. "With interest rates already close to zero, the Fed will have to execute any monetary stimulus through the management of its balance sheet," the Financial Times in London reported. In the six weeks since the Fed announced that it would begin further easing of monetary policy, using its balance sheet to buy Treasury debt – part of a "quantitative easing" policy – the dollar has fallen 7 percent against a basket of currencies, the Wall Street Journal reported Friday. The moves by the Japanese and U.S. central banks indicate that global monetary policy is approaching the end of the road, having exhausted nearly every tool of monetary policy available to stimulate economies that remain resistant to job growth. With economic indicators again deteriorating, the White House is in near panic-mode, worried the economy will nose-dive just before the November mid-term elections into the second dip of the most serious economic downturn the U.S. has experienced since the Great Depression of the 1930s. Last week, Japan's central bank also moved rates to near zero, joining the United States Federal Reserve in using the last full measure of traditional monetary policy to stimulate economic growth. Read more
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