TIME TO “TWIST” AGAIN, PEOPLE
Acknowledging the impact of a cooling economy and chronically high unemployment, the U.S. Federal Reserve announced this week that it would extend its “Operation Twist” program through the end of the year at a cost of $267 billion.
The program – which swaps short-term Treasuries for longer-term bonds – was implemented last September in response to stalled economic growth. It was scheduled to expire at the end of the month, but Federal Reserve Chairman Ben Bernanke and his colleagues apparently believe that the U.S. economy needs additional government “stimulus.”
Bear in mind that the secretive central bank has already printed $2 trillion in new money and “twisted” another $400 billion.
In extending “Twist,” the Fed didn’t rule out future money printing (a.k.a. “quantitative easing”). It also revised previous economic forecasts that called for 2.9 percent economic growth this year and an unemployment rate at year’s end of 7.8 percent.
Now, the Fed says growth this year will fall within the 1.9 to 2.4 percent range and unemployment will remain about 8 percent.
“Growth in employment has slowed in recent months, and the unemployment rate remains elevated,” the central bank said in a statement.
No shit, Sherlocks. Why, then, is our government continuing the same failed policies that have extended our economic malaise?
Seriously … in addition to all the bureaucratic bailouts, big bank lending and money-printing, the federal government approved $2.4 trillion in new deficit spending last August, money it is expected to blow through prior to the November general election.
When is somebody going to figure out that our economy would be better off if government stopped trying to “stimulate” it?
Clearly no time soon …
“In case things get worse, we are prepared to protect the U.S. economy and financial system,” Bernanke said.
The government’s money presses are warming up again … which means the money in your pocket is about to be worth even less.