We are thinking in the same contextual path. Also the bottum link confirms the operation.
Three approaches
Bernanke discussed three approaches to further easing in his prepared remarks.
One option, Bernanke said, would be for the Fed to provide more “explicit guidance” to the pledge that rates will stay low for “an extended period.”
Another approach would be another round
of asset purchases, or quantitative easing, or for the Fed to “increase the average maturity
of our holdings.”
Finally, the Fed could also reduce the quarter percentage point rate
of interest that it pays to banks on their reserves, “thereby putting downward pressure on short-term rates more generally.”
Bernanke said Fed officials still believed the unemployment rate would decline to a range
of 8.6% to 8.9% by the fourth quarter. The jobless rate has moved up to 9.2% in June from 8.8% in March.
Inflation has picked up so far this year. The price index for personal consumption expenditures (PCE) rose at an annual rate
of more than 4 percent over the first five months
of 2011, and 2-1/2 percent on a 12-month basis.
The second component
of monetary policy has been to increase the Federal Reserve's holdings
of longer-term securities, an approach undertaken because the target for the federal funds rate could not be lowered meaningfully further.
June FOMC meeting, it has reached a broad consensus about the sequence
of steps that it expects to follow when the normalization
of policy becomes appropriate. In brief, when economic conditions warrant, the Committee would begin the normalization process by ceasing the reinvestment
of principal payments on its securities, thereby allowing the Federal Reserve's balance sheet to begin shrinking.
http://www.frbsf.org/publications/econo ... 1-08bk.pdf
In contrast to Modigliani and Sutch, we find that Operation Twist had a highly statistically significant effect on longer-term Treasury yields.
The economy which they wish not to confirm "the malinvestment overhang shadow " will take in your reference the same timeline that
was forwaded. The market is hostage so the amplification will appear which conveys our observations.
It will take longer than many will confirm to clear this overhang. The point is what we are seeing here that is a targeting
of consumers since they will
just take in loss
of purchasing goods a stealth tax again ad nauseum.
It will sum up to calculating the “financial repression tax,” or more specifically, the annual “liquidation rate”
The forums confirm our observations. Numerous people have implied inflation targeting should be conveyed and it is
already and has been in motion but to the Taxpayer. The PPI will disengage more citizens and the effects noted, as we have seen the
disengagement or inclination
of capital to reorganise. What I mean is what we are seeing even locally, namely fragmentation to solely Independant services.
Small Business is still being crushed and cannot hire since they are seeing the results in pricing and smothered in unfunded liability.
It was conveyed to bend the trends early in the administration's goal. This has not happened nor can it for some time. It is a predation process since
Government is the derivitive market by a shot gun marrage. We did note tearups on contracts in the forums since they could not funtion under the scope
of inquiry in the Legislation process. It is impossible to audit what they wish to ignore since what could it solve. The lingering reality is this. You cannot treat one dollar any different than another in the real world. The issue is Capital flight and as we know tolerated by any age
of Government. This was the market in 1931 and is no different today I gather.