The money quote from the Fed:
“purchasing additional agency mortgage-backed securities at a pace of $40 billion per month…If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability.”
Can it be said with a straight face the Fed asset purchases will ever stop? Expect them to pick up speed next year! Economic law:
“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.” ~Ludwig von Mises
Gold bugs always new this day would arrive, and it’s here later than expected. But I’m still awestruck. So are you: two members sent me notes immediately following the announcement.
The chief beneficiary are hard assets, especially the precious metals complex. I had planned an industrialization of China post for this afternoon, but it’ll have to wait until tomorrow.
The early point in the precious metal bull market can be illustrated in observing the mainstream wanting no part in this big picture discussion. Seeking Alpha would not publish this, so it’s a instablog.
‘Best climate’ Don Coxe has ever seen for gold price increases at Mineweb.
Headed back into the banking system, Gold Just Became Money Again at Daily Reckoning.
Addicted is the correct word: Financial Post.
Thanks for making my day!
John, that made me laugh too!
Who will rescue the Fed ?
Is FedZero full of lead ?
Do we need a nominal Fed ?
Is the Fed a Club Med ?
In which bed is the Fed ?
Is the Fed dead ?
While the Fed fiddles we play skittles
The Fed proclaim leaves us in pain
The Fed lies while plebs die
The Fed rein as we go down the drain
The Fed prints with all the inks
Green everywhere they don’t care
The Fed far and near spreading fear
Our policies simple and clear so labor and rest we guaranty our best
And so he has come to save the day
We shall find a fix someday before the decay
We are the FOMC working for you and me
The Institute for Economic Policy Achievement, proudly announces its 2012 Economist of the Year, Mr Alan Greenspan, for his award winning policy decision when he declared “Gentlemen, can we break for coffee please.”