What is the federal Reserve doing to us? They pumped in over 80 billion dollars to our economy in a week?

Question

The market doesn't seem to be getting better?

Answer 1

Nice Question - not so sure about the answers you are receiving though

Look - this is all really very simple - the world currencies are not evenly traded. China has not re-evaluated their money to increase its value and match us - therefore the trade imbalance exist with moiney exchanges. I presume that since the dollar is effective world wide that its also the same throught japan and europe - or else they wouldnt be infusing money into the system either.

The hedge funds - which bank on our subprime mortgages - are all tied to the government bonds that go on sale and are bought up by foreign governments. The selling those bonds on the open market woudl send the world into an instant depression so fund infussion is necessary to keep them afloat and monetary balances on an even keel.

Doing this of course will help to consolidate all the owners of these bonds - or in reality - the real estate in our country - good move for those wanting to continue the trend to ward world government or the north american union - bad move for underdeveloped countries as the consolidation will become the end of them in the long run

Answer 2

It won't, because it can't. The Federal Reserve is basically printing more money and using it to buy bonds. This only creates the illusion of increased capital for a while -- a bubble. This bubble inevitably bursts when investors figure out it's BS and the economy loses more than it gained. And yes, the markets jumped, but that's because it responds on a very short-term basis. Stocks will fall along with everything else when the bust comes. This is really all the Federal Reserve does -- it distorts the markets and serves no constructive purpose. It's a political tool and a cash cow for the government.

Answer 3

...rathar than everyone giving 3D Farms the "thumbs down"...try picking up on her link and listening it through. It is 42 minutes long, but well worth the listen.

Ever wonder why your $ buys less each year/month/day?
Ever wonder why credit card companies still get away with huge interest rate fees?
Ever wonder why the people of Mexico are flooding our gates?
Ever wonder how FDR financed the Work Programs of the 1930's and why?
Every wonder about the history of money?

She has a great resource/summary of what has ocurred and happening now as well as what needs to be done to stabilize the American economy that has been forced into an inflationary rate of over 300% since 1970 at the hands of the Federal Reserve Banking system.

**** Remember when a loaf of bread was 10 cents, postage 4 cents, 10 oz can of soup 15 cents, gallon milk 60 cents, 10 ounce bottle cola 5 cents***************???

081607 6:35

Answer 4

What happening now, is pretty simple, European banks are putting 260 billions on the market, and the US about 120 billions, what does it means, is that the world market is getting a plunge in evaluations, to bring our western currency more aligned with China and India... This is a huge moves to consolidate the ownership of the bankers on our real estates (and if you have read machiavelli, you know that owning the land of peoples, is controlling them) as a well as a geopolitical moves to fight emerging economy on the same level... In other words, its the beginning of the end for many emerging countries, and they don`t know it yet...

Answer 5

G8 economies are suffering a liquidity crisis due to their exposure to the US mortgage market.

The Fed and EU Central Banks have created out of thin air nearly $200-billion in the past week to keep what is essentially a bad debt house of cards upright.

This will continue until the consumer inflation caused by the access to this new money slows consumption and brings entire economies into recession or possibly depression.

Answer 6

A good indicator of the results is the reaction on Wall St. The dow dropped 300 points today, indicating that institutional investors have little faith this financial injection will cure our sickening economy. Interest rates are not dropping yet, either. Its a double edged sword, drop interest rates and watch out for inflation; don't and watch housing continue to spiral downward, because consumers have so little to spend to prop up the hyper-inflated market.........

Answer 7

They are trying to stop a recession from occurring by pumping money into our economic system. Because of banks going under and hundreds of thousands, if not millions, of people defaulting or soon to be defaulting on their mortgage obligations, our economy is in danger. Don't worry about the stock market going down a thousand points or so, as it was overvalued.

When the market hits its bottom, then smart investors will go bargain hunting and the market will rise.

Answer 8

That another $80 billion of counterfeit money that went to the international bakers that they can use to buy stock and to pay for the elections of people in political office that will do their bidding. Counterfeit money makes the dollar worth less and less.

Answer 9

I think its time the federal trade commission did an all out full scale investigation of what is exactly taking place. I am not offering this as advice, I am SAYING, IT DEFINITELY NEEDS TO BE DONE.

Answer 10

It doesn't help, it will only delay what must happen anyway! It's just the republicans attempting to help their rich friends like always! Inflation only hurts people that have money,it doesn't matter to the poor!