Key members of the five-man Board are quietly mulling a fresh burst of asset purchases, if necessary by pushing the Fed's balance sheet from $2.4 trillion (£1.6 trillion) to uncharted levels of $5 trillion. ...
Gabriel Stein, from Lombard Street Research, said the US is still stuck in a quagmire because Mr Bernanke has mismanaged the quantitative easing policy, purchasing the bonds from banks rather than from the non-bank private sector."This does nothing to expand the broad money supply. The trouble is that the Fed does not understand broad money and ascribes no importance to it,"he said. The result is a collapse of M3, which has contracted at an annual rate of 7.6pc over the last three months.
Mr Bernanke focuses instead on loan growth but this has failed to gain full traction in a cultural climate of debt repayment. The Fed is pushing on the proverbial string.
Translation: Helicopter Ben Bernanke thinks the depression can be fixed by throwing even more money at banks. He is going to create trillions in new debt that will do nothing to fix the crisis we are in.
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