Monday, December 6, 2010

Its about exitus, not exit

Fed's $600 Billion Credit Easing May Complicate Stimulus Exit, Lacker Says

Federal Reserve Bank of Richmond President Jeffrey Lacker said the purchases of $600 billion in U.S. Treasuries risk spurring inflation in a few years and may make it harder for the Fed to eventually withdraw the stimulus.
“Further balance sheet expansion now could require more rapid balance sheet reduction later on, complicating the withdrawal of monetary stimulus when it becomes necessary to maintain price stability,” Lacker said today in a speech in Charlotte, North Carolina. “It is appropriate” to regularly review the purchases, he said.
Policy makers meet next week to review their plan to buy Treasuries through June and expand record stimulus in a bid to reduce 9.8 percent unemployment and keep inflation from dropping.
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Comment: Who says that an exit is planned? The plan to destroy America calls for one stimulus after the next as long as it takes to bring the economy fully down. The game is about exitus, not exit.

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