By Greg Hunter’s USAWatchdog.com
The Fed made it official, this week, with continuation of money printing to infinity. The Federal Reserve is now engaged in $85 billion a month in pure QE. It is continuing to buy the sour mortgaged-backed securities at a rate of $40 billion a month from the big banks, and it is now directly buying $45 billion a month of U.S. government debt. The Fed says it is to spur employment, but my sources say it’s propping up the banks and the government at the expense of the dollar.
The so-called “Fiscal Cliff” of tax increases and spending cuts are staring us all in the face. The President says “one way or another, taxes are going up.” He thinks the GOP will fold and give him higher rates, but I would not be so sure. Why doesn’t either party talk about this ongoing banker bailout the Fed is conducting? We could save a lot of money there couldn’t we? The best we could hope for is a can kick into next year. I just do not see a grand deal by December 31st.
What I do see are plenty of employers cutting people back to less than 30 hours a week and laying off people to avoid the requirements of Obama Care. Look for unemployment to spike next year. The only reason why it’s going down in the official government numbers is because hundreds of thousands are no longer counted in the work force every year.