PLEASE MR. BERANAKE I DON’T WANNA GO

QE I know you have heard the term but have you ever looked at what it is actually doing vs what the stated purpose was.

They said they would keep it up till unemployment rate went down only problem is the 85 billion is not getting into the economy .  Why? Because half of the money is being used to buy up junk derivative packages from the banks at market value ( a phony number) which means they are paying full price.  This is just to get the bad debt off the banks books.  The other half buys treasuries to lower interest rates which were already really low when they started.   So there has been no real change in unemployment as shown by the graph from Shadow Stats.

Image

The blue line is our current unemployment rate shown based on the original way to count the unemployed.

So the question of the day is, how does this 85 billion not count against the deficit everyone in worried about?

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