{"id":157,"date":"2010-08-08T13:09:28","date_gmt":"2010-08-08T17:09:28","guid":{"rendered":"http:\/\/www.cheapiv.com\/?p=157"},"modified":"2010-08-08T16:09:49","modified_gmt":"2010-08-08T20:09:49","slug":"august-surprise-%e2%80%93-qe-2-%e2%80%93-quantitative-easing-2","status":"publish","type":"post","link":"http:\/\/www.cheapiv.com\/?p=157","title":{"rendered":"August Surprise \u00e2\u20ac\u201c QE 2 \u00e2\u20ac\u201c Quantitative Easing 2"},"content":{"rendered":"

Extend and Pretend \u00e2\u20ac\u201c August Surprise \u00e2\u20ac\u201c QE 2 \u00e2\u20ac\u201c Quantitative Easing <\/strong>\u00e2\u20ac\u201c Who comes up with this stuff?
\nAre we on the eve of the next round of manipulation aka \u00e2\u20ac\u0153Extend and Pretend\u00e2\u20ac\u009d ?
\nWill you even know what the financial talking heads will be referring to if this is about to happen?
\nGet ready because they could be back with the next stage of their gambit on Tuesday when the FED meeting concludes and they inform us of our future.\u00c2\u00a0 First off let us translate \u00e2\u20ac\u0153Extend and Pretend\u00e2\u20ac\u009d for you into what it really means: Avoid addressing the problems now and for as long as needed and then pretend that the problem never existed in the first place once memories become hazy.\u00c2\u00a0 Sounds responsible right?
\nWell, since we\u00e2\u20ac\u2122ve started down the path of reality and truth let\u00e2\u20ac\u2122s cover a few things that are a little more challenging.\u00c2\u00a0 You may have heard or read a little something about \u00e2\u20ac\u0153QE 2\u00e2\u20ac\u009d or \u00e2\u20ac\u0153QE Lite\u00e2\u20ac\u009d or about some sort of \u00e2\u20ac\u0153August Surprise\u00e2\u20ac\u009d that the current administration will need to unveil soon to change the negative dynamic that\u00e2\u20ac\u2122s in place in the country ahead of Novembers midterm elections.
\nLet\u00e2\u20ac\u2122s take them one at a time starting with the August Surprise that many are speculating could be unveiled imminently by an Obama Administration that\u00e2\u20ac\u2122s losing support rapidly for its economic policies.\u00c2\u00a0 Outward signs confirm this as this \u00e2\u20ac\u0153Summer of Recovery\u00e2\u20ac\u009d has seen the resignation of two key economic advisors from this administration, Christina Romer and Peter Orszag.\u00c2\u00a0 But back to the August Surprise since nearly everybody likes surprises.\u00c2\u00a0 The most popular rumor goes something like this and by the numbers:
\n1. The Administration\u00e2\u20ac\u2122s Economic Spin isn\u00e2\u20ac\u2122t working
\n2. They are (rightly) perceived to have helped Wall St. in every conceivable way and have actually not done anything (or hurt) Main Street
\n3. All but the hardcore Obama Zombies see and understand this
\n4. So\u00e2\u20ac\u00a6., Since Fannie Mae and Freddie Mac, the dual epicenters for the Housing\/Mortgage Bubbles\/Fraud\/Eventual Collapse were conspicuously absent from the recent \u00e2\u20ac\u0153Financial Reform Bill\u00e2\u20ac\u009d, they can still be hyper-abused as they already have over the past two years
\n5. So\u00e2\u20ac\u00a6., put them to work in some new and ridiculous ways so that Main Street homeowners are bailed out so that they feel better and thus the stock market can be further juiced so everyone feels better even more so once it has been
\n6. Dynamic changed.\u00c2\u00a0 Poll numbers improve. Real solutions to the problems ignored.\u00c2\u00a0 Public then focuses on other things.\u00c2\u00a0 Avoid Democrat annihilation in November.
\nThere are of course variations to this but that is the August Surprise Blueprint in a \u00e2\u20ac\u0153nutshell\u00e2\u20ac\u009d.\u00c2\u00a0 Now let\u00e2\u20ac\u2122s embark on covering the \u00e2\u20ac\u0153QE 2\u00e2\u20ac\u009d.
\nThis does not refer to the Queen Elizabeth or some reduced quality (if that\u00e2\u20ac\u2122s possible these days) Hollywood sequel.\u00c2\u00a0 It refers to quantitative easing.\u00c2\u00a0 If you have no idea what-the-heckenzie that means then\u00c2\u00a0 they\u00e2\u20ac\u2122ve managed to illicit the response from you that they sought to.\u00c2\u00a0 Not surprisingly QE 2 is related to the FED where all things are at least intentionally non-descriptive and cryptic at best.\u00c2\u00a0 If QE 2 does occur in our near future it will be QE 2 because we\u00e2\u20ac\u2122ve already seen QE 1 in the not so distant past when the FED took money from all of us taxpayers, gave it to the greedy Wall St. bankers and corrupt corporations that helped the government to really exacerbate the fine mess they set in motion, and took the risky assets that had lost most of their value and gave them to us in return for our money.\u00c2\u00a0 Voila! Problem solved!\u00c2\u00a0 And with the added benefit of allowing the banks to then take what was our money and loan it back to us at far higher rates than what the FED charges the banks to hold into it!\u00c2\u00a0 This would be funny if it weren\u00e2\u20ac\u2122t true but the only people laughing about this are the con perpetrators and other assorted but connected beneficiaries that just keep on keepin\u00e2\u20ac\u2122 on getting away with it.
\nWe have to bring this to a wrap our editor informs us but we\u00e2\u20ac\u2122d be remiss if we didn\u00e2\u20ac\u2122t provide some sort of definitiony-sounding explanation of quantitative easing.\u00c2\u00a0 So here it is:
\nQuantitative easing is the Federal Reserve going out and buying US government Treasury debt and\/or corporate debt thereby placing enormous sums ($100\u00e2\u20ac\u2122s of Billions and eventually possibly $Trillions) of freshly created dollars into the financial system and economy.\u00c2\u00a0 The government through the US Treasury auctions would have even more cash to throw around into the banking system and the huge corporations would have much more cash on hand at better prices for their debt than they could obtain otherwise.\u00c2\u00a0 With all that extra loot sloshing around in \u00e2\u20ac\u0153the system\u00e2\u20ac\u009d some of it would have to make its way towards spurring the economy forward and of course igniting a stock market rally because what wouldn\u00e2\u20ac\u2122t ignite a stock market rally these days?
\nSee how easy all this really is once you can decode the words that they intentionally try to confuse us with?
\nWe\u00e2\u20ac\u2122ll leave you with this: If a friend of yours that fancies themselves a \u00e2\u20ac\u0153No BS\u00e2\u20ac\u009d kinda guy responded to all that you\u00e2\u20ac\u2122ve just read as if you explained it to him with: \u00e2\u20ac\u0153So basically what you\u00e2\u20ac\u2122re tellin\u00e2\u20ac\u2122 me is that they\u00e2\u20ac\u2122re gonna try to make things look better with a bunch of gimmicks that all involve adding more and more debt even though all the debt they\u00e2\u20ac\u2122ve added hasn\u00e2\u20ac\u2122t really helped.\u00c2\u00a0 They\u00e2\u20ac\u2122re about to give us more of the same and they think that\u00e2\u20ac\u2122s gonna help them in November? Is that what you\u00e2\u20ac\u2122re sayin\u00e2\u20ac\u2122 or did I miss something?\u00c2\u00a0 Well?…
\nHow would you respond?<\/p>\n

\"\"<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Extend and Pretend \u00e2\u20ac\u201c August Surprise \u00e2\u20ac\u201c QE 2 \u00e2\u20ac\u201c Quantitative Easing \u00e2\u20ac\u201c Who comes up with this stuff? Are we on the eve of the next round of manipulation aka \u00e2\u20ac\u0153Extend and Pretend\u00e2\u20ac\u009d ? Will you even know what the financial talking heads will be referring to if this is about to happen? Get […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[81,20,45,15,33,22,47,48,18,35,82],"class_list":["post-157","post","type-post","status-publish","format-standard","hentry","category-commentary","tag-august-surprise","tag-banks","tag-consumer-confidence","tag-consumer-spending","tag-debt","tag-economy","tag-fannie-mae","tag-freddie-mac","tag-institutions","tag-money-supply","tag-obama"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/posts\/157","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=157"}],"version-history":[{"count":0,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/posts\/157\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=157"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}