Comments on: When is it the Fed’s cue to leave? http://blogs.reuters.com/great-debate-uk/2010/11/05/when-is-it-the-feds-cue-to-leave/ Tue, 18 Jun 2013 13:34:41 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: CactusLand http://blogs.reuters.com/great-debate-uk/2010/11/05/when-is-it-the-feds-cue-to-leave/comment-page-1/#comment-12926 CactusLand Tue, 09 Nov 2010 03:30:58 +0000 http://blogs.reuters.com/great-debate-uk/?p=8729#comment-12926 There is no exit strategy, the only exit is currency destruction. Here is a good article on how this came to be and what the solution is www.thecactusland.com There is no exit strategy, the only exit is currency destruction. Here is a good article on how this came to be and what the solution is http://www.thecactusland.com

]]> By: Rathmullan http://blogs.reuters.com/great-debate-uk/2010/11/05/when-is-it-the-feds-cue-to-leave/comment-page-1/#comment-12909 Rathmullan Mon, 08 Nov 2010 14:23:07 +0000 http://blogs.reuters.com/great-debate-uk/?p=8729#comment-12909 Congress needs to revisits the FED's mandate, Besides price stability and full employment, maybe the FED should also be charged with managing risk in the form of excess leverage (including government debt). The FED's mandates are too narrow. They aren't even allowed to recognize the significant deleveraging that is necessary in order to return the economy to a stable base from which to return to healthy growth. As a result, we're left with a FED pursuing short term policy initiatives that are contrary to free market equilibrium and that tend to excacerbate "boom bust cycles". Congress needs to revisits the FED’s mandate, Besides price stability and full employment, maybe the FED should also be charged with managing risk in the form of excess leverage (including government debt).

The FED’s mandates are too narrow. They aren’t even allowed to recognize the significant deleveraging that is necessary in order to return the economy to a stable base from which to return to healthy growth. As a result, we’re left with a FED pursuing short term policy initiatives that are contrary to free market equilibrium and that tend to excacerbate “boom bust cycles”.

]]> By: dratman http://blogs.reuters.com/great-debate-uk/2010/11/05/when-is-it-the-feds-cue-to-leave/comment-page-1/#comment-12891 dratman Sun, 07 Nov 2010 20:47:56 +0000 http://blogs.reuters.com/great-debate-uk/?p=8729#comment-12891 "Quantitative easing" is begun when the central bank has no further leverage using ordinary techniques in the money markets. Of course it's risky, but the economy is at high risk right now anyway, just by inaction. What else can the Fed do? The Republican-bound legislature has refused to pass any additional spending measures necessary to get the wheels lubricated. Would you rather Bernanke do nothing at all? “Quantitative easing” is begun when the central bank has no further leverage using ordinary techniques in the money markets. Of course it’s risky, but the economy is at high risk right now anyway, just by inaction.

What else can the Fed do? The Republican-bound legislature has refused to pass any additional spending measures necessary to get the wheels lubricated. Would you rather Bernanke do nothing at all?

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