September 22, 2011
As predicted, the Federal Reserve has decided to foist QE 3 on America, but instead of naming it after its dismal failure siblings, the non-government agency is calling it “Operation Twist,” which is basically twisting the bond yield curve by snatching up longer dated bonds.
Peter Schiff breaks down Operation Twist.
The Fed will purchase $400 billion of Treasuries with maturities between 6 and 30 years before the end of June 2012 and will sell the same amount with maturities of 3 years or less.
“This is an agreement to continue QE2 in a low-grade way,” Tad Rivelle, chief investment officer for fixed income at TCW, told CNN.
Not surprisingly – because the financial elite always tell us stuff way in advance – this represents nothing short of an under-handed attack on pension funds.
“There’s a stealth attack on and I think it’s going to be very bad news for many pension funds,” said Bengt Saelensminde of MoneyWeek. “This is going to hit our pension fund industry hard. Frankly, it’s the last thing the industry needs. I’d go as far as to say that this could be the straw that breaks the camel’s back for many of our already struggling funds.”
The attack against people on fixed incomes and retirees began several years ago in earnest. In October of 2008, Congress’ top budget analyst estimated that Americans’ retirement plans lost as much as $2 trillion in a fifteen month period. Bernanke’s latest bogus effort to “stimulate” the economy will accelerate the pace considerably.
The establishment media admits the Fed is going after old folks: “The Federal Reserve’s ‘Operation Twist’ to bring down bond yields and stimulate the economy is likely to cause pain for the nation’s largest pension funds, already struggling with funding shortfalls from the recent stock market decline,” Reuters reports today.
In order to add insult to pain, the Fed also said there is “significant downside risks to the economic outlook, including strains in global financial markets.”
In other words, QE1 and its sick brother QE2 did nothing beyond expand the money supply and add to the pace of inflation now gaining momentum. As Ron Paul has noted, inflation is created by the private bankster-owned Federal Reserve and represents a hidden tax on the American people.
In addition to sabotaging pensions (and lowering the life expectancy of millions), the Fed is once again gifting the hedge fund racketeers who are increasingly getting retirement fund allocations to take bigger risks to offset lower fixed portfolio returns, as Money Morning notes.
Instead of merely calling this thing “Operation Twist,” let’s call it “Operation Twist and Shout” because by the time the Fed and the globalists are finished with us, we’l
This article was posted: Thursday, September 22, 2011 at 1:44 pm