TED Conversations

Robert Winner

TEDCRED 100+

This conversation is closed. Start a new conversation
or join one »

Is operation Twist effective.

The Fed is in the process of buying and selling Treasury Securities in what's being called "Operation Twist." The Fed would liquidate some of their shorter term holdings, maybe out to three years in maturity, and then buy in the longer end, hoping to bring long-term rates down. The move wouldn't put more money in the system, making it an "easier sell for Ben Bernanke" to those in favor of no more stimulus.

On the downside, long-term rates are negligible and that fact has resulted in literally zero job creation.

This is a 267 Billion dollar effort by the FOMC begining 9 March 2013.

Do you believe that monitary policy is the answer to the US ills? Why is the fed the front runner in attempting to resolve the US economic issues?

If you were in charge what would you suggest?

0
Share:
progress indicator
  • thumb
    Mar 12 2013: If I were in charge, I would immediately void all trade treaties (that put Americans out of work). I would talk loudly about tax policies that encourage the wealthiest to move their money and businesses off-shore- taking American jobs with them. I would use the bully pulplit to educate Americans about how the FED came into being, and how SOTUS turned the people's LIMITED Constitutional Republic into an all-powerful government that serves banking. And I would show the documentary evidence that proves that government-sponsored educations are teaching known lies in order to indoctrinate students into idiocy - making them functionally uneducated.

    Then I would put the USA into bankruptcy and convince the people to demand that Congress issue fiat money directly. (Why borrow money with interest attached when Congress has the sole authority to coin money and determine its value? - speaking of idiocy.) I would then fix the amount of money to the population of legal citizens as defined by the 14th amendment. (The gold is probably gone)

    I would sign an executive order that prohibits implementation of all laws regarding commerce within the states (as opposed to between states) in accordance with the WRITTEN constitution. This would allow states to decide whether or not they want to make it easy for small businesses to establish themselves within their borders.

    I would bring home all the troops that are stationed overseas, and stop all spending that explicitly violates the constitution.

    This will create a glut of unemployed people - which will make the state governments unstable unless they adopt pro-business regulations for small businesses. (And by small, I don't mean the FED's definition of 500 employees or less or the wealthiest individuals who are not significant job creators but who get special tax treatment. I mean mom and pop businesses).

    In the chaos that follows, citizens will be forced to cooperate again and communities will come back into being
    • thumb
      Mar 13 2013: Agree or disagree, I congratulate you on an outstanding example of how to answer a question. Nicely done!PS: Would you offer Bernanke a plea-deal in exchange for testimony facilitating the disestablishment of the Federal Reserve System and all of its associated entities?
  • thumb
    Mar 13 2013: In 1961 we tried the same move without the cute name. It yielded a lowering of long-term interest rates of about 1/10th of 1%. We need to restore the Right To Fail in American Business. So long as we (the taxpayers) bail-out failed businesses, including banks, the playing field is not level. The rich get richer, the poor hold steady, and the middle class wastes away. This road we are being dragged down leads, by careful design, to Socialism. If I were in-charge I would move SCOTUS to a surplus Quonsett Hut and put a certified copy of the RATIFIED Constitutiuon on the wall to serve as their ONLY rule of action. I'd put all elected officials on a fixed-price contract salary for the duration of their service which is limited to 8-years max. They can participate in a 401-k retirement program like everyone else. And I would advise POTUS of his, or her, extent of authority and clarify for him and his staff the sure and swift impeachment that will result from overstepping that prescribed authority. Finally I would penalize, by disqualification for a $500 after-tax write-off, any citizen who is qualified to vote in EVERY election but fails to do so.
  • thumb
    Mar 12 2013: Traditionally low interest rates were a signal for business to borrow and invest in their business and for consumers to spend as they would not get much interest for their money. Followed by the reverse. This is market driven and about as elegant as it gets.

    Benny has metastasized into the economy and created a pathology that will not easily be cured, if it is it will talk a whole lot of chemo. With this "Keynesian type system" what is organic to the economy has been tricked by the Fed Fluke (think Dan Dennet)

    In other words hell no.
  • Mar 11 2013: I would suggest getting rid of Ben Bernanke.

    The Fed and the federal government continue with the people and policies that caused the recession. Insanity.

    I definitely would suggest that I should not be in charge.