FED Watching Oliver Twist --- Please Sir Can I'ave some more?

A new phrase in the lexicon of economics - Twist!

What the hell does it mean and what the hell is it attempting to achieve?





Three links on MSNBC, Bloomberg and FT below explain what this "Twist" is all about.

http://bottomline.msnbc.msn.com/_news/2011/09/20/7858329-to-rescue-economy-fed-gets-ready-to-twist-and-shout

http://www.bloomberg.com/news/2011-09-20/fed-may-extend-duration-of-treasuries-with-operation-twist-survey-shows.html

http://www.ft.com/intl/cms/s/0/bdaf121e-e095-11e0-bd01-00144feabdc0.html#axzz1YWRmXbcU

MY TAKE:

Question #1. Will it assist in JOB CREATION?

Question #2. Will it assist banks in lending to small businesses and potential home buyers?

Question #3. By "bending" the yield curve will it harm or help the economy?

Question #4. Will it simply assist bond speculators and neglect the OMOTS who earns an average household income of about $45,000 to $50,000?

Question #5. Is it yet another GIFT to banks that have SCREWED UP severely and seem not to be taking action on BEHAVIOR MODIFICATION?

The FED has over stepped its mark many times before and has therefore become a dangerous influence in the US economy. If you look at who owns the MAJORITY of the US national debt you will see that it is NOT JAPAN, nor CHINA, but...... wait for it.... the FED!

Yes the FED owns the MAJORITY of US debt, about $5,351,000,000,000 OVER FIVE TRILLION!!

See Link Below ---

http://www.cnbc.com/id/29880401/The_Biggest_Holders_of_US_Government_Debt?slide=16

So ask yourself what will this TWIST really do? It will attempt to make money cheaper and will ensure that people will need more of the stuff. It will encourage banks to take on more debt and people to borrow more.

It WILL NOT create jobs!

It WILL NOT assist in building the falling apart infrastructure in the US!

So when the LSM blabs on and on about how great the FED is as it TWISTS its way toward 2012 and beyond, be very, very skeptical.