The Federal Reserve's $4.3 trillion ticking time bomb

As usual forky presents irrelevant data

He shows a graph (and he has shown this graph before) that compares 23 months or 64% of his tenure and compares it 36 months 100% of Republican tenure & tries to present it as apples and apples. Once obama completes his reign of error he will have doubled the debt.

Speaking of debt. Reagan in 8 years increased the deficit by $1.8T. obama almost accomplished that number in 2010 alone. $9T is significantly worse than $1.8T

Dude, when I wrote "And it turns out Bush gets a really bad rap when you compare him with Reagan," I was comparing Bush with Reagan. And both were in office for eight years, so you know, apples to apples.

I thought that was obvious.

The funny thing is this is through January 5 2015 or approximately 75% of Obama's two terms.

DonDiego cautions the reader not to confuse Federal Reserve activities with the growing annual Deficits or the National Debt.

The Federal Reserves "purchase" of $4.5-billion US-bond debt is called Quantitative Easing [QE]. QE is really just a monetary function by which the Fed holds bonds and the private sector banks increase their reserves.
The intent is to increase borrowing, because of lower interest and higher reserves, and thereby increase economic activity.
The goal also includes increasing inflation, . . . also to stimulate growth - figuring if prices are rising folk's'll buy sooner before they rise more.

Unfortunately, all this is not an exact science and significant growth has not resulted and inflation remains tame.

And the potential negative effects are now becoming actual effects.
Twp f'rinstances:
__Most private retirement funds are established with an expectation of an average return of 8%; if the available investments return less than that for a long enough interval these funds will be unable to pay out the "promised" benefits as retirees reach retirement age. That limit is rapidly approaching.
__Because of the low interest rates available, many large, stable, conservative investment funds, which would normally have a high allocation of bonds in their portfolio, are now investing in stocks for higher returns through capital gains; hence the stock markets are at historically high levels relative to fundamentals like earnings. The potential for a decline to the norms is growing; if/when there is a rush-for-the-exits things could get a might testy.

DonDiego says "Don't worry, be happy."