Apparently the Fed has decided that their doubling of the monetary base in the last 7 months has done so fantastically, that they’re ready to do more of it.
Some Federal Reserve officials are open to raising the amounts of mortgage and Treasury securities purchase programs beyond the $1.75 trillion that they have already committed to buying, according to minutes from the Fed’s April meeting.
Please pay no attention to the inflation lurking behind the curtain. Our benevolent overlords have everything under control. So, why more monetary loosening.
Officials, meanwhile, projected an even deeper recession than they expected three months earlier and a more sluggish recovery over the next two years as labor markets remain under pressure.
Huh. So much for that “turned the corner’ crap from last month. But that’s OK. because, you see, if you’re in the middle of a bursted bubble cused by overly loose monetary policy in the first place, then the way to get back on track is an even looser monetary policy. That’ll fix you right up, you see.
At least, that’s what the Harvard econo-boys tell us. And they are, of course, the Best and Brightest.
Meanwhile, the DoL reports that weekly claims for unemployment for last week were revised upwards to 643,000, but this week’s numbers were only 628,500. So, that’s a nice little downward tick. Except that we’ve got all those upcoming claims from shutting down car dealerships for Chrysler and GM. Let’s call that 2,000 dealerships with an average of–I’m just spit-balling, here–25 persons per dealership left unemployed. Let’s call it 50,000 new claims ahead.