QE 3....HERE WE COME!

They call it quantitative easing.  The reason they do that is so it sounds really smart and beside that not one person in one thousand has any idea what it is.

The Federal Reserve’s open-ended effort to jumpstart the economy could top $1 trillion, dwarfing the central bank's last bond-buying sprees, a Wall Street economist said Friday.

The Fed’s move to purchase $40 billion per month of mortgage-backed bonds indefinitely has drawn its share of detractors and skeptics. Yet Diane Swonk, Mesirow Financial’s chief economist, told CNBC’s “Squawk Box” that she believes the Fed’s third round of quantitative easing will buttress the economy.

“I think this will end up being a trillion-dollar commitment by the Fed,” Swonk said, adding that the eventual price tag of QE3 could exceed that of the $600 billion expended on QE2 —provided the Fed continues its efforts for at least two years.

“They could even up their game again and do some compensating for [Operation] ‘Twist’ by the end of the year” by coupling QE3 with their existing bond-buying program, Operation Twist.

He also warned that more bond buying could lead to another surge in oil and other commodities.

Here;  http://www.cnbc.com/id/49035646

Uh-oh....there is the warning about inflation....they call it a surge in oil and commodities prices.

Me;  "Excuse me Mr Fed....question?...I'm in the back row....thanks for calling on me....If the FED has $40 billion to spend every month indefinitely, why wouldn't you just transfer all that money to the U.S. government so we don't have to borrow all the billions and trillions from foreign governments, many of whom don't really like us and would like to see us collapse in anarchy?"

FED: "Yes, thank you...that is a great question....we call it quantitative easing and it's a process in which we quantitate the mortgage back securities and then we delineate the derivatives so that we can have fiscal results that are primary to our purpose of kick starting the economy."

Me;  "So does that mean you DON'T have any money...and that this is really just a big Ponzi scheme that is going to collapse around us like soggy sweat pants in the rain?  Are you just making up all those words?"

FED  "Let me direct you to some real news...have you seen Princess Kate's topless photos?  Please check them out so that we can get on with fixing the thing-a-ma-jig.  Thank you all for coming!"