What Does $145 Million Per Hour Buy?

 March 11, 2013

If you though the President and Congress were spending a lot of money ($3.6 trillion per year), you may not realize that the Federal Reserve (Chairman Bernanke et. al.) is also printing and distributing $147 million dollars per hour 24/7 to the major banks (including foreign banks with domestic branches).


The banks are using this money to increase assets, reduce reserve requirements and buy assets (including equities, bonds and commodities). This is one way to help the banks and lift the stock market which then reinforces the assumption that we are out of recession and the economy is growing.

This program (increase debt to get out of debt) by the Federal Reserve is being touted by government economists and most of the media as courageous and beneficial. Here is what it brought us in the 4th quarter. Federal Reserve spending over $300 billion, GDP up $5 billion and a growth rate of 0.01%.

Stay on your toes,