How much assets and treasuries do The Fed have?

The Fed's AssetsI came across an interesting article in this month’s Smart Money Magazine discussing how the end of QE2 at the end of June will affect the markets.

The articles seemed to indicate that The Fed does not plan on QE3. I have a different opinion about QE3. When QE2 ends in June, bond yields should rise. The 10-year treasury currently yields 3.4%. That yield should rise to well above 4.0% without the number one buyer of treasuries participating in the market.

As interest rates rise, the government’s cost of borrowing will begin increasing, making interest payments as a percentage of GDP much greater (and frankly alarming), further exacerbating the U.S. government’s borrowing problems. Since the The Fed has substantially monetized the government’s debt over the past four years, what makes anyone think that they will suddenly stop?

What would happen if the 10-year treasury hits 5%? Would The Fed step in at that point and announce QE3? Would The Fed finally let the market dictate interest rates or will they continue to artificially keep them low to encourage the U.S. government to borrow even more money? Will Congress really pass a long-term debt reduction bill? If 10-year yields rise to 5%, mortgage rates on a 30-year mortgage will also have to rise from 5% further hurting the real estate market. It will be an interesting summer for markets.

Here are the interesting stats. In March 2007, the amount of assets held by the Federal Reserve was $899 billion.  In March 2011, the amount of assets held by by the Federal Reserve is $2.5 trillion.

New Politics for a New Generation

Hello all. Today is my first day writing my column for The Political Movement. My name is Joe Piperato and I come from the commonwealth of Pennsylvania. I have been asking people all week, what the other three commonwealths in the nation are, and I can only ever get Virginia out of them. Believe it or not, Kentucky and Massachusetts are both commonwealths as well. Just thought that it was a nice little slice of trivia. I will have to do some more research on the issue because I am uncertain as to why these four are commonwealths and the rest are considered states. I study business at East Stroudsburg University and I have been extremely interested in politics and current events for some time now. I am writing to hear feedback and insight thoughtful discussion. I feel that the best way to learn is to listen, especially to opposing viewpoints.

Ok, enough on that for now. This week in Washington has people everywhere scratching their heads and wondering what the next phase in this budget situation will be. Like millions of others I’m sure, I frantically rushed home to see the presidents speech on Wednesday afternoon. I was extremely disappointed in his demeanor and rhetoric. I was expecting our Commander in Chief to address the nation on our ever-increasing debt, our failing government agencies and a way in which to bring jobs and successful business back to the United States. Instead, he simply blamed the wealthy, expressed his discontent with the Bush tax cuts and told the nation that the $38 billion budget cut will save us $750 billion over twelve years. Unfortunately, $38 billion times twelve years, only equals $456 billion. He threw around a few other “fuzzy” numbers throughout his speech and I will get into that in my next article. Our President said, “Everybody pays, but the wealthier have borne a little more.  This is not because we begrudge those who’ve done well -– we rightly celebrate their success.  Instead, it’s a basic reflection of our belief that those who’ve benefited most from our way of life can afford to give back a little bit more.”

I don’t believe this way. This says to me that we want the upper class to pay for our nations heavy financial burden. The quote is a contradiction. Now don’t get me wrong, I believe that helping people is a good thing and there is no greater good than giving back. However, President Obama loves bipartisan politics, as long as it falls on the liberal side of things. No one is going to like the decision we come to and a compromise is absolutely necessary. I just see our President trying to start a cultural disagreement and link himself again to his voting base. It really is a disagreement of the fundamental core values of what truly makes us fiscally liberal or conservative. I personally believe that we need to cut many of the hundreds of unnecessary government run agencies, contract out to more private businesses, find a way to make it realistic to lure outsourced companies back to the United States and bring the dollar back onto U.S. soil. I can guarantee that the opposition disagrees.

In my next article, I am going to research some of the numbers that our President threw around in Wednesday’s speech. I will begin to expand on why I believe unions and outrageous labor costs have destroyed our economy and I will review the mess that we are “not” involved with in Libya.

- Joe Piperato

Peter Schiff Slamming Ben Bernanke

The U.S. Dollar has hit an all-time low, commodity prices are soaring, our cost of living is increasing, and our standard of living is decreasing, yet this was planned by The Fed and Ben Bernanke to create jobs and help real estate. That’s a laugh. All QE1 and QE2 has done is screwed this country over even more. Bernanke should listen to Peter Schiff. Bernanke is nothing more than a crack dealer for the U.S. government’s spending addiction.

Donald Trump 2012 Political Cartoons

Check out these hysterical Donald Trump 2012 GOP run political cartoons. As you can imagine, most of the political cartoons deal with Trump’s hair. I really like the one where Donald says to his board that he’s looking for a new piece of property in Washington with the White House pictured.

Donal Trump says that he’s seriously considering a run for the presidency in 2012 and that he should make his official announcement on whether he’s officially running before June. I can’t wait for the announcement. The latest poll results are giving The Donald a substantial lead. Trump has 26 percent of the votes, followed by Mike Huckabee at 17 percent, and Mitt Romney at 15 percent.

Check out these political cartoons.

Quantitative Easing = Printing Money

Great segment on quantitative easing from The Daily Show. First, Ben Bernanke denies that quantitative easing is printing money and then admits quantitative easing is printing money in another interview. This is great.

China Takes Over World Commercial

Even see the commercial which shows a teacher in China in 2030 once China has taken over the world? At the end it says “and now they work for us.” Scrary. Stop government waste. Share the video.

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How did The Huffington Post become so popular?

The Huffington Post PopularityThe Huffington Post, the liberal counterpart to the conservative Drudge Report. How did it become so popular? How did a website that began in just 2005 go main stream and become the most popular liberal news source?  I sought out the question to this and came across some interesting details.

The Huffington Post receives about 18 million visitors per month. How did they get that kind of traffic? They developed partnerships with other massive websites such as TMZ.com, The Rolling Stone, Variety, and Yahoo. They also had guest contributions from liberal voices such as Barack Obama, Madonna, and Michael Moore.

They were also a well financed operation, receiving $5 million in 2006. In 2008, they also received an additional $15 and $25 million contributions from a fundraiser and investment partner.

So how did The Huffington Post become so popular? First, they were passionate about their craft. They started out well financed. They wrote good content (if you’re liberal). They formed great partnerships and they got great contributions from hugely popular political voices. They also continued to innovate — launching local versions of their newspaper for areas such as New York, Chicago, and Los Angeles. Then once they became popular, they delivered more content to their readers in areas such as entertainment, sports, and business to appeal to a much wider base.

It also didn’t hurt that The Huffington Post’s editor, Arianna Huffington, capitalized off of the later years of President Bush’s second term to energize the liberal fanbase.

Marco Rubio’s Full Campaign Victory Speech

Marco Rubio won his US Senator bid last night for the State of Florida. Rubio is a promising young star for the Republican party. Rubio is an American-born son of Cuban exiles who fled the country during Fidel Castro’s rise to power. Rubio not only makes Cuban-Americans and other Hispanics proud, but after watching this phenomenal campaign victory speech, he makes all Americans proud. Rubio is described as the most pro-taxpayer legislative leader in the country and will be the conservative voice in the Senate that this country needs.

Who is Marco Rubio? You can find out more on his website. In the mean time, watch his incredible campaign victory speech.

Marco Rubio Senate Victory Speech

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Obama Golf Joke

Why does Obama play golf so much?

So he can claim that he saved or created more jobs than his handicap.

Obama Golfing Pictures:

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Collection of BP Oil Spill Political Cartoons