Bernanke ticking off another inflation trick- buying Treasury securities

December 3rd, 2008

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Remember, back in Bernankeism and hyper-inflation, we had a list of Ben Bernanke’s ‘unconventional’ (read: crazy) schemes to fight deflation. One of the schemes was already implemented (see Bernanke ticking off another inflation trick- becoming a business lender). That’s one tick in the list. Another scheme in the list is

Purchase of long-term US Treasury bonds.

Today, we heard news that Ben Bernanke is suggesting just that. As reported in Bloomberg,

Bernanke yesterday said he may use less conventional policies, such as buying Treasury securities, to revive the economy, because his room to lower the main U.S. rate from the current 1 percent level is ?obviously limited.? Even so, reducing the rate is ?certainly feasible,? he said.

Watch this space.

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