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Fed Will Be Forced to Print Money Again Soon: Morgan Stanley
Friday, January 6, 2012 14:40
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Published: Thursday, 5 Jan 2012
By: John Carney
Senior Editor, CNBC.com
Senior Editor, CNBC.com
Morgan Stanley is predicting that the economy will slow dramatically in early 2012, which it thinks will prompt another round of Fed asset purchases.
The economy has picked up recently, Morgan Stanley [MS 16.061 
-0.219 (-1.35%) 
] says, because energy prices have dropped and the world has unwound negative shocks from the tsunami-nuclear catastrophe in Japan. As this unwind runs out of steam, growth will slow to around 2 percent, Morgan Stanley's chief economist argues.
The Fed, however, will not act quickly or decisively because of internal disputes. We'll see hawks battle doves until, finally, everyone comes around to the idea that the Fed needs another round of quantitative easing sometime between March and June of 2012.
As Business Insider says, that's a "super specific" call. If Morgan Stanley gets it right, that'll be a huge gold star on his CV.
The huge amounts of money created in the past, was not printed. Just like Berni said he was not going to print a bunch of money.Instead he created digidollars.That is the new world order currency. Digidollars are easy. Just push the ole button and WALAH! we have money. What a wonderful thing. We can’t afford to print that much money. I goes to say our money ain’t worth the paper it’s printed on.I can’t help but wonder how long it would take to print a trillion dollars with our current printing presses running full tilt.Also how much wood pulp and cotton would be needed.By golly it might even put the paper industry back in the black.Could we call this a green technology?