Another shot of economic methamphetamine from the Fed:

Fed Pulls Trigger, to Buy Mortgages in Effort to Lower Rates

The Federal Reserve fulfilled expectations of more stimulus for the faltering economy, taking aim now at driving down mortgage rates.

The Fed said it will buy $40 billion of mortgages per month in an attempt to foster a nascent recovery in the real estate market. The purchases will be open-ended, meaning that they will continue until the Fed is satisfied that economic conditions, primarily in unemployment, improve.

Enacting the third leg of quantitative easing will take the Fed’s money creation past the $3 trillion level since it began the process in 2008.

One can go back in American history and find repeated episodes of inflationary policies to attempt to revive and overcome economic difficulties. Based on the historical record (even ignoring cases of foreign inflationary experiences like Zimbabwe, Wiemar Germany, and others) from the 1770’s on, inflationary policies have ultimately failed every time they have been tried.

It’s worth recalling Einstein’s definition of insanity as expecting a different outcome from repeating the same procedure over and over again.

By that definition, our current liberal financial managers are a perfect casebook illustration of the Michael Savage observation that “Liberalism is a mental disorder.”