A third round of quantitative easing (QE3) announced by the US Federal Reserve on September 13 grabbed the media headlines worldwide. What Quantitative Easing Is About The term “quantitative easing” is a recent addition…
Tag: QE3
The Fed Now Owns Your Foreclosed Property Under QE3 Purchases of Toxic Assets On ABC’s “This Week”, George Will, columnist for the propaganda news outlet Washington Post, spoke out against Ben Bernanke, Chairman of…
The economy could use a good dose of “aggregate demand”—new spending money in the pockets of consumers—but QE3 won’t do it. Neither will it trigger the dreaded hyperinflation. In fact, it won’t do much at all. There are better alternatives. The Fed’s announcement on September 13, 2012, that it was embarking on a third round of quantitative easing has brought the “sound money” crew out in force, pumping out articles with frighting titles such as “QE3 Will Unleash’ Economic Horror’ On The Human Race.” The Fed calls QE an asset swap, swapping Fed-created dollars for other assets on the banks’ balance sheets. But critics call it “reckless money printing” and say it will inevitably produce hyperinflation. Too much money will be chasing too few goods, forcing prices up and the value of the dollar down. All this hyperventilating could have been avoided by taking a closer look at how QE works. The money created by the Fed will go straight into bank reserve accounts, and banks can’t lend their reserves. The money just sits there, drawing a bit of interest. The Fed’s plan is to buy mortgage-backed securities (MBS) from the banks, but according to the Washington Post, this is not expected to be of much help to homeowners either.
10 Shocking Quotes About What QE3 Is Going To Do To America Ready or not, QE3 is here, and the long-term effects of this reckless money printing by the Federal Reserve are going to…