Why the New Fed Stimulus Won't Jumpstart the Economy - and What Would
Ellen Brown @ Truthout - The Fed's announcement on September 13 that it was embarking on a third round of quantitative easing (QE) has brought the "sound money" crew out in force, pumping out articles with frightening titles like "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. Read more.
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. Read more.
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