“Quantitative Easing” Inflation Fuse was Lit Yesterday

by Ryan on November 4, 2010

in Economy,Election 2010,Health Care,Media Bias,Politics

With all the highs and lows of the last few days, a news story which seemed to have been buried by all but a few news outlets was the Federal Reserve’s decision to buy $600 billion in government bonds, with the room to buy up to $900 billion if needed.  This “quantitative easing” is an attempt to stimulate the economy by increasing the money supply, used primarily when interest rates are too low and few are biting in order to prod investors back into the market.

Even my public school students understand the basic concept that the more there is of something, the lower its value.  So, the Fed just told us that they’ve chosen to take a ride on the inflation train in hopes that this next type of near-trillion dollar stimulus will do the trick this time?

This kind of stuff never ends well.

Stimulating business and investment in this economy seems very easy to me:  repeal those highly subjective and labyrinthine Obama Care mandates while stabilizing tax rates for business, higher income earners, and capital gains.  If the field is predictable, investors will act without prodding.  It’s not brain surgery, but it is nearly impossible with this crew in the White House.

{ 1 trackback }

Fed Pumping Scorned by China, Russia | Axis of Right
November 8, 2010 at 4:58 pm

{ 0 comments… add one now }

Leave a Comment

You can use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Previous post:

Next post: