Friday, November 05, 2010

Quantitative easing

The hot term for the monetary policy of the Pres. Barack Obama administration is Quantitative easing. A UK newspaper desribes it:
Quantitative easing is the modern way to print money. The central bank doesn’t actually have to use a four-colour press to spew out crisp notes. There are more sophisticated ways to boost a nation’s money supply. But ultimately the impact is not very different from dropping dollar bills from a helicopter as Ben Bernanke once described this policy before he became the Federal Reserve’s chairman.
I never heard of this. Apparently it has previously been used in Japan, but it has never actually worked anywhere. This makes our dollars less valuable, and there is nothing that the tea party can do about it.

According to this, it is all a plot to create a new stimulus plan, and spend money without approval from the Republican Congress.

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