October 26th, 2012

The Quantitative Easing Strikes Again

The Quantitative Easing Strikes AgainThe quantitative easing we saw this past round has made us ask some questions, but the biggest question of all is whether or not it’s going to be of significant help to our nation. It’s a far cry from really making a difference I can assure you.

Whether or not this round of the quantitative easing will even bring us relief is a whole other question. In the first two rounds it only stimulated spending slightly, but does round 3 make Americans feel comfortable?

I want to talk about the quantitative easing we experienced in round three and what we can experience in the near future.

The Quantitative Easing that Has People Talking

Just in case you aren’t familiar with the quantitative easing from round one, the whole idea beforehand was to mention it to get people confident about spending their money. Most folks believe that printing extra money and putting that into the economy will somehow ease the economy.

In theory it sounds like it would work, but the truth is any amount of money needs to be backed by funding. After all, where does the money come from and how is it supported? This is what we have to ask to fully understand whether or not this easing is actually making anything easier!

This third round is one that history lovers predicted would happen, and ultimately those of us that watch and study the economy on a regular basis knew that it would happen and that it really wouldn’t make a difference.

The Quantitative Easing that Tells All

So, what does this round of the quantitative easing tell us right now? It has us doubtful when we know that Ben Bernanke has made statements of uncertainty about the market and how to fix it. It’s a never ending vicious cycle in this economy no doubt.

When Bernanke made this statement in Jackson Hole, it was a curious thing: “Over the past five years, the Federal Reserve has acted to support economic growth and foster job creation, and it is important to achieve further progress, particularly in the labor market. Taking due account of the uncertainties and limits of its policy tools, the Federal Reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.”

I think the good folks of Jackson Hole were looking for a bit of a better answer but what they got instead was a statement that they should have heard coming from our President. At the end of the day, how does the quantitative easing provide a long term fix, and does it help the job market? No, not at all.

Furthermore, what I really want to know is how does this strengthen our dollar? Is this the fix that we need to build a strong economy? If not, then why are we doing it?

No doubt those gold prices have been at an all-time high which has had people talking for the past three years. The idea that the high gold prices are high because the economy is bad isn’t enough folks. The real deal is that it’s the one currency that is universal, and could be transferred easily into any economy.

Gold is currency, and it’s what you need to have insurance against and unstable economic future. If you are still uncertain as to how this relates to the rounds of quantitative easing, and why we need to pay attention to what is happening with gold, then CLICK HERE now to learn more!




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