You have probably heard all of the fuss around people asking, “What is QE3?” People want to know what it means and why it matters. At the end of the day I have to tell you that there is nothing more important than understanding the financial position of our country as a whole, and what we can do to change it. Can it be improved?
In theory, QE3 should work, right? However, at the end of the day it all comes down to one thing. That one thing is that we cannot simply turn on the printing presses in order to fix our economy. With that being said, what do you believe could change the economic state we are in?
What is QE3 For?
The biggest question that many working folks have is what is QE3 for anyhow? Simply put, it’s designed to help the country get into better shape financially by printing more money to put into the banks, and to put into the economy to help give it a boost.
We have seen in the previous rounds of quantitative easing that it’s a short-term fix, and NOT really a way to fix anything at all. All that really happens is the printing of money to keep people happy and believing that things are getting better when in fact they really aren’t. Is it possibly only to “buy” time?
I know that I have used that phrase often, and at the time I used it, I was so sure that I could buy time for myself when I was in a sticky situation. I think back on when I made that statement and why I made it. Time is a gift really, so how can a gift be purchased? In reality it cannot be purchased, but just lived out.
What is QE3 Going to Do to Help America?
While one would think it’s okay to stimulate the economy by printing money, keep in mind it’s the doing of the central banks. Granted, Bernanke said it’s the only option we have at this time until we figure something out. The scope of this problem we have economically is far too great for anyone to figure out. However, I think most people just need to know if it’s going to help at all.
What is QE3 going to do to help America? In short, interest rates get reduced to help spur the economy. Remember, lower interest rates are what motivate people to spend money in the first place, and even if it only applies to their credit card, they will use it regardless.
The rates have been cut as far as they can, so the only option left is to do another round of quantitative easing. So “what is QE3” going to do for us? That’s a tough answer other than not much except to temporarily stimulate the economy to see if positive change could still be around the corner.
The long term result is that the US dollar will be devalued when no one buys our treasuries. After that the only choice we will have is gold.
To find out why gold is so critical in answering, “What is QE3?”, CLICK HERE now.
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