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Why QE3? Because Bernanke Says 25 Million Unemployed is a Tragedy

Edges Wrote: Sep 02, 2012 2:09 PM
The FED lends the money to the US Government. The US Government packages this into a "treasury bill" and sells it to a bank, promising a certain amount of interest. The FED then buys the treasury bill from the bank. So, the FED creates money out of thin air, lends the money to the government, and then buys it back with interest. Q3 is a great idea - for the FED!
Fed Chairman Ben Bernanke said that the Fed would probably engage in another quantitative ease. This is the third time since 2009 that the Fed has engaged in a radical maneuver to stimulate growth in the economy.

Except it never works. All it does is devalue the money that you have, and artificially inflate the prices of hard assets you own.

Chump reporters yesterday parroted the, “Dow Jones Industrial Average was up on the news yesterday by 90 points.”, without thinking about why. The reality is the Fed is out of bullets and yesterday’s announcement will do nothing...

Related Tags: Tragedy