Fed News Friday: QE2 Doesn’t Equal BFF’s

November 5th, 2010

Two recent countries have already voiced their criticisms against the 2nd round of quantitative easing.  Only one day after the release of this news and we are already hearing the dissent of the people not only here in our country but around the world.  Below are some comments from leaders in Germany, China, and South Africa:

German Finance Minister, Wolfgang Schäuble- “I don’t think they are going to solve their problems that way,” Schäuble told German public broadcaster ZDF in a Thursday evening interview. “They have already pumped an endless amount of money into the economy via taking on extremely high public debt and through a Fed policy that has already pumped a lot of money into the economy. The results are horrendous.”

China’s Central Bank head, Zhou Xiaochuan-”If the domestic policy is optimal policy for the United States alone, but at the same time it is not an optimal policy for the world, it may bring a lot of negative impact to the world.”

South Africa’s finance minister, Pravin Gordhan- “…developing countries, including South Africa, would bear the brunt of the US decision to open its flood gates without due consideration of the consequences for other nations.”

With the lack of support on international levels, you can expect for domestic support to decline as well.  Does this matter?  Can the public change the coming surge of money out of thin air into the system? Not a chance at this point.  The Fed expects that their $600 Billion increase in money supply will improve the job market which will then improve the economy.  Well, you can’t create jobs without losing others.

The Fed is treading in unknown waters.  The only other option for them was lowering interest rates, but you can’t get any lower than zero folks.  The first batch of QE wrapped up in March and considering we are moving into the 2nd stage of QE, it must have been ineffective.  But, why not just try it again right?  This is their last line of defense against an artificial monster (boom) they created.  Our failing economy is Frankenstein and Ben Bernanke is Victor Frankenstein.

I am not surprised by the reactions from other countries, however one would hope it would show the Fed their big money ideas are going to do nothing but make the dollar lose its “big money” reputation and value all together.  More on the release of the funds next week, until then…


About the Author: megan

Megan is the Marketing Manager for Silver Circle who spends endless amounts of time on making sure the word gets out about this film and graphic novel! As a liberty activist since '08 she also has gained a passion for advancing liberty in her personal life and helping others to do the same. Questions about getting involved with the film, events, liberty, and hip-hop can go straight to her!