Barack Hussein Obama is usually called the first 3rd World President of America. Now it seems Fed Chairman Ben Bernanke is also joining the 3rd world bandwagon. He has announced a new plan to buy $600 Billion of US government debt. This is m just really printing money to liquidate debt. This tactic has failed everywhere it was tried. Many Latin American governments did this in the 80’s and the result was a lost decade that lead to increase poverty and hyperinflation. This is dangerous and shows the extent of the stagnant economy.
The Federal Reserve Wednesday unveiled a controversial new plan to buy U.S. Treasurys, hoping to spur growth in a disappointingly slow U.S. economy.
After two days of discussions, Fed officials decided to go ahead with a much anticipated program, saying they will buy $600 billion of U.S. government debt over the next eight months.
[….]
By buying government bonds, the Fed aims to keep long-term interest rates low, hoping it will lead consumers to spend and companies to invest more, thus helping to propel the economy forward. Short-term interest rates were slashed close to zero in Dec. 2008, so the Fed no longer has its traditional weapon to boost the economy.
Read the rest: Fed to Buy $600 Billion of Treasurys
This is 3rd world style economics and de facto currency devaluation. It’s a risky gimmick and one that has failed many times over.
Tags: Ben Bernake, Federal Reserve, US Debt
