Why Ben Bernanke Can’t Print Us Out Of the Great Recession

Why Ben Bernanke Can’t Print Us Out Of the Great Recession

FL_PrintingMoney

Policymic – In September, Ben Bernanke announced that the Federal Reserve would be extending its bond buying program in the form of a third round of quantitative easing (QE3). QE is an unconventional form of monetary policy enacted by central banks if conventional monetary policy is not effective. It amounts to, basically, the creation of a pre-determined amount of new money, which is injected into the economy by the Federal Reserve’s bond purchases.

QE has the effect of increasing bank reserves, as well as driving up prices on bonds and lowering their interest yield. So far, it has been an effective method for the Federal Reserve to boost financial markets. Each time it has been enacted,

we have see stock prices increase.

Some say that QE is a necessity to stave off deflation, which would manifest in plummeting prices. As long as stock prices and home values are kept high, QE’s proponents reason, people will be encouraged to spend money and stimulate economic growth. This does not mean that QE is the cure-all to America’s economic woes. In fact, it is anything but a panacea; rather, it is prolonging the fundamental problems that underlie the United States’ economy.

More

 

Get Free Email Updates!

Signup Now to Receive Updates and Alerts!

We will never give away, trade or sell your email address. You can unsubscribe at any time.

@https://twitter.com/candicelanier

Candice writes for several publications, including The Christian Post, Red State, The Black Sphere and Patriot Update. She is the Science & Tech Editor at the Minority Report Blog and the founder and Editor-in-Chief at Front Lines. She's also the founder of Candice Lanier's Tech News and works as a computer consultant. Additionally, Candice is an antiques dealer.

More in

952

Killed in Airstrike: Top ISIS Hacker On Pentagon Hit List Who Threatened Attacks on US Military

Candice LanierAug 27, 2015
The Goldman Sachs & Co. logo is displayed at the company's booth on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, July 19, 2013. U.S. stocks fell after benchmark equities gauges rose to records yesterday, after disappointing earnings from Google Inc. and Microsoft Corp. overshadowed better-than-forecast results from General Electric Co. Photographer: Scott Eells/Bloomberg via Getty Images

Somebody in China Has Set Up a Fake Goldman Sachs and Is Doing Business

Candice LanierAug 27, 2015
hillary organge 1

White House Insiders Track Move From Hillary To Warren

Streetwise_ITAug 25, 2015
940

Legal showdown looms over the NCAA’s ban on paying athletes

Candice LanierAug 24, 2015
trump 081115

The Donald- Not Exactly A Fan Of “New Tone”

Streetwise_ITAug 21, 2015
viewers view emails

EmailGate- The Sisters Have A Question

Streetwise_ITAug 18, 2015

The Minority Report is a network of websites devoted to Conservative & Libertarian politics in the United States. In 2014 the network had over 20 million page views!

On this site you'll find posts & links to some of the best and most comprehensive center-right news and opinion on the net...

Archives

Copyright © 2014 The Minority Report Network