Monday, November 15, 2010

Quantitative Easing, aka, Bad Monetary Policy

Quantitative easing is a nice way of saying "print money with no backing." Pumping a second round of cash -- $600 billion worth -- into the economy is a desperate tactic of trying to fix years of failed monetary policy. The Fed continues to make one mistake after another.

QE2 will have only a negative impact on the US economy. There might be a short-term boost in the markets but the markets know that it is financial hocus pocus.

The federal government is taking no real positions and is implementing little policy to build business and investment confidence. Everyone if fearful of higher taxes and greater entitlement yielding sickly fruit.

The US government's size and its debt appears to have reached that tipping point where it begins to crash down on itself.

Washington craves -- we all crave -- adult leadership. Politics are killing us and will continue to do so as long as we have spineless congressional leaders and a spineless president.

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