Quantitative Easing 2 QE2
Published / Last Updated on 03/11/2010
by Ashley Clark, Director
The US Federal Reserve has confirmed that it will inject a further $600bn (£373bn) into the US economy by the end of June next year.
The US has already “injected” $1.25trillion into the economy to stimulate as more of the same stimulus.
The injection has been called for to further stimulate the economy in the US although we see this as a discrete to move to weaken the dollar and this make it good and services cheaper overseas. Or put it another way, to make imported goods more expensive.
The Dow Jones rose on ths back of this news and we again see this as a long term objective by many western economies to manufacture inflation to devalue long term government without ever repaying the debt.
What is Quantitative Easing?
It is a means of government introducing liquidity into the economy by "buying back" previously issued government debt. In short, printing money to pay off your debts.
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