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To: blam

For other dummies like me.

What Does Quantitative Easing Mean?

A government monetary policy occasionally used to increase the money supply by buying government securities or other securities from the market. Quantitative easing increases the money supply by flooding financial institutions with capital in an effort to promote increased lending and liquidity.

Investopedia explains Quantitative Easing

Central banks tend to use quantitative easing when interest rates have already been lowered to near 0% levels and have failed to produce the desired effect. The major risk of quantitative easing is that although more money is floating around, there is still a fixed amount of goods for sale. This will eventually lead to higher prices or inflation.

http://www.investopedia.com/terms/q/quantitative-easing.asp


8 posted on 09/29/2010 7:16:02 AM PDT by faucetman (Just the facts ma'am, just the facts)
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To: faucetman

Too bad the sheeple either don’t understand or don’t care that these games by the Fed are the ONLY thing propping up these completely bogus stock market valuations.

People are going to remain willfully blind to all of this, refusing to recognize the unsustainability of it all or even realizing that these antics are making things worse, until it all blows up. And when it does, they’ll all be wandering around their burning cities, either watching or participating in the riots, wondering what the hell happened.


10 posted on 09/29/2010 7:31:41 AM PDT by Zeddicus
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To: faucetman
What Does Quantitative Easing Mean?

See:
Decline of the Roman Empire
Inflation in the Weimar Republic
Argentine economic crisis (1999–2002)
Hyperinflation in Zimbabwe

11 posted on 09/29/2010 7:33:55 AM PDT by Errant
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