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4 Bumps

The Fed is going to buy $600 billion of govt bonds, essentially printing money. How will this help the economy? Will expanding inflation help the economy?

http://online.wsj.com/article/SB10001424052748703506904575592471354774194.html

I have a background in banking in finance. I just can't see how the massive printing of money which history tells us raises inflation...will help lower interest rates and encourage growth.

 
yourspecialkid

Asked by yourspecialkid at 9:49 AM on Nov. 4, 2010 in Politics & Current Events

Level 35 (74,634 Credits)
This question is closed.
Answers (15)
  • LOL, when all else fails, just print more. ROLF! Oh, I can't be on here all day but that one will keep me laughing. No wonder we are so friggen broke.

    QuinnMae

    Answer by QuinnMae at 10:01 AM on Nov. 4, 2010

  • More proof they need to start requiring all members of the Admin and Congress to go back and take a basic macroecon class.
    NotPanicking

    Answer by NotPanicking at 9:59 AM on Nov. 4, 2010

  • This is horribly funny in a morbidly crappy kind of way. I agree with NP. I learned that in college... Macro and Micro should be required of anyone that wants to run for office.
    lovinangels

    Answer by lovinangels at 10:50 AM on Nov. 4, 2010

  • It just makes our dollar worth less. Or is that worthless?
    QuinnMae

    Answer by QuinnMae at 9:59 AM on Nov. 4, 2010

  • are we really suprised about this? God help us.....

    kittieashy

    Answer by kittieashy at 10:06 AM on Nov. 4, 2010

  • It didn't work the first time why the hell are they going to do it again. I remember all the stories about the big companies taking this money and holding it. In fact they are STILL holding money from the last printing. It's a shame we don't vote for FED members too. None of it is good.
    itsmesteph11

    Answer by itsmesteph11 at 11:22 AM on Nov. 4, 2010

  • No fair that the govt can do this but they won't let me print my own money in the basement :)
    SophiaofLight

    Answer by SophiaofLight at 11:50 AM on Nov. 4, 2010

  • Is like "play Money"... more consumption+ inflation...less International credibility!
    Monica655

    Answer by Monica655 at 10:03 AM on Nov. 4, 2010

  • This is horribly funny in a morbidly crappy kind of way

    It is funny, in a sigh and roll your eyes sort of way, that people don't get what exactly this means even though there are questions about the coming inflation this causes right here on the first page with this question.
    NotPanicking

    Answer by NotPanicking at 11:08 AM on Nov. 4, 2010

  • Christ!
    tnmomofive

    Answer by tnmomofive at 11:13 AM on Nov. 4, 2010

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