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Romney calls the Fed's QE3 a "Sugar High" that will Hurt Everyone

Posted by on Sep. 18, 2012 at 10:34 AM
  • 3 Replies

Romney Calls Fed Move ‘Sugar High’


By Colleen McCain Nelson and Damian Paletta  

Republican presidential candidate Mitt Romney, in his most explicit criticism of the Federal Reserve’s recent moves, on Friday said the central bank was offering the economy nothing more than a “sugar high” that would cause pain for everyone from savers to the U.S. dollar down the road.

The criticisms, made at a fundraiser in New York, came less than 24 hours after the central bank announced open-ended plans to buy mortgage-backed securities to try and help the jobs market. Democrats have cheered the move, though many Republicans have been highly critical. The White House, as is customary on Fed decisions, has not weighed in. Mr. Romney didn’t hold back on Friday though.

“Recognize that as the Federal Reserve keeps on trying to stimulate the economy by printing more money that there’s a cost to that,” Mr. Romney said. “The value of your savings goes down. People who are living on fixed incomes don’t see much interest income any more. And the value of the dollar goes down and the risk for long-term inflation goes up. There’s real cost to these stimulative print-more-money policies. The real course ahead for America is to encourage the growth of our economy not just to go out there and print more money.”

Earlier, in an interview with ABC News, Mr. Romney said the Fed’s move reflects poorly on Mr. Obama’s stewardship of the economy, and moreover, he disagreed with the Fed’s move.

“The president’s saying the economy’s making progress, coming back.  Bernanke’s saying, ‘No, it’s not.  I’ve got to print more money,’ ” Mr. Romney told interviewer George Stephanopoulos. He added: “I don’t think what Bernanke is doing is going to get the economy going.  I think we have to have a leadership in Washington that encourages the private sector.  I think printing more money, at this point, comes at a higher cost than the…benefit it’s going to create.”

http://blogs.wsj.com/washwire/2012/09/14/romney-calls-fed-move-sugar-high/

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by on Sep. 18, 2012 at 10:34 AM
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_Kissy_
by on Sep. 18, 2012 at 10:35 AM
Only if you bank in foreign banks
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Meadowchik
by Gold Member on Sep. 18, 2012 at 10:50 AM


Quoting _Kissy_:

Only if you bank in foreign banks

What does this mean?

QE3 buys up billions of assets from American banks and other institutions. 

It is "trickle down economics" in ultimate form.  It will hurt everyday Americans, and even long-term investors are leary of it.  It will, however, make some short-term investors happy.

itsmesteph11
by on Sep. 18, 2012 at 10:56 AM
1 mom liked this

blank stareHow do you figure that? This really has little to do with banking period.

This is spot on.

 “Recognize that as the Federal Reserve keeps on trying to stimulate the economy by printing more money that there’s a cost to that,” Mr. Romney said. “The value of your savings goes down. People who are living on fixed incomes don’t see much interest income any more. And the value of the dollar goes down and the risk for long-term inflation goes up. There’s real cost to these stimulative print-more-money policies. The real course ahead for America is to encourage the growth of our economy not just to go out there and print more money.”

The man who is supposed to care so much for the elderly. Do you realize these policies have aleady hurt many of our seniors who get much of their income from these investments? Their incomes have been severly cut. It's his fault they are now part of the "poor".

Quoting _Kissy_:

Only if you bank in foreign banks

 

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