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US Knows Nothing About $2.8T Quantitative Easing

From Reuters:

Poll: With the end of Fed’s QE in sight, U.S. public says ‘Huh?’

By Ann Saphir | September 18, 2013

SAN FRANCISCO (Reuters) – The Federal Reserve this week is expected to start winding down an epic economic stimulus that is credited with helping the United States claw back from the deepest slump since the Great Depression.

The Fed’s $2.8 trillion "quantitative easing" program has, among other things, lifted stock prices to record highs, driven interest rates to record lows and put a floor under what had been a reeling housing market.

And what have we gotten for $2.8 trillion dollars? The rich have gotten richer. And donate more to the Democrat Party. No wonder our news media don’t want us to know what it is.

Yet barely a quarter of Americans even know what it is.

And that’s just the way Obama likes it. Otherwise, they might start going after some people with pitchforks.

A poll leading up to the Fed’s pivotal decision, expected Wednesday afternoon, found just 27 percent of U.S. adults could correctly pick the correct definition of quantitative easing from among five possible answers.

Quantitative easing, or QE for short, is when the Fed buys bonds in order to push down interest rates and boost the economy…

Was that the ‘right answer’? No wonder no one picked it!

Twelve percent of respondents thought QE was a computer-assisted program that the Fed uses to manipulate the dollar. Another 11 percent thought it was part of the Dodd-Frank Wall Street reform legislation enacted following the crisis…

Hilarious.

But to some, such a fuzzy understanding of what has become a critical monetary policy tool is not enough. "When making investments, or taking out a loan, it’s terribly important that we understand how the decisions taken in Washington affect us," said Carl Tannenbaum, Northern Trust’s chief economist.

QE is unlike the Fed’s traditional tool of raising and lowering short-term interest rates, and the public needs to understand its benefits, and risks, to better inform their decisions.

"The Fed at times has not done a very good job of explaining what it is up to," Tannenbaum said. "It’s also fair to say that the state of financial literacy in the United States offers important room for improvement."

If only we had a free press who would tell us about these things.

This article was posted by Steve Gilbert on Wednesday, September 18th, 2013. Comments are currently closed.

4 Responses to “US Knows Nothing About $2.8T Quantitative Easing”

  1. captstubby

    in order to push down interest rates and boost the economy…

    The One said the Recession ended years ago,
    and happy days are here again.

    the Fed just got Wall Sreet and the Big Banks hooked on Funny Money Amphetamines.
    “you’re my Bitch now!”

    Most Common Amphetamines Side Effects – Side effects of amphetamines may be mild to moderate but when an excessive amount of the drugs are used or an allergic reaction occurs, amphetamines can have dire side effects that result in serious consequences to the user. Amphetamine Addiction
    5 Common Amphetamine Addiction Symptoms – You may notice some of these amphetamine addiction symptoms before you even realize that there is actually a problem with amphetamine abuse. What are Amphetamines? – Amphetamines are dangerous stimulants that can pose serious health consequences to the average user, causing side effects that include heightened paranoia, anxiety and depression.

    • captstubby

      No Taper! Dow, S&P 500 Soar to Record Highs: By Jennifer Carinci

      1 hour 26 minutes ago
      U.S. stocks are rallying 1% across the board after the Federal Reserve announced it will not reduce its $85 billion monthly asset purchasing program. The unexpected decision propelled the Dow Jones Industrial Average (^DJI) and the S&P 500 (^GSPC) to hit fresh record highs, topping the previous records of 15,658 and 1,709, respectively; both set on August 2nd. Gold prices are also riding the wave higher, rising over 2% to $1,340 an ounce.

      In a news conference underway now, Fed chairman Ben Bernanke said recent economic data has not provided sufficient reason to begin scaling back stimulus. Further, he insinuated that Washington, DC could be factoring into the central bank’s decision-making process, stating “upcoming fiscal debates may involve additional risks.”

  2. canary

    oh goodie. My Obama green neighbor brought up this up, but left out it was the Democrats that got richer. She is a really sweet giving person, but really get’s riled easy, so I do my best not to bring things up.

    As far as bringing up Obama wars which I have for several years, Democrats just say “ehh..yeah..well..and refuse to discuss it. Same reaction from extreme anti-Vietnam protestors.

    It is a fact that Democrats can do what they want and get away with it. And Republicans are too mild mannered and political correct to stoop to their level.


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