Quantitative Easing Explained

On 11/15/2010, in Economics, by Jordan Wilson

You may have heard that the U.S. is embarking on “Quantitative Easing 2” (QE2) to stimulate the U.S. economy.

QE2 is an important topic to understand as it will affect the global economy as well.

I am against QE2 for many reasons.

I could write a lengthy diatribe on how: “quantitative easing” is just a cute way of saying “printing money”; we are already entering an inflationary period; printing money is poor policy; it will lead to a devalued U.S. dollar; “QE 1” worked out so well (not); and so on.

Instead, here is a video that very nicely summarizes what is going on.

I suggest watching it.

You may learn more in 7 minutes than in an entire semester of economics.

Note there is a slight language warning.

1 Response » to “Quantitative Easing Explained”

  1. Matt says:

    Very amusing and very true! The American dollar is intentionally being devalued. Maybe the “Ben Bernanke” should listen to the rest of the world. Unless the US wants to swap roles with China…. it could be the next TLC reality T.V. show, “Economy Swap”!

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