The Federal Reserve plans on exporting the U.S. middle class abroad with Quantitative Easing II. QE1 cost $1.7 trillion and took the underemployment rate from 10 percent to 17 percent.

MyBudget360.com

The Federal Reserve is entering uncharted territory with this second phase of quantitative easing.  The public may or may not be aware that the Fed has already embarked on quantitative easing (QE1) and has grown their balance sheet by $1.7 trillion (that’s $1,700,000,000,000) by exchanging U.S. Treasuries for questionable assets including a shopping mall in Oklahoma.

 It is obvious that the Fed is betting on the public being unaware of this action to continue on their unabashed shadow bailout of the banking industry.  Some think that this will somehow cause residential real estate prices to boom.  Yet this flies directly in the face of a middle class that is quickly seeing their nominal income decrease.  How will they support higher home prices?  It doesn’t compute but what is certain is the demise of the U.S. dollar is already happening.
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