Quantitative Easing (a.k.a. printing money)

This just in at the globe:

Although some observers had believed that the central bank’s monetary policy decision on Wednesday would be another non-event, it turned out to be anything but: The Fed ushered in a new era of so-called quantitative easing, announcing that it will buy massive amounts of U.S. Treasuries in an attempt to bring down borrowing costs and spur on consumer spending

Ahhh, quantitative easing.  Borrowing costs are too high in the debt laden America.  I guess China hasn’t been snapped up those bonds like they used to.  The US central bank is printing a big stacks of bills and giving it to the government.  This could be the first step towards run-away inflation and a significant devaluation of the US dollar.  The Loonie went up 2 cents US in one day.

  1. #1 by Erica Baerwald on March 19, 2009 - 12:39 am

    The answer to everything is Celine Dion.

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