On Wednesday, July 13, the Federal Reserve Chairman, Ben Bernanke, signaled that the US economy was still weak and that more financial stimulus may be necessary. http://natpo.st/pBPAzN
This means they are considered another round of quantitative easy, i.e. QE-3. Has anyone in the U.S.A. seen an improvement in the US economy since the first two rounds of quantitative easing? Let me answer that – NO! So why would anyone in their right mind think that another round of this folly is going to make the economy improve.
The people that benefit from quanitative easing are the investment banks, large investors, currency speculators, and hedge funds. These are not the institutions that are going to create jobs and economic growth for the country.
US companies are not investing in building new plants, buying more equipment, or hiring workers. What are they doing with their money? They are buying back their stock in record numbers. So all this financial stimulus has only caused companies to sit on a mountain of cash that they are now using to buy back their own stock. This only benefits shareholders in the short term. It lifts the stock price. However, if we economic growth it would be better that these companies invest the money in new plants and new products which do create new jobs. http://bit.ly/nfZDpi
Wake up America! The only people that benefit from quantitative easing are the rich. Don’t be deceived by these empty tactics and meaningless words. The Federal Reserve is only creating an illusion that this stimulus really helps the economy. All it’s doing is devaluing our currency and agravating financial problems around the world.