U.S. Financial World War Phase 2: The ‘Wall Of Money’: A guide to QE2


I don’t claim any great expertise but I do, at least, understand the “publicised” intention of QE2. When I refer to the publicised version I mean the one for general [public] consumption. But, by now, we should all be vey well aware that when it comes to Governments and economic policy there tends to be a hidden agenda!

I can’t help but think that this is more about the once mighty dollar trying to fix debt with debt whilst putting pressure on other major currencies and adding further “energy” into the bubble that has been institutionally inflated since the effective collapse of global banking. Surely “market value” is a bit of a sick joke that only supports the balance sheets of those with the most amount of toxic debt on their books…

Support for “the market” rather than for US or global citizens.

Why do I have the feeling that the outcome will be lots of “I’m alright Jack” short term winners in the financial sector with even more long term losers amongst the rest of us!?

What does success look like for QE2? What’s the exit strategy? Who believes that this is the correct course of action and what is their justification for such a belief?

The US Federal Reserve is set to launch a second round of quantitative easing, known as QE2, on 3 November 2010. It is probably the US policy community’s last shot at averting a double-dip recession and it may work. But there is an argument raging among economists over the dangers. Here is a brief outline of what they are doing and why, and the arguments for and against. If you can improve on it, fire away and suggest changes; ditto if you disagree. I’ve talked to a number of financial sector economists to try to get this right, but it’s still a think-piece rather than definitive.Oh, and the whole future of the world economy depends on who’s right.

via BBC – Newsnight: Paul Mason: The ‘Wall Of Money’: A guide to QE2.