GANG; THIS WON'T DO SQUAT FOR YOU OR ME AND THE ECONOMY. I'M PUZZLED.
All of my work regarding QE has me wondering why the Fed would implement such a policy when the evidence appears to point to little to no gain in economic growth? The only logical answer is that QE2 is really just another case of the Federal Reserve proving that this is a country centered around the bankers, by the bankers and for the bankers. Before you brush me off as some conspiracy theorist please consider the evidence.
The problem with a policy like QE is that it does not actually add net new financial assets to the private sector. This is ultimately the primary misconception regarding QE. The expansion of the monetary base is not net new money in your pockets. Thus, it will not help finance new spending or investment, it will not create jobs, it will not increase aggregate demand, etc. Therefore, any policy effectiveness is based on a shuffling of assets and hopes for a sustained psychological change. A sitting member of the FOMC has (finally) admitted that QE is unlikely to do anything for the economy: article
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