Changes

'''Quantitative Easing''' is the controversial use of gimmicks by the [[Federal Reserve]] to try to encourage economic growth during a recession.  It consists of tricks like buying up bonds in an indirect effort to lower interest rates.

'''Quantitative Easing''' is the controversial use of gimmicks by the [[Federal Reserve]] to try to encourage economic growth during a recession.  It consists of tricks like buying up bonds in an indirect effort to lower interest rates.

An economic monetary policy in which the total money supply is increased by the [[Federal Reserve]] buying government Treasury bonds. The goal is to encourage private banks to lend more and help reduce the effects of an economic recession. First used by [[Japan]] in 2000 to fight a deflationary economy. The 2010 and 2011 actions of Federal Chairman [[Ben Bernanke]] is to buy U.S. government bonds, with borrowed money, to help ease America's declining financial statistics. By creating more dollars out of thin air, the dollar becomes devalued with the existing money supply versus other currencies. This policy of creating additional money to give to banks so that they lend more is highly questionable. The banks were largely responsible for the [[Great Recession]] and the increased money for banks have failed to produce the desired effect even after the Central Bank's $1.7 trillion purchase. The short term gains are minimal and in the long term, this will eventually lead to higher prices and inflation or even hyper-inflation. <ref>[http://blogs.forbes.com/charleskadlec/2011/02/22/higher-inflation-is-on-the-way/ Higher Inflation Is On The Way, Forbes.com, February 22, 2011]</ref>

An economic monetary policy in which the total money supply is increased by the [[Federal Reserve]] buying government Treasury bonds. The goal is to encourage private banks to lend more and help reduce the effects of an economic recession. Quantitative easing was first used by [[Japan]] in 2000 to fight a deflationary economy. The 2010 and 2011 actions of Federal Chairman [[Ben Bernanke]] is to buy U.S. government bonds, with borrowed money, to help ease America's declining financial statistics. By creating more dollars out of thin air, the dollar becomes devalued with the existing money supply versus other currencies. This policy of creating additional money to give to banks so that they lend more is highly questionable. The banks were largely responsible for the [[Great Recession]] and the increased money for banks have failed to produce the desired effect even after the Central Bank's $1.7 trillion purchase. The short term gains are minimal and in the long term, this will eventually lead to higher prices and inflation or even hyper-inflation. <ref>[http://blogs.forbes.com/charleskadlec/2011/02/22/higher-inflation-is-on-the-way/ Higher Inflation Is On The Way, Forbes.com, February 22, 2011]</ref>

For example, in response to a weakening [[economy]] likely due to [[liberal]] policies by the [[Obama Administration]], the Federal Reserved announced on September 13, 2012 that:<ref>http://www.cnbc.com/id/49036260</ref>

For example, in response to a weakening [[economy]] likely due to [[liberal]] policies by the [[Obama Administration]], the Federal Reserved announced on September 13, 2012 that:<ref>http://www.cnbc.com/id/49036260</ref>