Changes

In general, the Federal Reserve tries to stimulate the economy by lowering short-term interest rates.  However, when short-term interest rates are lowered to zero, the Federal Reserve turns to other less frequently used actions to with a goal of stimulating the economy. The Federal Reserve calls these "quantitative easing."  Basically, these involve the Federal Reserve purchasing longer-term bonds to lower the medium and long-term interest rates.

In general, the Federal Reserve tries to stimulate the economy by lowering short-term interest rates.  However, when short-term interest rates are lowered to zero, the Federal Reserve turns to other less frequently used actions to with a goal of stimulating the economy. The Federal Reserve calls these "quantitative easing."  Basically, these involve the Federal Reserve purchasing longer-term bonds to lower the medium and long-term interest rates.

There is no free lunch, so "quantitative easing" is always at someone's expense.  In general, although the some individuals in the economy may benefit from quantitative easing, the people who rely on bond interest income are harmed by their reduced income. On the whole, however, quantitative easing harms the economy as it reduces predictability.  Instead of the market determining the value and quantity of money, it is the determined by the caprice of the Federal Reserve Chairman who may act in a very unwise manner unconstrained by market forces and guided by antiquated economic theories such as [[Keynesian economics]]. In addition, quantitative easing is not equitable in its policy and unjustly enriches the wealthier members of society.<ref>[http://www.washingtonsblog.com/2012/04/forget-competing-theories-about-quantitative-easy-what-do-the-facts-show.html  Does Quantitative Easing Benefit the 99% or the 1%?]</ref> For example, the elderly who wish to receive income from low risk bonds and bank deposits are hurt by arbitrary and artificial measures to lower interest rates dictated by unelected bankers rather than market forces.<ref>[http://www.economicreason.com/canadahousingbubble/effects-of-low-interest-rates-part-2/ Effects of low interest rates]</ref>  

There is no free lunch, so "quantitative easing" is always at someone's expense.  In general, although the some individuals in the economy may benefit from quantitative easing, the people who rely on bond interest income are harmed by their reduced income. On the whole, however, quantitative easing harms the economy as it reduces predictability.  Instead of the market determining the value and quantity of money, it is the determined by the caprice of the Federal Reserve Chairman who may act in a very unwise manner unconstrained by market forces and guided by antiquated economic liberal theories such as [[Keynesian economics]]. In addition, quantitative easing is not equitable in its policy and unjustly enriches the wealthier members of society.<ref>[http://www.washingtonsblog.com/2012/04/forget-competing-theories-about-quantitative-easy-what-do-the-facts-show.html  Does Quantitative Easing Benefit the 99% or the 1%?]</ref> For example, the elderly who wish to receive income from low risk bonds and [[bank#depositing|bank deposits]] are hurt by arbitrary and artificial measures to lower interest rates dictated by unelected [[elitist]] bankers rather than market forces.<ref>[http://www.economicreason.com/canadahousingbubble/effects-of-low-interest-rates-part-2/ Effects of low interest rates]</ref>  

Michael Snyder wrote concerning Ben Bernanke:

Michael Snyder wrote concerning Ben Bernanke: