By Economic Policy Journal
In a keynote speech in Phoenix, Sarah Palin targeted the Fed. She said, in part:
I’m deeply concerned about the Federal Reserve’s plans to buy up anywhere from $600 billion to as much as $1 trillion of government securities. The technical term for it is “quantitative easing.” It means our government is pumping money into the banking system by buying up treasury bonds. And where, you may ask, are we getting the money to pay for all this? We’re printing it out of thin air
The Fed hopes doing this may buy us a little temporary economic growth by supplying banks with extra cash which they could then lend out to businesses. But it’s far from certain this will even work. After all, the problem isn’t that banks don’t have enough cash on hand – it’s that they don’t want to lend it out, because they don’t trust the current economic climate.
1 comment:
Once again she makes common sense to me. Certainly the subject is something the American people should have a conversation about, because it will have an impact on our purchasing power in the future. She seemed to have taken a cautious down the middle approach, not necessarily saying it will result in doomsday, But was it warranted.
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