Today the Federal Reserve attempted to stimulate the weak U.S. economy and reduce high unemployment by announcing it will spend $40 billion a month to buy mortgage-backed securities. Also the US central bank has extended its plan to maintain short-term interest rates at their record lows through 2015.
Both of these actions probably will not help much will likely lead to higher inflation later. It only buys time.
Good for those invested in metals 😉
I think the US policy makers have a greater strategy of devaluing their currency. It will make paying back the giant debt that much easier as well as work to encourage the domestic populace to keep their money within their borders. I imagine that Canada's manufacturing industry is reeling at our currencies reaction to the news! The East can blame "Dutch Disease" all it wants however I think the fault lies outside of our own borders.
Needs must when the devil drives.
Many think that the Weimar Republic (German) attempted the same thing after WW1 to avoid reparations required by the Treaty of Versailles. It lead to hyperinflation that eventually brought down the government by the Nazi Party leading to Hitler's Third Reich. The government blamed the reparations (debt), along with bankers and speculators. Sound familiar?
Paying mortgages = more jobs? Thats a riot! Wont make a dent in the numbers.