Wednesday, October 20, 2010

The Dollar Is Doomed

 A string of U.S. Federal Reserve officials on Tuesday indicated the central bank will soon offer further monetary stimulus to the economy, with one saying $100 billion a month in bond buys may be appropriate.
While some internal reticence to the unconventional policy was still evident, the consensus view at the Fed sees the economy as weak enough to warrant further support, most likely through increased purchases of Treasury debt.
The U.S. economy is expected to have grown just 1.9 percent in the third quarter, a level considered too low to bring down unemployment.
The debt purchases would help lower long-term interest rates in the hope of boosting demand.
Atlanta Fed President Dennis Lockhart's willingness to cite a specific dollar figure for purchases, one largely in tandem with market expectations, was seen as another hint that planning is actively underway.
"If we're going to pursue another round of quantitative easing, it has to be a large enough number to make a difference," Lockhart said in an interview on CNBC.
"As a monthly number ($100 billion) is fairly consistent with what we did before, and so I think it would certainly be in the range of numbers one might consider ... but if you were talking about $100 billion as simply the overall program, I think that's too small," he said. (Read more about his comments here).
More Here..

1 comment:

  1. alialioxenfree. how many times it seem we pole into a doom and doom counters with a okay sign from leaders. Everything is okay folks, go get jobs or keep working. if you catch me in the mroning i make my name, bonifying hustlng all day. greed/ Its basic to the issue. Tell me why I work as hard not to make as much? We need universal housing and money, senaters print all money and people get money. simple economics lesson. prime root of common sense.


Everyone is encouraged to participate with civilized comments.