Is there are relationship between QE2 and the riots in Egypt and Tunisia?
Ben Bernanke has a knack for making the exact wrong choices time and time again. Either he is completely clueless (doubtful) or is working towards an entirely different set of goals than he wants us to believe. The Fed's quantitative easing program (a program with a technical sounding name to try to hide the fact that it means making hundreds of billions of dollars out of thin air) did not have the planned effect at all. It was supposed to drive interest rates lower and to help 'get the economy going' again. The real effect was to raise interest rates. Instead of admiting that he was wrong, Bernanke decalared that the program is working because the stock market went up. Of course it did with all the POMO activities going on. The Fed dumps as much money to the banks who invest it in the market in a week as GE makes in an entire year. We get a 20 point increase in the Dow at the cost of hundreds of billions of dollars. Of course all this money 'printing' has consequences.
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