How Bernanke Pulled Off QE3
So if you're not sure about the last post saying that the U.S. manipulated its currency just like China manipulates the Yuan, then read this article from the WSJ about how Bernanke convinced everyone why QE3 is the way to go.
The article refers to Bernanke's concept of the Fed buying mortgage bonds - which is what we'll get under QE3. What the article doesn't make clear is that QE (Quantitative Easing) requires the Fed to create money out of nothing in order for the Fed to purchase those mortgage bonds. That's printing money, and printing money is manipulating the currency. And there was a whole contingent of folks at the Fed who wanted this for a long time:
The article refers to Bernanke's concept of the Fed buying mortgage bonds - which is what we'll get under QE3. What the article doesn't make clear is that QE (Quantitative Easing) requires the Fed to create money out of nothing in order for the Fed to purchase those mortgage bonds. That's printing money, and printing money is manipulating the currency. And there was a whole contingent of folks at the Fed who wanted this for a long time:
"Activists got what they most wanted: An open-ended commitment to buy mortgage bonds until the job market improved, with the strong possibility of additional Treasury purchases later."(Read the rest of the article by clicking HERE.)
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