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Showing posts with label money supply.. Show all posts
Showing posts with label money supply.. Show all posts

Thursday, January 8, 2009

Quantitative easing is next?

Quantitative easing is next?

In short, the printing of money. To unclog the system?
We are beginning to hear the 'D' word, ... Depression!

What is quantitative easing?

Quantitative easing has begun.
Quietly, without fanfare, the Federal Reserve has turned on the printing presses. The central bank is flooding the market with enough excess liquidity to refloat the banking system — and hopes to generate an upturn in both economic activity and inflation in the next 12-18 months to prevent the economy falling into a prolonged slump.
Since the banking crisis intensified in September, the Fed has been rapidly expanding the credit side of its balance sheet, providing an ever-increasing array of facilities to support the financial system (repos, term auction credit, primary discount credit, broker-dealer credit, commercial paper funding, money market mutual fund liquidity and term securities lending).

This link could be interesting as well but it's a bit wilder and more speculative.
Quantitative Easing: The Kick Start Of Gold’s Move To $1200 and $1650...