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Recently, the U.S. Federal Reserve Open Market Committee (FOMC) announced the implementation of 600 billion U.S. dollars will again be the "quantitative easing" program (called the QE2) Jaire Alexander Shirt , the Fed made money to buy long-term bonds issued by the Ministry of Finance, a monthly purchase amount 75 billion until the second quarter of 2011.

Different with the QE1, QE2 has been extensive criticism, and even scolded bond king Gross, it is "Ponzi scheme." Under the influence of the parties Ha Ha Clinton-Dix Shirt , QE2 to become more modest scale, like the spread of money, "the first of the aircraft" (Bernanke) of convergence, but did not weaken his position, he still suggests QE2 is not the "end "Unless the market is expected to develop the implementation of Bernanke's inflation target so far.

QE2 will achieve what goals? The most direct Randall Cobb Shirt , it will suppress the long-term interest rates, 600 billion QE2 about longer-term bonds will drive down interest rates 20 basis points. Now, data from a variety of changes, the United States government bonds under the market interest rates began to rise, Bernanke does not allow this situation occurs Mike Daniels Shirt , QE2 will interrupt the momentum at the same time, Bernanke's hint will make the market aware , the Federal Reserve will keep interest rates continue to combat this "up-style natural return to the" process.

Long-term interest rates 20 basis points down on the U.S. economy help? For now, its U.S. real estate market and the purchase of a foreclosure is not big, too small benefits it provides. However Clay Matthews Shirt , Bernanke believed in a "leveraging theory", the Fed dramatically purchase of bonds, forcing the market to accept low interest rates, market investors will increase the purchase of other assets - such as the strength of the stock, to construct a " artificial bull market Aaron Rodgers Shirt , "the rise in the stock market will increase household wealth and consumer demand, which will stimulate economic growth.

Frankly, the situation facing Bernanke is strange, because "the equities bull market" and "real estate bear market," co-exist Dexter Williams Shirt , the stock market wealth growth and the economic sector "to the debt of the" co-exist to speed up lever technology and "deleveraging" co-exist. This fact means that the wealth in a market growth is likely for another market, "debt repayment", while the side fill hole digging, the role of being offset.

But Bernanke stressed "QE2 to counter deflation" is untenable. Prior to that, the w. Cheap Custom Jerseys Cheap Custom Jerseys Cheap Jerseys From China Cheap Custom Jerseys Free Shipping Cheap Custom Jerseys From China Cheap Custom Baseball Jerseys China Cheap Custom Team Jerseys From China Cheap Custom Sports Jerseys From China Cheap Custom Softball Jerseys Sale Cheap Custom Soccer Jerseys Sale