The Federal Reserve today initiated Quantitative Easing 2: The Revenge by purchasing $7.23 billion dollars in long-term Treasury securities, creating money out of thin air in an effort to make Americans wealthier.
Last Wednesday, the Fed announced that it would be buying around $600 billion in Treasury securities over the next eight months. The central bank has promised to buy $105 billion over the course of this month.
The unconventional monetary practice, which endeavors to lower interest rates and encourage investment, has been criticized by Sarah Palin, Alan Greenspan, Germany, Brazil, Nassim Taleb and others as a currency-debasing way of creating asset bubbles. As sharp as their criticism has been, they have to admit that now there literally is more money to go around.
mtaylor [at] observer.com | @mbrookstaylor
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