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Another Reason Why The Fed Should Not Pursue QE2

Monday, October 25, 2010 - 3:54 PM
The New York Times Buzz Blog has an interesting post on the Fed's policies and its effect on the dollar. It shows yet another downside of QE2:
This so-called practice of quantitative easing is generally viewed as bad for the dollar because the Fed would be essentially printing money in order to pay for the long-term bonds it plans to buy.
[...]
The fear is that if the dollar continues to fall, foreign creditors will eventually get tired of the weak dollar and sell their Treasuries. That would push long-term yields much higher and could help bring about inflation.

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Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,702
1. Monday, October 25, 2010 - 6:59 PM
Just read this an found it summed up how savers getting the short end by the FED

http://www.dailyfinance.com/story...g/19687005
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scottjscottj27 posts since
Jun 5, 2010
Rep Points: 727
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