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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.

Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708
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
scottjscottj30 posts since
Jun 5, 2010
Rep Points: 800