QE2 IS WHAT?

The elections are over and the immediate problems being faced by our nation are programs that B. H. Obama wants to implement now before the US House of Representatives becomes controlled by the newly elected Republican members. One of these "programs" is QE2 which is formally called Quantitative Easing Part Two.



There was a QE1 and it cost America some $1.75 trillion and in the words of Washington officials it "helped the economy" and allowed the economy to "avoided a depression". Tell that to the millions of Americans who remained unemployed and the millions of Americans who have had their homes foreclosed. You had better be ready to duck.



This new QE program is scheduled to sell, between now and the end of June 2011, some where between $850 and $950 billion of US Treasuries. These funds are going to be used to "further" stimulate the American economy. The most bizarre aspect of this QE program is that the federal government is already designated itself to be the purchaser of these Treasuries. The immediate reaction has to be , "Where is Washington going to get as much as $950,000,000,000.00 to buy these QE2 ?" The answer is easy. The US Treasury is just going to print up those dollar bills.



Washington justifies the creation of this huge debt with the explanation that the QE2 will stimulate the economy; will lower federal expenses by putting Americans back to work; will cause there to be more received in federal tax income; and will thus allow a pay-off of these QE2 Treasuries. More realistic economists just don't see this happening and forecast that high unemployment will be a problem in America for several, maybe many, more years. Worse yet, many sources now have expressed that this QE2 program will accelerate the rise of the ever lurking inflation rate. Ben Bernanke has acknowledged that inflation will rise from 1.5% annually to 2.0% but other pundits are projecting a much more drastic increase of the inflation rate.



QE2 is guaranteed to do nothing but increase our nation's debt (even if it is to ourselves) and place the federal government in a position to exercise more control over more aspects of the American economy. You can be assured that every dollar given or loaned by Washington to a private business will include rules and guidelines that must be adhered to by the receiving businesses. Washington control over the more elements of our economy is further proof of Obama's desire that America be a socialist nation.



With any luck, a new House of Representatives can control these Obama goals but that will not be a reality until January 2011.