Will $600 Billion in 'Quantitative Easing' Help Ordinary Americans?

Monetary strategy could affect prices of goods, gas and gold

Monday, November 08, 2010

Last week, New York Times Wall Street and finance reporter Louise Story explained how the Federal Reserve's new economic recovery plan, known as "quantitative easing," works. Story explained that the process is intended to effectively lower already-low interest rates, making it cheaper for banks to borrow money. But how will this impact ordinary, middle-class Americans?

Some economists say the strategy, dubbed "QE2," will create inflation, weaken the dollar, and increase the price of both gasoline and gold. We talk with Dan Gross, economics editor and columnist at Yahoo Finance about the trickle down effect of QE2. And truck driver Cliff Hagedon pulls off to the side of the road to explain how he's already seen the impact of the Feds' decision at the gas pump.

Guests:

Dan Gross and Cliff Hagedon

Produced by:

Arwa Gunja

Comments [2]

Dr. Goose from Glen Ridge NJ

Said Bernanke: "I wish I were abler
To stimulate use of our labor,
So I'll cheapen our bucks
And we'll export more trucks,
Which is sometimes called 'Beggar Thy Neighbor.'"

http://www.limericksecon.com

Nov. 08 2010 08:50 AM
John Deal from Accomac, VA

This policy is also another hit on people who save rather than borrow. With saving rates about 1%, this policy may make it negative in real-world value.

Another example that responsible people get the loosing end.

Nov. 08 2010 08:21 AM

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