What is QUANTITATIVE EASING?

Q.E.

By Dr. David E. Marcinko MBA CMP®

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SPONSOR: http://www.CertifiedMedicalPlanner.org

QE (Quantitative Easing = compound noun)

Although standard definitions will tell you that it is a ‘monetary policy’ used by central banks to stimulate the national economy, in reality it is more as follows:

– A cleverly disguised word that simply means ‘money printing’.

CITE: https://www.r2library.com/Resource/Title/0826102549

Central banks use QE as a disguise for increasing the money supply, as to monetize its increasing debt.

For a more technical analysis of the actual mechanics of QE, I invite you to read the article entitled QE for Dummies.

Examples:

1. The Central Bank embarked on another round of QE in hopes that it can kick-start the economy.

2. Ben Bernanke is set to begin the Fed’s taper of QE as soon as next month.

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One Response

  1. INFLATION Buy TIPS

    Short for Treasury Inflation-Protected Securities, these Treasury bonds protect against inflation because the principal amount increases with inflation. TIPS pay interest twice a year, and that rate is calculated on the principal amount — so investors will earn a higher effective interest rate during periods of rising inflation.

    A minimum of $100 is required to purchase TIPS, they are issued in 5-, 10- and 30-year durations and you can buy them directly from the federal government or through an online broker.

    Jeff

    Like

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