Quote:The FOMC minutes for the two-day November meeting suggest that under current economic circumstances the Federal Reserve will have to engage in a third round of quantitative easing. A few members of the FOMC pushed Bernanke for further accommodative policy in the last FOMC meeting, with Charlie Evans of the Chicago Fed actually dissenting in favor of more QE.Read More: forbes.com
In this weak economy printing money will have 1 of 2 effects:
1. There's a big risk of hyperinflation, this could very well tank the dollar in terms of worth or 2. Banks will decide to hang on to the money to beef up capital reserves. A real possibility with all the defaults in their present loan portfolios.
Neither of these scenarios help the average person, the FED is out of options and they are grasping at straws. Unemployment is the number one problem with the economy right now, printing more money that becomes increasingly worthless, or worse yet giving more money to the bank won't do a damn thing to help the economy.
Besides, this printing more money has already been tried, and IT DOES NOT WORK! Like the old saying insanity is doing the same thing over and over and expecting different results.