QE2, Another Headache In The Making

Last Wednesday, the Federal Reserve announced it was going to buy another $600 billion of
government bonds.

Dubbed “Quantitative Easing 2” (QE2), Fed leaders hope this move to pump money into the
economy will lower interest rates (which are already near zero). Instead, it’s more of
the same type of interference that led to the housing bubble and this current crisis.

Printing more money out of thin air is not the solution, and this move has been criticized
throughout the world. Even Paul Volcker, who was Fed chairman under Presidents Carter and
Reagan, has said QE2 “probably won’t do much” to help our economy recover.

The criticisms come as only part of a backlash that has been building since the Ron Paul
presidential campaign. With calls for auditing the Fed,
more Americans are becoming skeptical of the nation’s central bank and aren’t as willing to
accept the usual story line from Washington.

As if there couldn’t be any more attention put on the Fed, Congressman Ron Paul is next in
line to become the chairman of the House Subcommittee on Domestic Monetary Policy and
Technology, the committee that provides regular oversight of the Fed.

Ron Paul just became the Fed’s worst headache.

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