As a semi-retired person the current economic environment has made it very hard to get any kind of return on my money and I would like to see interest rates begin to go up sometime soon. With interest rates at virtually zero, money market accounts and certificates of deposit are paying close to nothing at all.
During the coming week, the Federal Reserve as this article points out is going to announce plans to print more money (QE2) in a effort to boost the economy, create jobs, avoid deflation and thus keep interest rates low. How much more money the fed is going to print has yet to be determined.
The thing I found quite interesting about this article is the writers premise that he believes the “true purpose of QE2 is not to do what’s mentioned above, but to disquise the decreasing ability of the treasury to finance its debts because global demand for our debt is falling.”
Lets face it, we all know that sometime in the future (if not already) China is probably going to scale back their purchases of our debt and when that does happen as the author says “if the truth be known a real panic would ensue”.
One of the amendments added by independent Bernie Sanders from Vermont, to the Wall Street Reform Bill passed earlier this year, was to have the General Accounting Office audit the fed periodically, but the language was watered down and the audit now only applies to emergency spending by the fed.
So much for government transparency !