Category: Federal Spending

By now, it is only a matter of time, before the Fed starts QE2 in some shape or form. Probably not the “shock and awe” of early 2009,  but more of a measured, drip style, if you can call an estimated $100 billion per month a drip. More like a plop. Anyway, do we really need to expand the Fed’s balance sheet anymore? Will it really help consumer demand? My simple answer is ‘No”. Let’s replace QE2 with another buzzword for 2010, austerity. How about reducing spending?

Now that I have my own bully pulpit, let’s makes some waves. It is my personal belief that the Federal Reserve is wrong with QE2, (Quantitative Easing # 2, not the luxury ship from England) because liquidity is not our problem. Government policy is. Very simply, take the uncertainty out of the business world so people can plan, manage and prosper. Or put another way, lead, follow or get out of the way.