Fed to Pump Another $1.2 Trillion Into U.S. Economy - Presidential Politics Political News - FOXNews.com:
If this were a corporation people would be calling for everyone of the executives to be canned on the spot. They are doing exactly what it will take to destroy this country's financial back.
"With the country sinking deeper into recession, the Federal Reserve
launched a bold $1.2 trillion effort Wednesday to lower rates on mortgages and other consumer debt, spur spending and revive the economy.
...The decision to hold rates near zero was widely expected. But the Fed's plan to buy government bonds and the sheer amount -- $1.2 trillion -- of the extra money to be pumped into the U.S. economy was a surprise...
...The dollar, meanwhile, fell against other major currencies. In part, that signaled concern that the Fed's intervention might spur inflation over the long run...."
They are pumping money into the economy -- this raises inflation ... making money out of nothing drops the worth of the US$ around the world.
Raising Taxes makes people hang onto their money because they know they have less of it.
Lowering interest won't work because people still don't have the money in their pockets to spend ... and those who take advantage of the lower interest rates are actually the ones who are already in such financial straits that they really don't have any other choice in order to live.
Here's what they need to do: (yet again I need to spell this out)
1. lower taxes across the board ... the more money in the pocket the more people will spend
2. raise interest rates .... make it less appealing to buy on credit. We need money to make it into circulation, not electronically but by actually getting into the market.
3. Tighten up on credit card companies ... they have become little more than loan sharks with lawyers. As it stands now, if you are two days late (even if due to postal problems not yours) paying your phone bill -- your credit card company can raise your interest rates to over 20%
4. freeze food/gas prices. Now this was one thing that came out of the Carter administration that I have to say I agreed with ... milk prices were frozen such that a family could afford to give their kids milk - the awful side effect was that farmer's of course didn't make enough money to feed their stock, pushing them farther into debt.
5. STOP MAKING NEW PROGRAMS!!!! It just seems like common sense that if the government can't pay for what they've got not to make new ones ... but with the Democrats in office it seems like the mantra is "Why fix it when you can just build around it". You have what you need in place now -- just FIX IT so it works.
I'm telling you .... if this were the USA Corp -- the whole of the White House would be out of work ... and we would be looking to tax ....
oops ... that's another posting!!!