Results of Fed Stimulus Could Be 'Horrendous' | WHAT REALLY HAPPENED

Results of Fed Stimulus Could Be 'Horrendous'

In a separate interview on public broadcaster ARD, Schäuble said that the move by Fed Chair Ben Bernanke would "create additional problems for the world." He promised to bring up the issue in talks with the US and said that, by following such a monetary path, the US was violating a pledge that all industrialized countries agreed to at the last G-20 summit in Toronto in June.

The Fed's plan envisions the purchase of US government bonds in an effort to lower long-term interest rates as a way to stimulate borrowing and investment. In a contribution to the Washington Post, Bernanke emphasized that the move was designed to help strengthen the US job market and reduce an unemployment level that has stagnated at 10 percent. "This approach eased financial conditions in the past and, so far, looks to be effective again," Bernanke wrote, referring to rising stocks and dropping interest rates this week.

Webmaster's Commentary: 

This QE2 program is going to be great for the bankers, who - by the way - are already buying foreign assets with this money - but absolutely lousy for working people.

Many businesses have cut hours and benefits, and/or reduced pay for their employees just to stay afloat. People with jobs are desperately trying to hang on to what they have.

As Bernake is not an idiot, one has to imagine that this has been the design objective of these economic policies all along: to reduce American workers' wages to make American corporations more competitive globally.

The problem is, these employees have no way to make up the shortfall between the cut in pay and benefits, relative to what they have to spend to stay alive; consequently, more and more families will be driven to the edge of poverty and desperation.