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Old January 9th, 2013, 09:15 AM   #1
PriscillaMS's Avatar
Join Date: Mar 2012
Location: West Virginia, USA
Posts: 358
Political questions anyone

Up for a question?


I read in the news today (Iím behind I know) that Ben Bernanke, the Chairman of the Federal Reserve, has begun the fourth round of "quantitative easing" (QE4) that will add $85 billion to the US economy every month. This is to be an on going policy and no time limit has yet been set for these monthly money additions.
This policy of course is simply the printing of 85 thousand million dollars ($85B) a month out of thin air. Whether this is good policy or not is arguable. (My personal fear is that such printing devalues the dollar and will ultimately lead to inflation and rising costs of all commodities including energy.) But letís not argue this now.
My question is simple. If, during a weak economy, it is a GOOD thing to print money as Bernanke is proposing and doing but as everyone including the president has admitted a BAD thing to raise taxes on anyone during a weak economy, why then did the government (the Democratic Party in particular) insist on raising taxes recently? Why not just print a bit more money, the GOOD thing to do?
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