The Federal Bank of America is going ahead with another round of Quantitive easing to the tune of $600bn. The gernal idea being to try and help kick start growth in America.
Is it really the right thing to do, or is it the easy thing to do. It will certainly pump money into some business and the financial sector, but will it have any affect on Americans and their day-to-day business. It has already pumped in $1.7tr into the economy with effect in some areas but did not appear to fix some of the underlying problems.
Is this action just stpring up trouble for a later date in terms of inflation. Will the excess money drive down the dollar and in effect remove it from being the reserve currency of choice.
What would happen if the dollar was dumped for gold, as a more secure option, on the open market? And why isn't America going for any form of deficit cutting as the rest of the world appears to be swinging in that direction?