Do you Agree or Disagree with the Federal Reserve???

[Trien Chieu]

Do you agree or disagree with the Federal Reserve decision of printing over $1 trillion US dollars?? I think overall it's a great move. Printing huge amount of money would push the dollar lower against other currencies which would make US products more attractive. Therefore, it's good for export. In addition, the government can use the new dollars to buy back high interest bond to lower national debt. In addition, the lower dollar would make the national debt much smaller than a strong dollar. It's almost a win win situation for the US. However, it's almost a lose lose situation for countries that hold huge amount of US bond and US dollars as they they greatly depreciate in value. What do you think??

[wkeej]

Personally, I think there is no right or wrong answer. Economy moves in cycle. The excess liquidity may have resulted in lower interest rate, more investment, more consumption. But it will also lead to inflation and consumer hardship later. Then, there will be another round of government intervention. The cycle will continue.