Fed's Back Printing Money - So What gives? - Crudele / New York Post
"Although there's been no official announcement, the Federal Reserve has restarted QE - better known as Quack Economics.
You might know it better as Quantitative Easing, in which the central bank buys large amounts of government bonds or other assets to help stimulate the economy. There have been three of these QEs since the financial crisis more than 10 years ago. But the big question now: Is there a new crisis that has the Fed dusting off QE? The Fed isn't saying...Here's how it works: The Fed electronically prints trillions of dollars in extra money, which it uses to purchase bonds and other securities. This was supposed to keep interest rates low. And the low interest rates were supposed to help the economy grow....QE didn't do much to help the economy, which has been stuck at around 2 percent annual growth for years...Last week the Fed announced that it would start purchasing $60 billion a month in securities from the open market. This is the same as QE only the Fed didn't call it that. So, if the Fed instituted Quantitative Easing in the first place in 2008 because there was a financial crisis, what's the problem now?....The political crisis in Washington would be my best guess. Although others in the media won't admit it, there is currently a constitutional crisis in this country...Or, maybe the economy is really doing as well as we are led to believe by government statistics. Maybe the Fed knows something we don't."