Quantitative Easing[QE] Must Stop Nor Divert To Poor
Ben Bernanke Management want to continue to buy USD$ 85 Billion Bond every month, which he thinks will be bringing the United States Economy back on growth track. He kept the Interest Rate near to zero, which he will be changing when the unemployment level will reach 6.5%. But the Federal Open Organizing Committee [FOMC] want to stop it and want to hike the Interest Rate. But what Ben Bernanke Management can do is giving Quantitative Easing will he helping the corporates, but instead they can continue to give it to people who're working in Public Sectors or People living below the means. This will automatically create demand in the market, as they're good spender's. But even if Republic Government comes nor Democratic Government, the gainers will be the Corporates. They with due intensity spoil the market or change it according to their benefits.
Last week as i mentioned, Stocks will rise and Bonds will come down. Asset purchases will not be guarantee reduction in unemployment level. Every month will not guarantee increase in employment level. It\s a see-saw act, as June month shows an increase of 195,000 level of employment level. But the month of July will not be showing more than 195,000 level of employment, but will be showing a lesser one. Second thing, keeping the Interest Rate near to zero will not be creating investment. For this, the Government Management want to create the total demand of the economy. For this the policies must be directed towards low income group and middle income groups respectively. But due to more Quantitative Easing [QE], Price Inflation can rise as it's not increasing productivity nor creating value. This much money which had been pumped will automatically start to feel the heat by the third quarter of 2014 or even before.
US Government Management must plan to bring the gap between the poor and the rich, and the gap between the G-7 countries and Developing countries. If not, the G-7 countries will be suffering more in the years to come. United States economy will be having the take-off faster. Invest in U.S Stocks and gain more.
Keywords: Management.
Last week as i mentioned, Stocks will rise and Bonds will come down. Asset purchases will not be guarantee reduction in unemployment level. Every month will not guarantee increase in employment level. It\s a see-saw act, as June month shows an increase of 195,000 level of employment level. But the month of July will not be showing more than 195,000 level of employment, but will be showing a lesser one. Second thing, keeping the Interest Rate near to zero will not be creating investment. For this, the Government Management want to create the total demand of the economy. For this the policies must be directed towards low income group and middle income groups respectively. But due to more Quantitative Easing [QE], Price Inflation can rise as it's not increasing productivity nor creating value. This much money which had been pumped will automatically start to feel the heat by the third quarter of 2014 or even before.
US Government Management must plan to bring the gap between the poor and the rich, and the gap between the G-7 countries and Developing countries. If not, the G-7 countries will be suffering more in the years to come. United States economy will be having the take-off faster. Invest in U.S Stocks and gain more.
Keywords: Management.
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