Loading ...The Federal Reserve has put 200 billion dollars into American markets today, which is no small sum of money - and no small sum of money that the Federal Reserve had to give. Though the stock markets responded positively today, with the Dow Jones Industrials up over 400 points, the additional money will only further devalue the currency and increase the inflation being experienced by the Americans in the long run.
Though the move would have likely hurt the dollar on the world markets today, similar moves were taken by several other central banks, including Europe’s and Canada’s, thus having the effect of all currencies being devalued at the same time so as to stay on relative par with each other. This collective move does not, however, avoid the long term effects within the nations themselves of a devalued currency, only the exchange rates with other nations. Indeed - the move will only provide a temporary respite, while prolonging the crisis itself by contributing to the very reason it exists in the first place.
Ron Paul spoke to Neil Cavuto today on the issue.
(Photo credit to Zesmerelda.)
2 responses so far ↓
1 Fed Pumps $200 Bil Into Markets // Mar 11, 2008 at 7:57 pm
[…] Chris Arndt wrote an interesting post today onHere’s a quick excerptFed Pumps $200 Bil Into Markets March 11th, 2008 7:26 pm by Rangeley · […]
2 Rebel with a cause // Mar 13, 2008 at 8:49 am
So the government subsidizes those companies that made bad business decisions with a 200 billion bailout, by either printing more money which devalues the currency further, or by using the common citizen’s tax dollars. And the upshot is the Dow goes up, profiting the stockholders.
Some free market.
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