For the past six years, many people have asked me why we don’t have runaway inflation in this country. They tell me how the Fed has printed trillions of dollars and that it is only a matter of time before we see the dollar collapse and prices spiral. Here is my opinion on why this hasn’t happened.
When the U.S. economy gets sluggish, the Federal Reserve lowers interest rates. When the U.S. economy is nearly dead, they lower interest rates and then leave them low for many years. Part of the plan the Fed has used to stimulate economic growth has been labelled “quantitative easing” (QE).
Read more...Quantitative Uneasing | the Blog of the Real Estate Center
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