Circulating Money Supply: Why the QE3 Won’t Jumpstart Economy & the World?

The economy could use a good dose of “aggregate demand”—new spending money in the pockets of consumers—but QE3 won’t do it. Neither will it trigger the dreaded hyperinflation. In fact, it won’t do much at all. There are better alternatives. The Fed’s announcement on September 13, 2012, that it was embarking on a third round of quantitative easing has brought the “sound money” crew out in force, pumping out articles with frighting titles such as “QE3 Will Unleash’ Economic Horror’ On The Human Race.” The Fed calls QE an asset swap, swapping Fed-created dollars for other assets on the banks’ balance sheets. But critics call it “reckless money printing” and say it will inevitably produce hyperinflation. Too much money will be chasing too few goods, forcing prices up and the value of the dollar down. All this hyperventilating could have been avoided by taking a closer look at how QE works. The money created by the Fed will go straight into bank reserve accounts, and banks can’t lend their reserves. The money just sits there, drawing a bit of interest. The Fed’s plan is to buy mortgage-backed securities (MBS) from the banks, but according to the Washington Post, this is not expected to be of much help to homeowners either.

War on Iran Will Trigger World War III: A Protocol of Non-Aggression Should Be REACHED Between ISRAEL And IRAN!

Both the US and Israel have threatened to implement a preemptive first strike attack against Iran, the consequences of which would be devastating… Reverse the Tide of War We call upon our readers to spread the message far and wide. We call upon people across the land, in America, Western Europe, Israel, Turkey and around the world to rise up against this military project, against their governments which are supportive of military action against Iran, against the media which serves to camouflage the devastating implications of a war against Iran. The people of Israel are largely united against Prime Minister Netanyahu’s resolve to attack Iran. A protocol of non-aggression should be reached between Israel and Iran.

Attack on Iran during Gulf War Games Unlikely

The war of words between Israel, Canada, the USA and Iran has turned ferocious but it is unlikely that the the US-led 30 nations naval exercise IMCMEX 12, held in the Persian Gulf between 16…

US Military, together with Its NGOs, in Nepal for “Humanitarian Mission”? To Grab Strategic Territory Close to China?

Early this week, sixty-five American soldiers landed in Kathmandu and moved to Dhikurpokhari of Kaski district of Nepal. They are also travelling in Manang and Mustang districts bordering China’s Tibet region. Ostensibly they are on a “humanitarian mission” of assessing the quality of healthcare services available to the local people. They have been meeting health workers and holding talks with NGOs working in these parts. This job could have been better accomplished by a team of public health experts in civilian dress.