Although he falsely says that the QE2 will create 700,000 jobs, did he do the math and see how much is spent per job????I did.
We need legislative change to create jobs. Bernanke only has one tool in his tool box, he may view this as desperate situation to create jobs and is doing his part against the odds or fudiciary responsibility, so to speak.
Exactly. The same is true for stimulus. Some say "let's just send everyone a $20,000 check." OK, why stop there. Let's send everyone a $1 billion check. The former would be mildly inflationary and may cause a temporary blip (similar to "cash for clunkers," "home buyer's credit," etc.). The latter is obviously hyperinflationary. Neither is a long-term solution, nor will they "jump start" some real period of prosperity. Of course these figures are completely arbitrary anyway. Despite what they may say, the Fed doesn't have a magical formula for "optimal QE" amounts any more than the President or Congress do for bailouts/pork-barrel spending (i.e., stimulus). In both cases, they try to come up with some number that won't cause too much backlash and will leave them the option to say "we just need to spend more" down the road when it fails.
We need a LEGISLATIVE OVERHAUL! What Bernanke is doing has NOTHING TO DO WITH OUR JOB SITUATION... and is only making things worse.
What Bernanke means is that when his bubble breaks we will need 700,000 lawyers and accountants to sort the mess.
If they gave everyone $1 billion in the U.S., would that be inflationary in just the U.S. or would it affect other countries' home and food prices as well?
Animated clip of "Quantitative Easing Explained" regarding QE2. A bit of humor among all the chaos, enjoy: http://www.youtube.com/watch?v=PTUY16CkS-k