How is this Quantitative Easing (QE) different from the prior QE?There are two main points of departure between the two QE programs:
- The level of global support for such efforts
- Where the money was/is targeted
A Bridge to Fiscal Sanity? The Federal Reserve will buy $110 billion a month in Treasuries, an amount that, annualized, represents the projected deficit of the federal government for next year. For the next eight months, the nation's central bank will be monetizing the federal debt. This is risky business. We know that history is littered with the economic carcasses of nations that incorporated this as a regular central bank practice.