Quantitative Easing

At this point in time the federal reserve must consider additional precautions in ensuring continued progress with this recession. Currently the U.S. is so laden with debt and interest rates have been so low for so long that the next bullet in the Feds arsenal will undoubtedly be quantitative easing. This is a form of monetary policy used by the central banking system to artificially increase the money supply by crediting its own bank account with money it has created out of nothing. It then purchases bonds and other assets and this process is also coined as printing money. The trick is to not flood the economy with to much money to fast, this is called monetary velocity, and the risk is hyperinflation. Ben Bernanke recently stated that the outlook for this economy is unusually uncertain and is prepared to take additional steps if needed, what those steps are will remain to be seen.