And what is the Government`s answer to the problem they have created - shutting down their economies? Print more money. Make the currency of less value. This has the affect of looking like help has arrived but just makes the problem worse and stretches it out further. They call it QE, Quantative Easing.
Quantative Easing.
QE or Quantative Easing increases the money supply. Government bonds, (IOU`s) are bought by the Central bank and sold to other banks and institutions. They use the new money to buy assets or make new loans. It is a quick method of increasing the domestic money supply with the hope to spur economic activity.
However really the rich get richer and the poor get poorer. By the time the `new money` trickles down into the everyday life of people the value of their money now has less purchasing power.
In the picture we see illustrated that the rich countries have printed trillions of dollars of their own currency, (QE) leaving the rest of the world to bear the burden of cheap labour and goods.
Now the world is heading towards hyperinflation, their currencies are devaluating, there are food shortages, and the people cry out to their governments for the answer.
Quantative Easing.
QE or Quantative Easing increases the money supply. Government bonds, (IOU`s) are bought by the Central bank and sold to other banks and institutions. They use the new money to buy assets or make new loans. It is a quick method of increasing the domestic money supply with the hope to spur economic activity.
However really the rich get richer and the poor get poorer. By the time the `new money` trickles down into the everyday life of people the value of their money now has less purchasing power.
In the picture we see illustrated that the rich countries have printed trillions of dollars of their own currency, (QE) leaving the rest of the world to bear the burden of cheap labour and goods.
Now the world is heading towards hyperinflation, their currencies are devaluating, there are food shortages, and the people cry out to their governments for the answer.
