QE and the road to nowhere

Greenspan has recently noted that besides weaking the value of the dollar which in turn helped the expansion of imports, there really has'nt been any revolutionary consequences from the influx of money into the market. He even goes as far as to say that QE3 would not do any good but weaken the dollar.

What is QE? Basically QE is priming of more dollars into the market by the federal Reserve. The Economist Thomas Sowell in the last couple of months has noted that getting credit is extremely easy and banks are basically hording the green in their reserves, so one might ask why we are essentially still in a recession? The main answer to that question is that the environment to do buisiness has not imporved. Government is still borrowing more than it can be hold accountable and regulations keep making their in bills enacted by politicians who believe that government has the duty to keep a more vigilant eye in the affairs of buisiness. These regulations also include artificial rises in health costs due to mandates, zone laws, restrictions on permit uses, rising costs in some states through taxes due to their obligations to balance the budget, and recless spending projects which only bring about short term growth and political points.

Though Allen Greenspan is to blame for lowering the interest rates at the begginign og the decade, it was the policies that went hand in hand with these adjustments that cumalited ultimatelty in the housing crisis of 08. Now politicians are afraid of losing their seats in power and influence if they don't look like they are doing anything. In many cases, politicians doing something is exactly what continues to hurt the economy even more.

The late Senator Robert Byrd was a champion for stimulating the economy of West Virignia by engaging in audacious road projects. Over the last several years, people have began to critize his highway contruction projects precisely because they lead to nowhere. Lanes upon extra lanes were made in the name to bring more business to the state, however it became simply a project to appease his voting base by promising over 20 million in subsidies over the last 40 years to continue financing such projects. If Byrd was able to get away with this scandal, how well is the rest of our taxpayer money being spent over the country. This is just one state mind you.

By continueing involvement of this adminstration into the economy and elaborating on Quantitative Easing, Washington is indeed paving a road for America, however, this road leads to nowhere.