Eric Sprott: US In a Recession, and Stimulus Policies Won’t Help [moneynews]
July 31, 2012 Leave a comment
The United States has likely slid into another recession despite repeated attempts by the Federal Reserve to jolt the economy with stimulus measures that, in reality, have done little more than inflate asset prices, said Eric Sprott, chairman of Sprott Money Ltd.
Since the downturn several years ago, the Fed has rolled out two rounds of quantitative easing (QE1 and QE2), which injected a combined $2.3 trillion into the economy to stave off decline via buying bonds held by banks, a policy often dubbed as printing money out of thin air that sows the seeds for inflation down the road.
Weak economic indicators are fueling talk that the Fed will roll out a third round of quantitative easing.