Ellen Brown on Why QE2 Failed

07-13-2011 • arclein

n June 30, QE2 ended with a whimper. The Fed’s second round of “quantitative easing” involved $600 billion created with a computer keystroke for the purchase of long-term government bonds. But the government never actually got the money, which went straight into the reserve accounts of banks, where it still sits today. Worse, it went into the reserve accounts of FOREIGN banks, on which the Federal Reserve is now paying 0.25% interest.

1 Comments in Response to Ellen Brown on Why QE2 Failed

Comment by Olde Reb

Entered on: 7/13/2011 4:46:47 PM

The bonds purchased by the FOMC from the foreign banks via QE2 accomplished their purpose; they put cash in the foreign banks and postponed total collapse. Perhaps it was not enough to rescue them, if there is enough money in the world to rescue them. What has happened to the $8.4 trillion handled by the FRBNY from Treasury auctions last year that was hidden from Congress? Ref. http://www.freepatriot-press.com/2011/06/rip-off-by-federal-reserve.html

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