Last week, the US Fed announced another round of money printing programme known as QE3. It was reported that US$40 billion of new money will be issued every month until the US jobs situation improves. Since 2008, the US government had purchased trillions worth of Treasury securities, hoping to revive the economy and stimulate job growth. However, the strategy doesn’t seem to work and US unemployment remains stubbornly high at about 8%.
I am not surprised that the US Fed announced this QE3. This stimulus measure comes at a time when the US citizen is voting for a new president. President Obama’s job is on the line, so he has to make a last-ditch attempt to win votes and┬áplacate the citizen’s rising unhappiness over the persistenet high unemployment rate. But whether this third round of money printing will be effective is a big question mark. The previous two round of …