Federal Reserve Keeps The U.S Economy Going by printing more paper money; This
prevents the U.S From Defaulting against its debt ceiling while putting us further
and further into Debt.
What is quantitative easing and why should we care?
Like a life support system for someone who's been in a major car accident; If you turn off their life support system what hapens to the patient? They Die.
The same is True with "Quantitative Easing For Our Economy" Quantitative Easing is the financial life support system/process that keeps our economy from dying.
In Short; Quantitative Easing is when the Federal Reserve Prints more money out of thin air to give to banks to keep available currency in circulation. In short "There's not enough money availble in the economy; so they print more"
If the economy starts to go bankrupt and sink; The federal reserve will pump out newly printed money to stimulate the economy to keep it afloat. How ever, by doing this it forces our country further into debt with each bill printed.
If you turn off the printing presses, our economy will bankrupt itself from debt
Quantitative Easing And How It Works
Quantitative Easing Explained
or "QE" is the paper printing stage where the Federal Reserve will "print new money"
(Federal Reserve Notes: IOU's) which have no real value. This paper money is created out of thin air like if you scanned a $1 bill and printed it at your home printer except it's "acceptable because they did it**
Think of the United States as a "Raft" and is floating between the Pacific & Atlantic Ocean.
The raft is not full of Air, But Money $$
The problem is; the raft has tiny holes in it, and all the money is leaking out. As the raft (holding the Nations Economy Up) starts to sink; The federal reserve will start printing more money to inflate it back up "temporarily" to keep it above water.
Problem is: Each time they print the U.S Government (loan us) money to inflate the economy raft, we then OWE MORE TO THEM in debt each time they "QE" print us money.
E.G: Think like a car loan, you take out a loan for $20,000 but can't can't make your payment; so you take out another loan to make your payments. Then when that loan runs out you do it again from another bank.. what happens?
Eventually you fall so far in debt, no one will lend you any more money and everything collapses.