The CEO and chief global strategist of Euro pacific Capital Inc, Peter Schiff, believes that quantitative easing is a problem for the US economy, not a cure.

All we in the UK have to do is transpose what he is saying across to this country.

The US economy is stalling and has disappointing figures across the board so many are calling for more QE and President Obama says that ‘we need to keep people on the job’ as he looks at extending T-bills due for redemption next month. While Wall Street, JP Morgan and Goldman Sachs want more quantitative easing in the form of QE3 (a third round of QE) Schiff says that all it does is keep Wall Street and the government rattling along at the expense of the rest of society.

Schiff says that QE3 is basically a certainty as QE2 did not work and no-one is learning the lessons of the past so the same old mistakes will be made. And many pundits are pointing at QE3 (money printing) happening in the next few weeks unless something stunningly good happens to the economy very soon.

All that is happening, Schiff says talking to Lauren Lyster on RT, is that the Fed is making it easy for the US government to borrow and spend and boosts equity markets for Wall Street as well as bonuses for bankers as Treasuries are flipped.

But for the rest of the population it provided no benefits at all. ‘What’s good for Wall Street is not good for America’ he says, adding that the US economy has too much GNP in finance instead of making things but the government insists on propping the finance sector up with cheap money.

Higher interest rates Schiff says would force responsibility onto the government. The money, based on savings that attract a good return, should be channelled into the real economy.

And just take a look at the amount of reserves that have accumulated and just sits in the form of Treasuries at the Fed since the start of the credit crisis as shown by the RT graph.

A compelling argument and a good informative video.

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