In his penultimate testimony recently, Federal Chief Ben Bernanke suggested that the QE measures had greatly helped the economy.
The infusion of money did indeed stabilise the economy and create jobs on an on-going monthly basis, helping people buy autos and houses, and adding to consumer confidence in the U.S., which has become one of the fastest recovering nations post the 2008-crash. The QE measures introduced in August 2011 helped to propel the economy from a negative loss of confidence to a positive full of hope and promise and enterprise culture. The QE measures helped to finance the government departments as well as the social net, and has got some of the pick-and-shovel jobs under way, although not as many as may have been envisaged.
Secretary for the Treasury Jack Lew is characterised as pleading for action on the issue of the debt ceiling, but of course this issue cannot have escaped anyone's attention. A logical time for resolution of this issue in somewhere mid to end October, when Mr Bernanke may be stepping down, having served his nation in a most admirable way.
The $40 billion a month stimulus under the first QE measure must have clocked up a trillion just after two years and one month. The additional stimulus of $45 billion a month in buying of mortgage-backed securities has been in place for nearly a year, and that tots up another half trillion or so. All told, the authorised stimulus which was the debt ceiling was around $1.45 trillion, plus a further $700 billion from banks and private or public concerns. The money has swirled in the system and created much happiness for so many people, and sustained livelihoods and restored confidence, not only in the USA, but around the world. The dark days were when diamond merchants in India were standing idle, because American men had stopped buying diamond rings for their fiancées. The whole supply chain from South Africa to Antwerp to Tel Aviv felt the effect. Thankfully, those days are gone, and we all have to thank the return to confidence that has enabled consumers believe in a good life and live with hope. When people have received loans and mortgages, their purpose has been filled with joy. May that continue for the foreseeable future, as hard work and enterprise turn into wealth, going round and serving more. A growing circle of enterprise and industry in each nation has given added confidence to increased trade as well as growth at home. When the global locomotive of growth drives along, it is music to the ears of people everywhere, be it China, India, the Middle East, Africa, or South America, not to forget Japan and Australia. Growth and enterprise is good for the world, as each nation trades their unique resources, creating work and purpose, confidence and enterprise.
The cash-flow that the stimulus measures provided have been a great blessing, creating many jobs, creating many livelihoods, helping many families survive and recover from the savage recession that beset the world, and with the creation of activity, opening of factories and workshops, improving purchase of goods both utilitarian and luxury, improved number of travellers and visitors globally, it seems the economies are set for further growth to Prosperity.
Secretary of Treasury Jack Lew and colleagues will know what measures are necessary. President Obama and House Speaker Boehner will ascertain what is necessary and prudent for continuation of the economic Recovery. Positive developments on this with bi-partisan co-operation will herald the path to Prosperity. Trusting in good judgement, no one should have concern.