-- Federal Reserve Treasury purchases will likely spur global inflation while failing to lower U.S. unemployment, according to Mohamed A. El-Erian, chief executive officer at Pacific Investment Management Co.
Quantitative easing, the strategy of buying bonds to cut borrowing costs, won’t be enough to deliver high economic growth, he said yesterday at a reception in New York sponsored by the Financial Women’s Association. The record amount of U.S. debt is another problem for the economy, said El-Erian, who is also co-chief investment officer at Pimco, which runs the world’s biggest bond fund.
“One thing that the Fed cannot do is stand still, it is terrified of deflation,” El-Erian said. “QE on its own means we’ll have the same issues in six to nine months time with the rest of the world being inflated.”--
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Comment: We've moved beyond the point of no return. Bernanke is out not only to destroy America, he is after the destruction of most of the world.
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