Quantitative Easing Explained Easily by Jim Foster at Lloyds International in Brazil

Sept. 18, 2011 - PRLog -- Quantitative easing is a complex sounding term but in reality it is pretty simple. It means printing more money.

Let's say that a large bank for example Wells Fargo is holding $20 Billion in government issued bonds.

The Fed then buy the bonds from Wells Fargo but how do they get the money? Simple. They print more money.

Now Wells Fargo has $20 Billion in funds that they can use to lend to businesses and consumers who in turn will spend the money thus stimulating the economy.

In reality the process is likely to lead to increased inflation and therefore reduced buying power for the dollar.

It's simple but fraught with danger for Obama's government and only creates a short term solution for a very deep problem.

We will find out if the next round of Quantitative Easing (QE3) is on the cards when Ben Bernanke et all meet on the 20th and 21st of the month to discuss how they will jump start the U.S. economy.

Jim Foster, a Senior Broker at Lloyds International in Brazil says "The economy may be stimulated in the short term by QE3 but as investors come to see the reality and a hike in inflation they will run to safe haven investments in their droves"

Read what Jim Foster thinks about gold at http://www.prlog.org/11663297-gold-pull-back-likely-next-...

Jim Foster and various other Senior Brokers from Lloyds International along with Director of Institutional Trading, John Logan will be attending the Latin American Investment Forum at the InterContinental, São Paulo in Brazil between December 12-13. For further info contact Jim, RIck Amory or Mark Goodman at Lloyds on +1 866 978 7654.

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Commodity trading services to clients in over 60 countries. Lloyds International offers a state of the art trading platform to each of our clients from our offices in Brazil and Costa Rica. FInd out more about the Lloyds advantage http://www.lloydsint.com