{"id":23997,"date":"2015-01-25T19:40:59","date_gmt":"2015-01-25T18:40:59","guid":{"rendered":"http:\/\/www.w-t-w.org\/en\/?p=23997"},"modified":"2015-01-26T02:16:01","modified_gmt":"2015-01-26T01:16:01","slug":"money-matters-101","status":"publish","type":"post","link":"https:\/\/www.w-t-w.org\/en\/money-matters-101\/","title":{"rendered":"Money Matters 101"},"content":{"rendered":"

We are introducing our weekly newsletter which will focus on a topic of particular interest, explain the topic clearly and briefly and provide urls for articles we’ve recently run on the subject. \u00a0If you’d like to receive the newsletter in your inbox, send your email to wtwfinance@gmail.com.<\/p>\n

Quntitative easing is all over the news this week. Bond purchases are anticipated. \u00a0Rising and falling interest rates are suggested.<\/p>\n

The Federal Reserve Bank in the US bought bonds to help the country recover from the Great Recession.\u00a0 This is called “Quantitative Easing.”\u00a0\u00a0 More money is put in circulation.\u00a0 Hopefully lenders are encouraged to issue more loans so business is stimulated.<\/p>\n

The US Fed also lowered interest rates to almost zero.<\/p>\n

Now the US Fed has stopped buying bonds, and they have signalled that at some time interest rates will rise. \u00a0Signals are a way to let markets prepare for intended changes.<\/p>\n

The European Union is more complicated because there is a central bank for all its member nations and then national central banks for each member state. \u00a0It came as no surprise when Mario Draghi,\u00a0 the European Central bank’s president, announced this week that he would \u00a0buy bonds. \u00a0He did not suggest an interest rate rise.<\/p>\n

The. Central banks of member nations will purchase most of the risky sovereogn (or nation-specific) bonds. \u00a0These states are in.a position.to control their own economies and have a greater interest in seeing that the bonds do not default.<\/p>\n

The real question in what’s called QE is the nature of the bonds purchased.\u00a0 And who is taking the risk?<\/p>\n

\"Quantitative<\/a><\/p>\n

Quantitative Easing Worked<\/a><\/p>\n

Central European Bank Adopts Quantitative Easing<\/a><\/p>\n

Former US Treasury Secretary Doesn’t Think QE Will Work in EU<\/a><\/p>\n

Quantitaive Easing a Contagion?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

We are introducing our weekly newsletter which will focus on a topic of particular interest, explain the topic clearly and briefly and provide urls for articles we’ve recently run on the subject. \u00a0If you’d like to receive the newsletter in … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":22,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[9],"tags":[],"class_list":["post-23997","post","type-post","status-publish","format-standard","hentry","category-w-t-w"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t