What can I do when logged in?

You can submit new articles, so we can make unique versions of them and distribute them for you.
If you want to simply publish the same article on 800 websites, you can tell us to do that.
You can see the archive and current status of all your article distributions.
You can order any number of high-quality articles - just let us know your keywords.
You can browse the archive of all the articles we have written for you.
You can order our Complete Service (10 high-quality articles plus 10 article distributions).
You can purchase more credits for our services and check your affiliate earnings.
Much more ...

SpinDistribute.com Article Directory

The following article was published in our article directory on November 16, 2010.
Learn more about SpinDistribute Article Distribution System.

United States Economy Recovery Still Fatigue Difficult to Rise

Article Category: Business

Author Name: xia zihui

Federal Reserve policy of quantitative easing is the second round of positive steps. But far enough to cope with severe recession

The latest economic data show that even for the best case, the U.S. economic recovery is still weak. But the November employment report was released gratifying - the United States added 151,000 jobs. This is close to zero most economists had forecast, compared the situation much better, but not to the time of rejoicing. The United States must create 10 million jobs per month job to adjust to the labor force increased. This rate, the U.S. economy to date, more than a decade to recover lost 7.5 million jobs.

According to the U.S. the previous week reported third-quarter GDP data, the entire painful and bleak economic prospects. U.S. third quarter economic growth rate of 2.0%, slightly higher than expected, and most studies have focused here. However, these reports ignore the fact that economic growth in the third quarter, mainly due to a significant increase in inventories.

In the third quarter was the second highest inventory accumulation, which contribute to economic growth this quarter by 1.4 percentage points. Excluding inventories factors, third quarter economic growth was only 0.6%. If the fourth quarter, inventories increased back to normal, U.S. economic growth may be negative.

Quantitative understanding of the new round of Fed easing, we must consider the background. The U.S. economy is running well below its intrinsic potential, unless there is some external stimulus, or the near future is unlikely to resume its potential output. In the next eight months, the Fed decided to buy 600 billion U.S. dollars debt, is moving in the direction of a step stimulus.

This is the beginning of 2009 declared the first round of the quantitative easing policy to continue. At that time, the Fed bought $ 1,250,000,000,000 mortgage-backed securities, bonds and 300 billion dollars. At that time, the rapid decline in the U.S. economy. This practice will help drive down long-term interest rates, stable economy as a whole.

New initiatives to help reduce interest rates, despite the limited effect. Currently, the U.S. has dropped to very low levels of long-term interest rates, the Federal Reserve holdings of government bonds can not be pulled even lower, may result in the best interest rates expected to drop 30 -40 basis points. This can lead to the private sector, interest rates declined slightly, while the mortgage loans and corporate bonds, interest rates are also similar.

This will also help to promote growth, but is unlikely to make fundamental change in U.S. economic fundamentals. Small decline in mortgage rates, will not make housing market recovery will not lead to investment boom. Despite the positive response to the U.S. stock market, and will expand consumption through the wealth effect, but the impact would not be significant.

Value of the dollar may be affected the most. Since the Fed's determination to maintain low interest rates, investors may turn to alternatives to dollar assets. This will lead to the dollar, in turn, improve the U.S. trade balance. Shizaibiran weak dollar, the second round of the quantitative easing policy may speed up the process.

Nevertheless, the Fed's move is still disappointing. Given the severe economic recession in the U.S. and its long-term sustainability, to spend 600 billion U.S. dollars to buy bonds only very modest measures. More effective policy is closely pegged to the inflation target the Fed should not give up. If the Fed's goal is to maintain inflation at moderate levels (3% -4%), you can change the market's expectations, and thus change the market behavior.

If the most goods and services market is expected within four years 12% -16% price increase, even if in the current economic situation, the industry will be very willing to increase investment, and also help moderate inflation, the residents get out of debt. As residents of the debt in nominal terms, if inflation to wage rose 15%, 15% will reduce its debt burden. This will stimulate consumption and economic growth.

Price increase should also be synchronized with the general inflation rate. The next four years, if house prices rose 15%, will help a lot of people out of trouble. It will also help increase the number of rooms are trillions of dollars in wealth.

However, another benefit of the Federal Reserve holdings of government bonds are known. Fed holdings of government bonds and bonds do not pose any burden on the Government. This is because, although the Fed interest charged and interest will ultimately return the United States Treasury. Last year, the Fed returned to the Treasury 77 billion U.S. dollars of debt interest, net interest income which is equivalent to the government for nearly 40%. The Fed decided to buy and hold bonds, can prevent the burden of debt interest into the Ministry of Finance.

In short, the second round of the quantitative easing policy, in the current economic situation, is a positive step. But unfortunately, it is insufficient to fully offset the impact of severe economic recession.

Keywords: China finger splint, China waist seal and girdle,

Learn more about SpinDistribute Article Distribution System. We also offer a Pro Article Writing Service to everyone who needs premium quality well-researched articles.

SpinDistribute.com Network

Each article you submit at SpinDistribute.com is sent through our innovative Article Distribution System to our network of more than 1840 publishers - about 55% of them are high-quality article directories, 30% of them are niche blogs and 15% of them are other content-rich websites.

To achieve the best possible success we only publish your article to most related websites. This means your article will show up on approximately 640 - 880 most related websites which will give you great SEO results.

We also offer a separate Professional Article Writing Service to everyone who's looking for high quality web content and well researched unique articles.