“It obviously had some effect on the exchange rate and the exchange rate
was a critical issue in export expansion,” he said. “Aside from that, I
am ill-aware of anything that really worked. Not only QE2 but QE1.”
The Federal Reserve’s massive stimulus program had little impact on the U.S. economy besides weakening the dollar and helping U.S. exports, Federal Reserve Governor Alan Greenspan told CNBC Thursday.
In a blunt critique of his successor, Fed Chairman Ben Bernanke, Greenspan said the $2 trillion in quantitative easing over the past two years had done little to loosen credit and boost the economy.
“There is no evidence that huge inflow of money into the system basically worked,” Greenspan said in a live interview.
“It obviously had some effect on the exchange rate and the exchange rate was a critical issue in export expansion,” he said. “Aside from that, I am ill-aware of anything that really worked. Not only QE2 but QE1.”
Greenspan’s comments came as the Fed ended the second installment of its bond-buying program, known as QE2, after spending $600 billion. There were no hints of any more monetary easing–or QE3–to come.
Greenspan said he “would be surprised if there was a QE3” because it would “continue erosion of the dollar.”
Shorter Greenspan: We tried to warn them.
Ah yes, the “unexpected” consequences of The Left’s Holiday from Sane strike yet again. The countdown to a proposed QE3 starts now, since 0bama and his administration are all about reinforcing failure.
In other related news, “TurboTax Timmy” Geithner joins the rest of 0bama’s original Economic Team in looking for the door:
By Hans Nichols | Bloomberg
Treasury Secretary Timothy F. Geithner has signaled to White House officials that he’s considering leaving the administration after President Barack Obama reaches an agreement with Congress to raise the federal debt limit, according to three people familiar with the matter.
Geithner hasn’t made a final decision and won’t do so until the debt-ceiling issue has been resolved, according to one of the people. All spoke on condition of anonymity to talk about private discussions.
An exit by Geithner would complete the turnover in Obama’s original economic team, with Council of Economic Advisers Chairman Austan Goolsbee scheduled to leave in early August to return to the University of Chicago.
Looks like all the rats are departing the sinking ship of the 0bama administration…