FED’S “QUANTITAVE EASING ACTION”– MORE THAN A MOVE FOR US ECONOMY REVITALIZATION?*

On March 18th 2009, FED has made a move it hasn’t done since 1960 (the so-called Operation Trust conceived by the Kennedy administration): it stepped into the market in order to buy long term securities for an amount of some 1.25 trillion dollars. FED also said this program could be expanded to include a lot of other financial assets. The key issue here is the money resulting from this quantitative easing action taken by FED has not US economy as main destination, but, throw IMF, US are due to become the main creditor of the world.