The implications of QE 3 could be as far reaching as decades forth due to possible accounts of hyperinflation, and may not still rekindle the economy to a point of its past growth. While chairman bernanke thinks this is the right cause, and the stock market is rallying as such, the creation of jobs in order to lower our unemployment rate may not be a direct effect of large scale asset purchases and the continuing ease of credit access, due to a combination of low corporate spending and depressed consumer confidence and retail sales purchases. What investors and businesses need to understand is that we are in a new normal sense of reality, long gone are the days of using your home as an atm and the gross expansion of real estate. GDP growth will continue in the 2 to 3% range for the near future. What needs to be done to curb our national debt and increasing spending is an adjustment to government special projects funding, reassumption of social security inflation assumptions, increased education, lowered corporate tax rate to repatriate jobs, and continued support for innovation in technology.
