10 Sobering Facts About the National Debt
6. Effects on Currency
Under Obama, the Federal Reserve has been engaging in quantitative easing. In simple terms this is when the government buys financial assets from private sector banks and institutions in order to increase their prices while simultaneously expanding the monetary base. That means they are creating money out of thin air while artificially propping up the market. It’s kind of complex, but the result is a weaker dollar, which means higher costs.
