Can the great economists out there enlighten me?

I was reading an article by (supposedly) an expert in economics. In which he tells us that the US Federal Reserve has managed to pull US out of a recession by

1. Cutting interest rates aggressively
2. The stimulus package where they will send 1000 dollars to all tax payers in US.

Sounds great Mr. Economist so a problem as complex as the above can be solved by taking these two steps. Sounds too easy to me…

Question’s Mr. Economist.

1. Just wondering if high interest rates are such a problem then why not keep them at 0% forever. I mean they can bring it up and down at will why not keep it there.

2. Why send only 1000usd's send 10,000 after all they have control over the printing press. Print as much as people want and let them have it to all to consume...

Another question why is something valuable? What is value?

I guess it’s something to do with the fundamental law of economics… Law of Demand and Supply... More demand less supply thing is valuable… more supply less demand thing is worthless...

So more printed dollars less commodities (like oil, food…) to buy leads to valuable commodities and worthless dollars...

Is it that difficult to figure it out…? Anyways I hope the smart people in America know what they are doing.

Comments

Maarrun said…
couldnt resist...spend more than a couple of a min....

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