Wendy Sherman: “I come here to address the House on economic issues facing us this month and next month. And I come here to talk about…”

“I come here to address the House on economic issues facing us this month and next month. And I come here to talk about the good, the bad and the ugly. First, the good. The Federal Reserve Board is going to buy $600 billion worth of long-term bonds, quantitative easing. This will increase America's share of the American market for manufacturers' goods. That's why it has been condemned by China, Germany and Japan, because they know it means moving jobs from Germany, Japan and China to the United States. This is an effective tool that is reversible. We can expand the money supply now, and then the Federal Reserve Board can reverse its action when the economy improves. Therefore, it involves no increase in the money supply that is permanent and, of course, involves no increase in our national debt. The unemployment rate is over 9.6 percent. We need to act to bring down that unemployment rate. And the Fed is to be commended. This does not mean that its decision is risk free. Just, given all the risk that we're confronted with, this is a good move.”