I know there are many other things to discuss in the Ricochet community, but I thought I should put a placeholder for comments for the question above.
The Federal Reserve, yesterday, announced it will now pursue zero interest rate policy into mid-2015, by purchasing even more mortgage backed securities at $40 billion per month. They do this by printing money. They are also extending their Operation Twist program of finding whatever short-term securities they can find and selling them in return for longer-term maturities. It's hoped that will decrease mortgage rates and lending rates; it has the additional effect of reducing the debt service costs of the U.S. Treasury.
Concerning the discussion of what I'd tell Romney/Ryan, I'd've run to the nearest microphone and said this shows the failure of Obama economic policy. Obama has taken us to a position where the only policy they seem willing to take is zero interest rates for the entirety of the next administration. (They've probably done this, but the press is probably preparing to ask Romney if those comments are premature since we don't know what economic growth in 2014 will be yet.) The House Republican Conference has already done the hard stuff, guys. Get to work.
I'd also make the point that the Fed is playing a dangerous game with inflation in the long run, and is just giving away revenue to the banks in the short-run. Those banks hold the MBS that the Fed will buy in QE3. Rather than lend that money out, banks are parking that money with the Federal Reserve, which is paying them interest for it. That's right, folks: The Fed is paying banks for not lending money to the economy. And then it says in its statement that business investment is down, and can't seem to see why.
Take it away, Ricochetland! Do you care? Or is this a non-story?