About 30 minutes ago Fed Chairman Ben Bernanke, as expected, announced another round of quantitative easing (QE3) in a futile attempt to stimulate our moribund economy. This is simply throwing good money ($40 billion per month) after bad. In addition to the aforementioned bond buying program he guaranteed that rates will remain exceptionally low until at least 2015. While this is great for borrowers, it is punitive for the elderly and those living on fixed incomes. Worse, it will likely have little or no affect on the economy in the short run and will undoubtedly add to the growing fiscal crisis that we’re facing. The government, and by extention the Fed, should cease in it’s fruitless efforts to contravene market forces and allow the economy and the stock market to ebb and flow according to their normal market cycles. While the stock market liked the move today, which is good for me and my clients, especially those of us holding gold, I worry about the long term consequences.