Others pay the price for US' woes

Fed's new round of quantitative easing will cause asset bubbles, inflate bulk commodities and cut wealth of debt holders

The US Federal Reserve has launched a new round of quantitative easing, which follows its announcement that its low-interest rate policy will be extended to 2015, a year longer than it had previously committed to, and that the "accommodative monetary policy" will continue even after the economic recovery gets moving again. The Fed also said it will purchase additional agency mortgage-backed securities at a pace of $40 billion per month in an effort to stimulate the struggling US economy.

Rather than setting a goal for a specific amount of money to enter the market as it did with the past two rounds of quantitative easing, the Fed instead said it will just keep buying those mortgage-backed securities until labor market conditions improve, an open-ended timetable for QE3.