Turning Uncle Sam’s Tap Off

 

The big news coming from across the water is that the Federal Reserve (think Bank of England with a difference accent) will end its financial support to the US economy from October.

 

The US Government has been pumping as much as $85 billion a month to prop up its economy……or the equivalent  of what ‘we’ spent to save RBS!

 

The big question has been when will the financial aid end……now that this is known, the even bigger question is what will the impact be?

 

When you stop injecting money into the biggest economy in the world, it will have a knock on effect. Or to put that another way……what will be the impact to the UK when the biggest buyer of our goods and services has less money in their economy?

 

One thing is for sure, pumping that kind of money into an economy is not sustainable and standing on its own feet can only be a good thing for the US long term. Let's hope it is for the UK also!

 

Time will tell.