The US FED is taking the last step to revive the ailing economy. It first tried giving tax breaks to individuals and companies in the early 2008 , which never worked.

Then it resorted to massive interest rate cuts over the last several months, which also does not seem to be working. The interest rates are at near zero levels and still bank credit to individuals and industry is not normalized.

Now, the US FED is resorting to the last available tool of printing more new currencies. Yes it has decided to print up to 1 trillion dollars worth of new currency over the next few months, to buy back toxic papers from the ailing banks.

It feels that this drastic action might help revive the US economy. If it does it is good for the whole world. If it does not work, then the entire world is likely to see a long drawn recession.

There could be lot of smaller countries which may get into depression.