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Bernanke dilutes the currency by $600 billion. That means that the value of the dollar shrinks, making exports cheaper abroad. That helps Boeing sell airplanes overseas and those are good paying jobs, but not many of them. It also makes oil and timber more expensive to import from Canada. Oil is like a tax and making homes more expensive means fewer construction jobs. That is pretty much an offset. It hurts China with the Yuan pegged to the dollar so I guess it is not all bad.
It also affects the supply of bonds by decreasing supply. A smaller supply should cause the price of those remaining go up, causing the yield to go down. If the cost of money was the issue this should help with job creation resulting from increased borrowing by companies but the cost of money is minor when demand is weak, like it is.
On balance this just looks like a lot of shuffling around with a smattering of jobs created. The disruption to markets could make this a net loser though. Bernanke has said that Congress needs to do more to cause demand to increase, exactly what the newly elected Tea Baggers have said they will not do, period. Expect more drift and very slow growth until Bernanke gets more forceful with his jawboning -- something Fed Chairmen have been loath to do. Will Bernanke step into the area of fiscal policy and risk the rath of Congress telling him to keep his nose out of where it doesn't belong. It could get quite tense and interesting. Incredibly, this is just what the voters just said they wanted, whether they realized it or not.
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