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I agree. The problem is, everyone knows what will happen when the facet is turned off. Interest rates will climb and the stock market will correct, and by that I mean plummet. A slow taper would be best, and there is some evidence that this has been well underway.
The problem largely has to do with our political system. Everyone is bought and paid for. All of our economic czars were former banksters themselves. There are reasons why the rich are getting richer, and not much else changes. Our forefathers would call this treason.
Ironically, QE3 taper might have been sooner without the government shut down. And if this happens again in February, then it may stave off taper, yet again.
... All of our economic czars were former banksters themselves. There are reasons why the rich are getting richer, and not much else changes. Our forefathers would call this treason.
I don't know why they didn't call on plumbers instead?!
It's come to the point where the markets do well each time there is another mediocre jobs report since that means QE3 is more likely to continue.
The economic crisis is over, the market is near all-time highs. It's time to get back to normal economic policy
In principle, I agree.
In practice, given all the bloat in the economy, maintaining the money supply (raising debt levels) is essential to keeping the body social alive, including the healthy parts.
The US (but other countries of early industrialization as well) is analogous to an obese person, or a drug addict: a starvation diet, or cold-turkey withdrawal, would kill the patient; instead it has to be done gradually.
To put it in economic terms, decreasing the money supply (reducing debt) too quickly would seize up the national payments system ... like cutting off blood supply to the body, however bloated in some parts and healthy in others.
Quote:
Originally Posted by andywire
A slow taper would be best, and there is some evidence that this has been well underway.
Quote:
Originally Posted by shaker281
Ironically, QE3 taper might have been sooner without the government shut down. And if this happens again in February, then it may stave off taper, yet again.
Quote:
Originally Posted by andywire
The problem largely has to do with our political system. Everyone is bought and paid for. All of our economic czars were former banksters themselves. There are reasons why the rich are getting richer, and not much else changes.
The monster has two heads, but the body is one. And the two heads play the Tea Party like useful idiots.
Since January 2011 up to now, we have experienced a queasy equilibrium and I don't expect it to change significantly in the December 2013-February 2014 period, maybe after November 4, 2014, but maybe not, we'll see.
They cannot "taper" because QE is the only thing giving an illusion of a recovery. The only hope is for the rest of the world to stop using dollars which will collapse the Fed. I would do anything in my power to see the Fed end.
They cannot "taper" because QE is the only thing giving an illusion of a recovery. The only hope is for the rest of the world to stop using dollars which will collapse the Fed. I would do anything in my power to see the Fed end.
In fact QE is going to increase, not decrease.
The FR has made it clear that they do not plan on any action on QE until unemployment is down to 5%. And the U S will get there since a good portion off jobs being created are PT due to the private sector trying to avoid Obamacare.
The reason Obama picked Yellen is she will keep QE rolling along.
I know I get so mad about how the Fed has killed the US economy and ruined our futures. If I had a button to push to make the Fed disappear, I would be reaching for it as fast as I could. They have no redeeming qualities other than being in a nice historic building that I would convert to a museum of monetary madness starting with the money changers of Jesus time. Centralized monetary planning is the reason why a wealthy parasite class has ruined what science and technology had created. We should have 80-90% unemployment while the rest of us enjoy dividends from the capital we own. Instead we have Big Brother owning our homes, bossing us around and killing us. The general public is like animals (sheep) and can never come together to kick the money changers out, so we are doomed to debt and failure.
If people would stop believing the MSM propaganda and just think about how things really are. We have so much potential for economic progress but waste it running around in circles. Being busy in a job is meaningless if nothing useful is produced. We cannot all mow each other's lawns and build value can we?
QE needs to come to an end, but in the short term it may be increased as a result of the Tea Baggers.
Why start a thread on QE? Start a thread on the gerrymandering of these districts in bumfunk. That is why these Teabaggers keep getting elected to office.
I think we should just give them Mississippi and they can outlaw abortions, praise Jesus and shoot anything whenever they want. Heck, they can get put mustache's on Obama for all I care. Just tired of hearing this moronic ignorant hillbillies.
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