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Old 08-16-2010, 10:44 AM
 
Location: San Diego California
6,797 posts, read 6,647,128 times
Reputation: 5180

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Quantitative easing hurts working people in order to protect asset values for banks and other financial institutions.
The common man is experiencing their paycheck purchasing less in terms of day to day expenses, while at the same time their prospects for future pay raises is dismal.
Working people are seeing increases in almost everything. Five year old used SUV's are priced at $15-20K, a dinner out for a family of four will run $75-100, insurance rates are up, utility bills are up, taxes are increasing, auto registrations are increasing, schools are now charging for bus service, and the list goes on.
The government is now planning another round of QE which will make all of this worse for everyone except banks. Banks will be the beneficiary’s of the QE. QE will make it possible for them to use free money supplied by government to speculate in equity and commodities markets, which is their primary source of income now as they have cut back radically on lending.
If you are hurting in this economy, it is time to tell your elected representatives that we do not want QE; we do not want increased government spending. What we do want is for government to stop manipulating the markets to benefit banks. What we do want is for government to balance its budget and stop spending the rest of us into the poor house.
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Old 08-16-2010, 11:14 AM
 
Location: Planet Eaarth
8,955 posts, read 18,784,145 times
Reputation: 7193
//www.city-data.com/forum/busin...ng-begins.html
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Old 08-16-2010, 12:23 PM
 
82 posts, read 324,012 times
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Well said, Jim. We can tell them all what we think soon enough at the ballot box. ;-)
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Old 08-16-2010, 12:24 PM
 
720 posts, read 1,105,647 times
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QE doesn't hurt if you are the first one to change your dollars into Gold.

It's just the rest of us who get screwed
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Old 08-16-2010, 04:04 PM
 
2,592 posts, read 4,876,355 times
Reputation: 1947
Quote:
Originally Posted by jimhcom View Post
Quantitative easing hurts working people in order to protect asset values for banks and other financial institutions.
The common man is experiencing their paycheck purchasing less in terms of day to day expenses, while at the same time their prospects for future pay raises is dismal.
Working people are seeing increases in almost everything. Five year old used SUV's are priced at $15-20K, a dinner out for a family of four will run $75-100, insurance rates are up, utility bills are up, taxes are increasing, auto registrations are increasing, schools are now charging for bus service, and the list goes on.
The government is now planning another round of QE which will make all of this worse for everyone except banks. Banks will be the beneficiary’s of the QE. QE will make it possible for them to use free money supplied by government to speculate in equity and commodities markets, which is their primary source of income now as they have cut back radically on lending.
If you are hurting in this economy, it is time to tell your elected representatives that we do not want QE; we do not want increased government spending. What we do want is for government to stop manipulating the markets to benefit banks. What we do want is for government to balance its budget and stop spending the rest of us into the poor house.
Absolutely correct. It is such bs when they all act and think they are doing what is "best" for the american public.
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Old 08-16-2010, 04:18 PM
 
Location: Sinking in the Great Salt Lake
13,145 posts, read 20,443,800 times
Reputation: 14042
Quote:
Originally Posted by jimhcom View Post
Quantitative easing hurts working people in order to protect asset values for banks and other financial institutions.
The common man is experiencing their paycheck purchasing less in terms of day to day expenses, while at the same time their prospects for future pay raises is dismal.
Working people are seeing increases in almost everything. Five year old used SUV's are priced at $15-20K, a dinner out for a family of four will run $75-100, insurance rates are up, utility bills are up, taxes are increasing, auto registrations are increasing, schools are now charging for bus service, and the list goes on.
The government is now planning another round of QE which will make all of this worse for everyone except banks. Banks will be the beneficiary’s of the QE. QE will make it possible for them to use free money supplied by government to speculate in equity and commodities markets, which is their primary source of income now as they have cut back radically on lending.
If you are hurting in this economy, it is time to tell your elected representatives that we do not want QE; we do not want increased government spending. What we do want is for government to stop manipulating the markets to benefit banks. What we do want is for government to balance its budget and stop spending the rest of us into the poor house.
Bu..But... I thought the fed was supposed to be working for the benefit of the American people?
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Old 08-17-2010, 09:02 AM
 
22,769 posts, read 27,838,317 times
Reputation: 14617
QE hurts Americans who are still working.

QE, at least in theory, puts more Americans to work. It does this by debasing the currency, which boosts the viability of exports, and - so i hear - the added credit availability gives firms the option to borrow & hire if they choose.

I think the important question is: who does QE help the most?
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Old 08-17-2010, 11:28 AM
 
19,346 posts, read 17,008,632 times
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It helps to understand the nature of the problem.What's the problem? The problem is sub prime debt is no longer issued. Since all debt is spent into the economy, debt is money. With the disappearance of sub prime loans we effectively demonetized sub prime dept. What happens when part of the money supply is demonetized say like silver and green backs in the 1870s? You get depression, or disinflation at any rate.

Our system requires consistent debt creation for money growth. Thus da guberment is the last resort, or in reality the basis of money. Having a piece of paper that says to the agency capable of using enforcement, despite the growing chorus that it is otherwise, is actually worth a lot. They could take your gold too if it became law. Force is the final currency.

So essentially what needs to happen, and should have happened all along, was the creation of guberment debt by lowering taxes and then purchased by the FED. This would replace the sub prime money supply and put it in the hands of consumers.

Low interest rates are just a scam to help banks. Low interest rates are a BANK tax cut to allow them to create as much commercial credit as possible while the populace at large pays interest on their medium of exchange.

Unfortunately we have a financial praetorian guard that has usurped the republic.
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Old 08-17-2010, 01:48 PM
 
Location: San Diego California
6,797 posts, read 6,647,128 times
Reputation: 5180
Quote:
Originally Posted by le roi View Post
QE hurts Americans who are still working.

QE, at least in theory, puts more Americans to work. It does this by debasing the currency, which boosts the viability of exports, and - so i hear - the added credit availability gives firms the option to borrow & hire if they choose.

I think the important question is: who does QE help the most?
Puts Americans to work where? The manufacturing jobs that would be exporting have for the most part all been exported themselves. What QE has done is allowed banks to earn their money in speculation and overnight lending to the FED instead of making loans to the public and small business. This is a fact. Just look at the statistics on loans, despite the flood of money bestowed on banks by the government, bank lending is at its lowest level ever. Who is being helped most by QE? Silly question, bank bonuses and salaries way up, Wall St. likewise, number of Americans on food stamps 40 million +, the highest in history. Bankruptcy filings up, unemployment up, foreclosures up, cost of living up. If anyone thinks the way to help the people is to give banks money, I have some beautiful real estate to sell you.
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Old 08-17-2010, 02:03 PM
 
22,769 posts, read 27,838,317 times
Reputation: 14617
Quote:
Originally Posted by jimhcom View Post
Puts Americans to work where? The manufacturing jobs that would be exporting have for the most part all been exported themselves. What QE has done is allowed banks to earn their money in speculation and overnight lending to the FED instead of making loans to the public and small business. This is a fact. Just look at the statistics on loans, despite the flood of money bestowed on banks by the government, bank lending is at its lowest level ever. Who is being helped most by QE? Silly question, bank bonuses and salaries way up, Wall St. likewise, number of Americans on food stamps 40 million +, the highest in history. Bankruptcy filings up, unemployment up, foreclosures up, cost of living up. If anyone thinks the way to help the people is to give banks money, I have some beautiful real estate to sell you.

theory - hypothesis: a tentative insight into the natural world; a concept that is not yet verified but that if true would explain certain facts or phenomena;
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