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Scary sounding Solution. It might be worth the risk, but it's sounds like something that kids in elementary school would dream up.
What is scary about it and since when are elementary school children dreaming of monetary policy?
QE2 is pretty much "out of the book" given the current economic conditions, the only reason its getting so much addition is because it benefits the US at the possible expense of other nations (they'd much prefer to benefit themselves at our expense) and for political reasons. You'll find the biggest critics are 1.) conservatives, 2.) foreign entities. Its actually a bit odd that the first group is so against it as conservatives are usually okay with monetarism.
Its actually a bit odd that the first group is so against it as conservatives are usually okay with monetarism.
What's a bit odd to me, is your statement. Are you talking about fiscal conservatives? Or are you using the term "conservative" interchangeably with the term "republican/GOP"?
A fiscal conservative, by definition, is not "OK with monetarism".
In the last decade, the GOP has only represented social conservatives, not fiscal conservatives. They will use the fiscal conservative mantra when it suits them politically, but in the end, they are working for the corporations, just like the democrats.
Again, they know that siding with the fiscal conservatives will win them votes, but they dont believe in fiscal conservatism anymore than a fiscal conservative give's a rats a$$ if you want to do bong hits all day with your gay lover. (Not you, necessarily. Just an example.)
What's a bit odd to me, is your statement. Are you talking about fiscal conservatives? Or are you using the term "conservative" interchangeably with the term "republican/GOP"?
I'm primarily talking about the GOP, which claim to be fiscal conservatives. But in terms of pure philosophy, there isn't anything about fiscal conservativism that is anti-QE or monetarism in general.
Quote:
Originally Posted by AnesthesiaMD
A fiscal conservative, by definition, is not "OK with monetarism".
Why is that? So people like Milton Friedman were fake conservatives, despite being highly influential in the conservative movement?
Anyhow, in terms of the out-cry against QE, its primary by people that are political in nature rather than apolitical conservatives.
The whole thing is based on borrowing money. Americans are up to their eyeballs in debt, and the solution is to buy bonds from banks so they can loan money. And if this round doesn't work, will user_id still say only conservatives oppose it? The opposition has absolutely nothing to do with the fact that it doesn't work, regardless of who dreamt it up?
The whole thing is based on borrowing money. Americans are up to their eyeballs in debt, and the solution is to buy bonds from banks so they can loan money.
"Borrowing money" plays a very important role in the economy, not so much from consumers, but rather businesses. I'm not sure why people always focus on individuals, but the goal isn't to get already leveraged households to take on more debt. Although, the lower interest rates do make it possible for these households to refinance their debt at lower rates which makes it less burdensome.
Quote:
Originally Posted by Luke9686
And if this round doesn't work, will user_id still say only conservatives oppose it? The opposition has absolutely nothing to do with the fact that it doesn't work, regardless of who dreamt it up?
I never stated that "only conservatives oppose" it, rather I said that most of the opposite is from conservatives (including those by name only) and foreign entities. The "debate" has been highly politicized, its sort of funny that people that know nothing about economics now have such strong opinions on fairly arcane monetary policy.
"Borrowing money" plays a very important role in the economy, not so much from consumers, but rather businesses. I'm not sure why people always focus on individuals, but the goal isn't to get already leveraged households to take on more debt. Although, the lower interest rates do make it possible for these households to refinance their debt at lower rates which makes it less burdensome.
I never stated that "only conservatives oppose" it, rather I said that most of the opposite is from conservatives (including those by name only) and foreign entities. The "debate" has been highly politicized, its sort of funny that people that know nothing about economics now have such strong opinions on fairly arcane monetary policy.
So, why didn't it work the first time?
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