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Old 07-27-2012, 11:38 AM
 
Location: San Diego California
6,797 posts, read 6,651,890 times
Reputation: 5180

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Central Banks Chomping At the Bit: Perpetual

In the oxymoronic world of government logic if something does not work, then we obviously need to continue, and even increase the practice until it becomes completely unsustainable.
With the economy faltering and having obtained no permanent benefit from QEI and QEII we now have financial gurus who brought the economy to its knees to begin with, publicly stating the need for more and possibly perpetual QE.
Life is truly stranger than fiction, and a decade ago you could not have even made this stuff up, it would have seemed just too bizarre.
The simple fact that QE has not worked is somehow lost on people who will stand on soap boxes and exclaim how much worse things would have been without it.
They seem oblivious to the harm being done by compounding the problem with continual QE on top of runaway deficit government spending.
Of course this course of action is not detrimental to everyone. If you are employed on Wall St., a banker, or a stock / commodity speculator, this course will mean easy money to line your deep pockets.
If you are a working class stiff, it will mean harder times ahead.
The rich get richer and the workers get the shaft.
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Old 07-27-2012, 01:23 PM
 
Location: East Side Milwaukee
711 posts, read 1,532,360 times
Reputation: 452
Where is all the 'inflation' that some have predicted QE would cause?

Now, let's take your line of thinking to tax cuts. Clinton raised taxes, paid down part of the deficit & the economy was steadily improving. Later, tax cuts were pushed & we have the opposite. So, why should we keep cutting taxes?


At the end of the day this seems like little more than simplistic trolling. It doesn't seem like you're interested in facts, just a political cage match. Have fun!
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Old 07-27-2012, 01:49 PM
 
Location: North Carolina
795 posts, read 1,296,310 times
Reputation: 228
Quote:
Originally Posted by Jesse276 View Post
Where is all the 'inflation' that some have predicted QE would cause?

Now, let's take your line of thinking to tax cuts. Clinton raised taxes, paid down part of the deficit & the economy was steadily improving. Later, tax cuts were pushed & we have the opposite. So, why should we keep cutting taxes?


At the end of the day this seems like little more than simplistic trolling. It doesn't seem like you're interested in facts, just a political cage match. Have fun!

Inflation is the point of QE. They are attempting the prevent deflation. If QE didn't cause inflation then we would be dealing with deflation. All the inflation QE has created is in front of you.
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Old 07-27-2012, 04:51 PM
Status: "Retired and happy about it" (set 6 days ago)
 
Location: WA
5,541 posts, read 22,672,841 times
Reputation: 6298
Quote:
Originally Posted by Jesse276 View Post
Where is all the 'inflation' that some have predicted QE would cause?
Right in front of you...

Chapwood Index - The Real Cost of Living Increase Index | Founded by Ed Butowsky of Chapwood Investments
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Old 07-27-2012, 05:06 PM
 
19,346 posts, read 17,025,783 times
Reputation: 7519
Quote:
Originally Posted by Majordomo View Post
Inflation is the point of QE. They are attempting the prevent deflation. If QE didn't cause inflation then we would be dealing with deflation. All the inflation QE has created is in front of you.

The only problem is you need assets to secure those loans. Many people with a desire to consume have negative equity let alone owning nothing. So all the money flows out of the US in dollar carry trade which causes inflation for basic commodities around the world rather than creating employment.

Another line of coke on a model's back
for the scum at Goldman Sachs.
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Old 07-27-2012, 05:11 PM
 
19,346 posts, read 17,025,783 times
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The key term is "wage inflation". Monetary stimulus bloats asset prices like the gound underneath the wheat that grows your bread. That is why that is going up.

That is also why only the first QE worked because it did add liquidity given that even rich people didn't have any money for a spell. Even they had their credit lines cut. After the first QE, anyone with an asset had liquidity. So now, its pointless.
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Old 07-27-2012, 06:25 PM
 
Location: North Carolina
795 posts, read 1,296,310 times
Reputation: 228
Quote:
Originally Posted by gwynedd1 View Post
The key term is "wage inflation". Monetary stimulus bloats asset prices like the gound underneath the wheat that grows your bread. That is why that is going up.

That is also why only the first QE worked because it did add liquidity given that even rich people didn't have any money for a spell. Even they had their credit lines cut. After the first QE, anyone with an asset had liquidity. So now, its pointless.

I don't know if it is really pointless. QE has encouraged me to save less and invest more. My real return on savings is negative and I'm not the only person fighting negative returns. QE pushed many of us into investing more in our stock market. Judging by the last two rounds of QE, we can expect another drop in the market followed by another huge bull run from around November up until the end of April. QE may not be doing much for the economy or the little guy but it really helps my portfolio. I hope to see QE4 November 2013.
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Old 07-27-2012, 08:25 PM
 
Location: Here.
15,452 posts, read 14,111,319 times
Reputation: 18089
The more the government interferes with the economy, the less the economy is able to work on its own. Socialists can't stand the thought that the economy goes in cycles, so they artificially try to sustain it, which only postpones the recovery.
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Old 07-27-2012, 11:23 PM
 
48,508 posts, read 88,816,493 times
Reputation: 18192
Quote:
Originally Posted by Jesse276 View Post
Where is all the 'inflation' that some have predicted QE would cause?

Now, let's take your line of thinking to tax cuts. Clinton raised taxes, paid down part of the deficit & the economy was steadily improving. Later, tax cuts were pushed & we have the opposite. So, why should we keep cutting taxes?


At the end of the day this seems like little more than simplistic trolling. It doesn't seem like you're interested in facts, just a political cage match. Have fun!
Clinton basically cut spending by what he called the peaqce dividend. Don't take my word for it look at CBO comments o usig defense budget to balance the budget.Its heal steady at 4% level. Even then when reagn leaft office GDP was growig by 8% out of the recession. The grow dod much more than the cuts qactaully but even then the budget was never elimnated except on the books.it started growig right away.One only has to look a6t Ireland how and german i the 90's to see that cuts work and actauly allow growth which exccerates growth. That is because when the government you get ral growth not governamntent spending that comes and goes and isn;'t effecent. If that were true then greece would be fine. Actually Greece has basicallt destroyed their private secotr by taxes and governamnt grwoth. Governamnt i the end consumes too muchif allow;is inefficent;promoter fraud.Governamnt is there to furnish limted esential services;not become a system that continues to grow to over the GDP which its has always doen unless controlled. Polktics is perhaps the worse case of inefficent meathod of providing service.
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Old 07-29-2012, 08:56 PM
 
12,803 posts, read 16,543,303 times
Reputation: 8829
We need to find something that DOES work. Removing regulations on business did not. "Stimulus" mostly spent on such things as food stamps, did not. Of course the present Congress, the moral equivalent of a dead horse, couldn't agree on endorsing National Boy Scout Week, much less serious issues.
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