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What should we do about QE economic stimulus (money creation)?
We are currently creating $85,000,000,000.00 in new money a month every month. That is nearly $2,000,000.00 a minute - every minute 24 hours a day.
We have created more and more money each of the past 4 years.
It has helped prop up the stock market, which is over valued about 25 to 30% above its P/E ratio (price of stock/earnings of the company per share).
It has helped prop up housing sales as it makes mortgage interest rates low, which makes homes more affordable.
It has helped make the national debt more serviceable, as the interest on the debt is artificially lower.
It can also cause inflation and major economic problems.
End the QE money creation it will cause long term problems and inflation. It obviously can't continue forever, so we might as well take our medicine and deal with stopping it. You can't print your way out of serious problems and doing so is a dangerous mindset.
Start slowly tapering we need to stop the nonsense of record printing the past 4 years, but a sudden cut off of massive amounts of new money could shock the economy negatively. We could wind up in a severe recession if we continue down this path or quickly cut it off.
Keep the QE coming baby! QE money creation has clearly helped the economy and stopping so would cause a negative effect to an economy that clearly needs it. Republicans just want to see the economy drop under Obama, which is the sole reason why they want to see this QE economic stimulus money creation end. We can come back to this question in 3 years or so.
The Fed has made clear that you're looking at it backwards. The QE is the medicine. Responsible governance means treating the illness, in this case stagnant growth and especially underemployment. That's what we should do: Create growth and lots of living wage jobs - problem solved.
The Fed has made clear that you're looking at it backwards. The QE is the medicine. Responsible governance means treating the illness, in this case stagnant growth and especially underemployment. That's what we should do: Create growth and lots of living wage jobs - problem solved.
So you are voting to print our way out of the weak economy - although you feel that Obama is not being honest about a recovering economy - as we have thus increased QE the past 4 years?
With the current fragile recovery from the Great Bush/GOP Recession, it would be the height of stupidity to take any action that might jeopardize economic progress.
The Fed has made clear that you're looking at it backwards. The QE is the medicine. Responsible governance means treating the illness, in this case stagnant growth and especially underemployment. That's what we should do: Create growth and lots of living wage jobs - problem solved.
So you are voting to ...
You obviously didn't read the message you replied to.
You do that a lot - do you realize that? Do you actually think you're adding value, with your remarkably deficient efforts to restate my comments? The fact that you've gotten it wrong every time you've tried should be an indicator to you that you need to stop trying. You're simply going to get called-out on your failure in that regard every time it happens.
Go back - read my message again - and then post a reply to what I wrote (i.e., that the Fed says that you're looking at the situation backwards), rather than posting yet-another ridiculously inane reply to something I didn't write.
You obviously didn't read the message you replied to.
You do that a lot - do you realize that?
Go back - read my message again - and then post a reply to what I wrote (i.e., that the Fed says that you're looking at the situation backwards), rather than posting yet-another reply to something I didn't write.
You hide and refuse to answer questions. I put a question mark there - because I couldn't decipher your opinion and that was a guess as to what you believe about the topic at hand.
What do you think we should do about QE? Be brave young man and address the topic you replied to!!!
Eventually, it need to be halted, but before we do that, we need to force businesses and banks to start spending again. Businesses need to engage in more hiring and in more capital purchases; banks need to engage in more lending rather than sitting on piles of capital and playing teeny-tiny interest games with each other.
This could be accomplished by imposing negative interest rates on large capital pools. If a business or bank wants to hold large amounts of capital and not put it to work, then that business or bank is impeding economic recovery and should have to pay for it. Negative interest rates can and would encourage increased economic activity and velocity.
You aren't the grand inquisitor. You get to present your perspective, including the questions rife with your partisan bias, which even the Fed says is looking at the issue the wrong way. That is all part of your perspective. You don't get to impose your perspective on others by trying to hide your bias in "questions" that you ask, insisting that others implicitly ratify your nonsense by responding to the questions lousy with your bias.
Do you think the people you're conversing with here are idiots? I have to wonder why you actually would presume that the people who disagree with you would be so stupid as to implicitly ratify your personal opinion, which they disagree with. If you really think we're that stupid, you really need to work on showing more little respect for the people you're conversing with, or be prepared to have your scurrilous rhetorical games called-out repeatedly.
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