24 1 min 8 yrs

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What can go wrong? Just make sure you are not standing too close….

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24 thoughts on “QE FOR DUMMIES,

  1. Without QE we would have been in severe recession in 2009 with awful global impact

    QE was the worst plan except for all the others

    There comes a time when you don’t go by the book

    2008 and 2009 was that time, and we’re not out of it yet

  2. There comes a time when you don’t go by the book

    That should include not paying bonuses for utter failure.

  3. There comes a time when you don’t go by the book

    If only.

    Keynesian economic distortion is straight out of the central state’s playbook. This is why economies are always on a rollercoaster, constantly booming and crashing again.

    Yet again inflationary bubbles are expanding everywhere, in property, energy, food and employment. As always, recession is assured and inevitable when the communist state central committees raise interest rates.

    The playbook was once ripped up, during the Greatest Depression of 1921 in the US. President Harding ignored the advice he was given, did nothing, and by 1922 the economy had righted itself.

    Herbert Hoover was the Secretary of Commerce at the time. He said that if he was the president in the same position he would massively intervene in the economy. He had his chance in 1928 and he was as good as his word, ensuring a recession became the Great Depression.

  4. Phantom, on July 12th, 2014 at 3:05 PM Said:

    There have been booms and busts through all history

    There’s only ever one loser though.

  5. There have been booms and busts through all history

    Yeah, and governments have always inflated the currency.

    When you pump new money into the economy, and encourage investment on the back of low interest rates, you’ll get overinvestments and malinvestements – i.e. those which would not have happened without the new money and low interest rates.

    The bust comes when interest rates rise on the back of the central state tightening money supply as a response to price inflation, which it initially fuelled. There ae no more loanable funds to keep the malinvestments going, and they cannot be repaid – there’s the recession.

    All that remains is for the propagandists to blame the free market.

  6. The problem is that the bubble economy demands ever-larger bubbles and consequently ever- larger busts. The UK property market will implode again by 2016 unless zero interest rates are maintained as permanent policy. Which may well happen.

  7. Surely if the Fed can create $2.2trillion and issue it to commercial banks with no traceability then it can create $2.2 trillion and allow the government to use it for infrastructure investment projects both interest- and tax-free?

    Peter – when one speaks of ‘zero-interest rates’ one means zero for the central bank to the commercial banks because, when I check mortgage rates for the general public, the rates are well above zero. Now here is why boom and bust is built into the system, and it’s deliberate:

    The central bank creates the money which is loaned to the commercial banks at base rate. Putting aside the magic of fractional reserve lending, what’s left of the newly created money after the bankers have pocketed their ‘bonuses’ is loaned into real economy at interest rates well above base rate. The new money enters the economy as debt – with interest (BOOM!!!). The debt has to be re-paid and interest ensures that more money must come out than was loaned in to create the boom – now we have BUST! The only way that the system permits to counter the bust is to create yet more money-as-debt and the debt loading of the economy increaes, as it has always done under the money-as-debt system which enriches the parasitic bankers.

  8. Peter – when one speaks of ‘zero-interest rates’ one means zero for the central bank to the commercial banks because, when I check mortgage rates for the general public, the rates are well above zero.

    Yes, but not above inflation. Historically, base rates have been 3%-5% above inflation, which implies base rates of 5%-8% in the past five years and mortgage rates of at least that level. Instead we have had base rates of 0.5% which is now starting to called what it is – financial repression. And it will continue indefinitely for the simple reason that a rise in rates would bankrupt the banks again, because of massive mortage defaults. That’s why the Bank of England stays committed to zero rates.

  9. Peter what about the false inflation data?

    The other shoe of QE is no inflation. Has Fuel, bread, meat and commercial goods stayed the same price they were 5 years ago?

    According to our governments there is no inflation, our wallets tell a different tale.

  10. The creation of money without commensurate creation of wealth is the inflation. The indices used to measure ‘inflation’ (a basket of prices) are cons.

  11. No its not.

    Prices of goods and services is the only inflation that any real people care about, and it is what economists generally use. Money supply is money supply and inflation is inflation. Anything else is pig latin for insiders.

    Inflation is generally very low by any standards in the US. Food and fuel are dirt cheap in America, esp as compared with here in Europe, where wages are lower.

  12. no money in the wallet, even though the economy is BOOMING and no one has money for the extras. Gambling, dining out, vacations etc.

    Now if you’re a loner with now family and no one but yourself to provide for you may not notice these things like some people. So therefore everything is just fine and robust….lol

  13. Trump businesses incl NJ gambling entities have gone bankrupt many times

    AC is a shabby resort that was not desirable and people don’t go much go there because gambling is now legal in PA and NY and on line gambling is legal in NJ

    You didn’t know this?

  14. You have no money because you have a minimum wage job as a cashier in a retail store after being fired as a baggage handler at the PHL airport

    If you had taken the time to learn a trade of any kind instead of mouthing Republican politics and feeling sorry for yourself you would be better off.

    There are loads of good jobs in the Philly metro area, in computers and other areas but you are not qualified for any of them. Don’t blame the black Democrat. For this fact

  15. look you can keep your obsession on finding fault in everything I write. It still won’t change the fact that you’re a lonely bitter man, nor will it make you right in any view you have.

    Now you can keep looking for my comments to follow up with your bile, I won’t play any more.

    This is the last comment of yours that I will respond to on any thread.

    do yourself a favor Ringo, let it go.

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