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Posted: 4/19/2016 8:45:34 AM EDT
[#1]
The first rule of economics is if a five year old cannot understand it, it's bullshit.
Quantitative easing is money printing. If it were a fair system, they would mail a check to every citizen based on how many dollars that person already holds. What happens in practice is whomever gets the new money first wins. In Amerika, it's large companies. They are getting bigger not necessarily because of serving the needs of the consumer, but because of a rigged money-dispensing machine. |
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Posted: 4/19/2016 8:47:02 AM EDT
[#2]
Think of it as free money.
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Posted: 4/19/2016 8:54:18 AM EDT
[#3]
Filtering QE through banks and lenders hides the side effects better.
Slight jaded tangent: It also helps the people that runs those establishments send campaign contributions and buys lots of lobbyists.  |
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Posted: 4/19/2016 8:59:33 AM EDT
[#4]
First we must start with the US Dollar. The "Federal" Reserve is a private bank (as Federal as Federal Express) that prints money out of thin air and loans it into existence to the US Treasury.
The "Federal" Reserve prints money into existence and buys US Treasury bonds on the market from companies like Goldman Sachs. That's QE. Edit: it's like giving yourself a credit card when you're maxed out on all other credit cards. |
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Posted: 4/19/2016 9:05:45 AM EDT
[#5]
Thanks, for the info.
The QE article in my OP quotes some mighty big numbers---billions of dollars worth of bank debt, mortgage-backed securities, and Treasury notes being purchased every month. A few billion here, a few billion there . . . pretty soon it starts to add up. |
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Posted: 4/19/2016 9:35:45 AM EDT
[#6]
Quote HistoryQuoted:
Thanks, for the info. The QE article in my OP quotes some mighty big numbers---billions of dollars worth of bank debt, mortgage-backed securities, and Treasury notes being purchased every month. A few billion here, a few billion there . . . pretty soon it starts to add up. Wondering what it all means? The middle class gets squeezed because their wages do not keep up with the rising costs of living. It becomes harder and harder to get ahead of the curve. People in the middle class get pushed either into the upper class by way of starting a successful business and passing the costs off to the other consumers, or more education/becoming more valuable compared to everyone else in the employment marketplace; or into the permanent underclass of the FSA. Most people get pushed into the FSA because few claw their way into the upper class and this is the economic mechanism that gives us socialism and communism; unsound money. The unsound money doesn't lessen productivity as much as it transfers wealth. People work the same amount for less valuable money. It flows from the backs of the working class to the people closer to the new money. In the U.S., in 100 years the country has gone from being the most wealthy (creditor) nation to the least wealthy (debtor) nation of developed countries, people owning their homes and cars outright to everything being financed into eternity, and a higher standard of living vs. lower (both parents need to work for the same standard of living). It destroys everything. |
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Posted: 4/19/2016 9:47:57 AM EDT
[#7]
Inflate that currency.....it worked for Germany
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Posted: 4/19/2016 9:50:59 AM EDT
[#8]
Quantitative Easing is a term coined by the Fed Res to confuse the common man and to mask the monetization of the debt by inceasing the currency supply.
General rule of thumb is that you should have a corresponding increase of goods to match with the newly created currency. If not, then you have too much currency chasing too few goods and hence inflation Inflation destroys earnings, savings, retirement and is a hidden tax upon those who have or earn in that currency. Who benefits from inflation? Debtors and nations with big debt. By reducing the value of its currency, it is cheaper to repay the debt. BTW OP, do you know the difference between the dollar, currency and money? Go to http://www.hiddensecretsofmoney.com and watch those free videos. Trivia note: Most of the newly created currency isn't eve printed anymore. They're digital entries on the Fed's computers. They're not worth the paper it's not printed on. 
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Posted: 4/19/2016 9:54:06 AM EDT
[#9]
Quote HistoryQuoted: Think of it as free money. |
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Posted: 4/19/2016 9:55:12 AM EDT
[#10]
Quote HistoryQuoted: Wondering what it all means? The middle class gets squeezed because their wages do not keep up with the rising costs of living. It becomes harder and harder to get ahead of the curve. People in the middle class get pushed either into the upper class by way of starting a successful business and passing the costs off to the other consumers, or more education/becoming more valuable compared to everyone else in the employment marketplace; or into the permanent underclass of the FSA. Most people get pushed into the FSA because few claw their way into the upper class and this is the economic mechanism that gives us socialism and communism; unsound money. The unsound money doesn't lessen productivity as much as it transfers wealth. People work the same amount for less valuable money. It flows from the backs of the working class to the people closer to the new money. In the U.S., in 100 years the country has gone from being the most wealthy (creditor) nation to the least wealthy (debtor) nation of developed countries, people owning their homes and cars outright to everything being financed into eternity, and a higher standard of living vs. lower (both parents need to work for the same standard of living). It destroys everything. This is a great summary, thanks for posting. |
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Posted: 4/19/2016 9:57:35 AM EDT
[#11]
Quote HistoryQuoted:
The first rule of economics is if a five year old cannot understand it, it's bullshit. Quantitative easing is money printing. If it were a fair system, they would mail a check to every citizen based on how many dollars that person already holds. What happens in practice is whomever gets the new money first wins. In Amerika, it's large companies. They are getting bigger not necessarily because of serving the needs of the consumer, but because of a rigged money-dispensing machine. While I disagree with QE, NIRP, ZIRP, etc I have seen enough of your posts to know you have no idea how QE works. I have plenty posted if you search the archives on how QE works and why it is not like printing money and why it along with NIRP/ZIRP is deflationary and not inflationary. |
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Posted: 4/19/2016 9:58:26 AM EDT
[#12]
Quote HistoryQuoted:
First we must start with the US Dollar. The "Federal" Reserve is a private bank (as Federal as Federal Express) that prints money out of thin air and loans it into existence to the US Treasury. The "Federal" Reserve prints money into existence and buys US Treasury bonds on the market from companies like Goldman Sachs. That's QE. Edit: it's like giving yourself a credit card when you're maxed out on all other credit cards. Money is lent into existence |
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Posted: 4/19/2016 10:14:45 AM EDT
[#13]
Quote HistoryQuoted:
Money is lent into existence Quote HistoryQuoted:
Quoted:
First we must start with the US Dollar. The "Federal" Reserve is a private bank (as Federal as Federal Express) that prints money out of thin air and loans it into existence to the US Treasury. The "Federal" Reserve prints money into existence and buys US Treasury bonds on the market from companies like Goldman Sachs. That's QE. Edit: it's like giving yourself a credit card when you're maxed out on all other credit cards. Money is lent into existence Yes. The Treasury pays the Fed interest on every dollar created. |
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Posted: 4/19/2016 10:32:00 AM EDT
[#14]
Quote HistoryQuoted:
This is a great summary, thanks for posting. Quote HistoryQuoted:
Quoted:
snip This is a great summary, thanks for posting. Gladly. Now what the hell do we do about it? 
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Posted: 4/19/2016 10:44:21 AM EDT
[#15]
Quote HistoryQuoted:
While I disagree with QE, NIRP, ZIRP, etc I have seen enough of your posts to know you have no idea how QE works. I have plenty posted if you search the archives on how QE works and why it is not like printing money and why it along with NIRP/ZIRP is deflationary and not inflationary. Quote HistoryQuoted:
Quoted:
The first rule of economics is if a five year old cannot understand it, it's bullshit. Quantitative easing is money printing. If it were a fair system, they would mail a check to every citizen based on how many dollars that person already holds. What happens in practice is whomever gets the new money first wins. In Amerika, it's large companies. They are getting bigger not necessarily because of serving the needs of the consumer, but because of a rigged money-dispensing machine. While I disagree with QE, NIRP, ZIRP, etc I have seen enough of your posts to know you have no idea how QE works. I have plenty posted if you search the archives on how QE works and why it is not like printing money and why it along with NIRP/ZIRP is deflationary and not inflationary. Deflation talk is prevalent, I agree. |
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Posted: 4/19/2016 11:27:22 AM EDT
[#16]
Quote HistoryQuoted:
Gladly. Now what the hell do we do about it? Quote HistoryQuoted:
Quoted:
Quoted:
snip This is a great summary, thanks for posting. Gladly. Now what the hell do we do about it? Vote in politicians that will end the Fed. Libertarians and some Republicans are on board. Everyone else has no idea this shit even exists. I had a 4 hour conversation with my buddy who was home on leave a couple years ago about this. After explaining everything and all the negative and indirect consequences, he said I really don't care who's money we use, USA, Britain, as long as there is money 
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Posted: 4/19/2016 11:29:57 AM EDT
[#17]
lol
This thread will undoubtedly be filled with facts and reason and logic. |
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Posted: 4/20/2016 8:49:16 AM EDT
[#18]
Thanks folks for the information.
So we get QE to stop (or to prevent) deflation? I looked up the definition of deflation (below). Apparently it means, "A general dip in the cost of goods and services." I don't recall seeing the price of anything go down---except gasoline, and that has been very recent. ------------------------------------------ Deflation A deflationary cycle sees a general dip in the cost of goods and services. On the demand side, consumers reduce their expenditures as prices continue to decrease, opting to wait and make their purchases at a lower cost. This can prolong and worsen deflation. On the supply side, business owners and employers are less likely to make new hires or investments. Studies suggest deflation occurs when productivity increases are coupled with decreases in money-supply. Runaway deflationary cycles may lead to economic recession. Recession A recession is a broad downturn in economic activity, affecting every aspect of an economy's health. Household income, investments, new hires, commercial profits and employment all suffer in a recession. Deflation, generally believed to be a critical cause of recessions, is also an effect of them, as consumer spending drops and bankruptcies and foreclosures increase. An unchecked recession may lead ultimately to an economic depression. Depression An economic depression is a severe, protracted drop in economic activity. An economy in depression suffers a general reduction of total output. Spending, employment, investments, profits and income all decrease. Though the primary difference between a recession and a depression is one of duration, there is scant consensus among economists as to when one becomes the other. ----------------------------------- |
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Posted: 4/20/2016 8:53:39 AM EDT
[#19]
Didn't Bush mail out checks to everyone?
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Posted: 4/20/2016 9:06:14 AM EDT
[#20]
Quote HistoryQuoted:
Yes. The Treasury pays the Fed interest on every dollar created. Quote HistoryQuoted:
Quoted:
Quoted:
First we must start with the US Dollar. The "Federal" Reserve is a private bank (as Federal as Federal Express) that prints money out of thin air and loans it into existence to the US Treasury. The "Federal" Reserve prints money into existence and buys US Treasury bonds on the market from companies like Goldman Sachs. That's QE. Edit: it's like giving yourself a credit card when you're maxed out on all other credit cards. Money is lent into existence Yes. The Treasury pays the Fed interest on every dollar created. I was more thinking of fractional reserve banking, but your probably more mostest right |
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Posted: 4/20/2016 9:07:38 AM EDT
[#21]
Quote HistoryQuoted:
lol This thread will undoubtedly be filled with facts and reason and logic. Are you trying to tell me money supply isn't created by the treasury paying interest to the fed 
I see wooden shoe futures crashing next Monday (TM) by the way. |
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Posted: 4/20/2016 9:27:21 AM EDT
[#22]
Quote HistoryQuoted: Didn't Bush mail out checks to everyone? |
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Posted: 4/20/2016 9:37:16 AM EDT
[#23]
I don't want to understand it. Just raises my blood pressure.
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Posted: 4/20/2016 9:40:54 AM EDT
[#24]
The laws of economics are the like the laws of physics. They aren't just guidelines. When the central economic planners in washington try to manipulate the markets all they are really doing is creating temporary market instability with short term desirable impacts.
At the end of the day markets correct, restabilize, and establish a new equilibrium. And more often then not the long term effects are undesirable. Often the cure is worse than the disease. Such is the case with all this QE. |
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Posted: 4/20/2016 9:47:36 AM EDT
[#25]
Quote HistoryQuoted: The first rule of economics is if a five year old cannot understand it, it's bullshit. Quantitative easing is money printing. If it were a fair system, they would mail a check to every citizen based on how many dollars that person already holds. What happens in practice is whomever gets the new money first wins. In Amerika, it's large companies. They are getting bigger not necessarily because of serving the needs of the consumer, but because of a rigged money-dispensing machine.  |
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Posted: 4/20/2016 9:59:27 AM EDT
[#26]
Quote HistoryQuoted:
Nope. I didn't qualify. Quote HistoryQuoted:
Quoted:
Didn't Bush mail out checks to everyone? Neither did I.....but I recall them saying how everyone was getting one |
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Posted: 4/20/2016 10:00:41 AM EDT
[#27]
Quote HistoryQuoted:
Nope. I didn't qualify. Quote HistoryQuoted:
Quoted:
Didn't Bush mail out checks to everyone? Neither did I.....but I recall them saying how everyone was getting one I think Bush did two rounds of "stimuluS" checks I got nada |
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Posted: 4/20/2016 10:05:22 AM EDT
[#28]
QE = money printing in an obfuscated term not to piss off the voters
Federal Reserve system = Controlling who get newly printed money first which favors the very rich few, and keeps much of the printed money out of the economy to stave off hyperinflation. Helicopter money = Bypassing the federal reserve system and give newly printed money to the masses. Helicoptering money has been done in the past and still is being done today. That is the federal welfare system and Fannie Mae/Freddy Mac home loan programs. We have bubbles in both of those. The federal reserve system is equally flawed, however. That's it in a nutshell. |
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Posted: 4/20/2016 10:28:02 AM EDT
[#29]
Quote HistoryQuoted:
Thanks folks for the information. So we get QE to stop (or to prevent) deflation? I looked up the definition of deflation (below). Apparently it means, "A general dip in the cost of goods and services." I don't recall seeing the price of anything go down---except gasoline, and that has been very recent. ----------------------------------- We get QE because central bankers have an impossible job and always fall back on easy money printing when every other policy they make naturally self-destructs. Inflation and deflation are the same thing: Control of the money supply by a few people. In a sound monetary system, the money supply remains stable while we make technological advancements. This causes the standard of living to rise because the money buys more goods over time; opposite what we have today. Great-grandma used to be able to stuff cash in her mattress and buy more with it later. America would be unrecognizable today if we had a sound monetary system. The growth we had before 1913 (creation of the unsound system) paired with the exponential increases in technology would make main street look like a sci-fi movie. |
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Posted: 4/20/2016 11:14:59 AM EDT
[#30]
Quote HistoryQuoted:
We get QE because central bankers have an impossible job and always fall back on easy money printing when every other policy they make naturally self-destructs. Inflation and deflation are the same thing: Control of the money supply by a few people. In a sound monetary system, the money supply remains stable while we make technological advancements. This causes the standard of living to rise because the money buys more goods over time; opposite what we have today. Great-grandma used to be able to stuff cash in her mattress and buy more with it later. America would be unrecognizable today if we had a sound monetary system. The growth we had before 1913 (creation of the unsound system) paired with the exponential increases in technology would make main street look like a sci-fi movie. Quote HistoryQuoted:
Quoted:
Thanks folks for the information. So we get QE to stop (or to prevent) deflation? I looked up the definition of deflation (below). Apparently it means, "A general dip in the cost of goods and services." I don't recall seeing the price of anything go down---except gasoline, and that has been very recent. ----------------------------------- We get QE because central bankers have an impossible job and always fall back on easy money printing when every other policy they make naturally self-destructs. Inflation and deflation are the same thing: Control of the money supply by a few people. In a sound monetary system, the money supply remains stable while we make technological advancements. This causes the standard of living to rise because the money buys more goods over time; opposite what we have today. Great-grandma used to be able to stuff cash in her mattress and buy more with it later. America would be unrecognizable today if we had a sound monetary system. The growth we had before 1913 (creation of the unsound system) paired with the exponential increases in technology would make main street look like a sci-fi movie. What is your definition of the money supply remaining stable? |
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Posted: 4/20/2016 11:48:13 AM EDT
[#31]
 "citizen's dividend"
Dividends are supposed to be a way of distributing profits, or in this case, excess tax revenues. |
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Posted: 4/20/2016 11:59:37 AM EDT
[#32]
Quote HistoryQuoted:
What is your definition of the money supply remaining stable? The amount in circulation stays proportional to the population. |
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Posted: 4/20/2016 12:10:10 PM EDT
[#33]
I'm no economist either but I recommend the book The Creature From Jekyll Island.
Eta there is also a youtube video called the creature from jeckyl island. It's lengthy but we'll worth it if you don't wanna read a big book. |
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Posted: 4/20/2016 1:02:23 PM EDT
[#34]
A little QE never hurt anybody.
Well...It's different this time. We're going to do it better.
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Posted: 4/20/2016 1:42:11 PM EDT
[#35]
Quote HistoryQuoted:
Thanks folks for the information. So we get QE to stop (or to prevent) deflation? I looked up the definition of deflation (below). Apparently it means, "A general dip in the cost of goods and services." I don't recall seeing the price of anything go down---except gasoline, and that has been very recent. ------------------------------------------ Deflation A deflationary cycle sees a general dip in the cost of goods and services. On the demand side, consumers reduce their expenditures as prices continue to decrease, opting to wait and make their purchases at a lower cost. This can prolong and worsen deflation. On the supply side, business owners and employers are less likely to make new hires or investments. Studies suggest deflation occurs when productivity increases are coupled with decreases in money-supply. Runaway deflationary cycles may lead to economic recession. Recession A recession is a broad downturn in economic activity, affecting every aspect of an economy's health. Household income, investments, new hires, commercial profits and employment all suffer in a recession. Deflation, generally believed to be a critical cause of recessions, is also an effect of them, as consumer spending drops and bankruptcies and foreclosures increase. An unchecked recession may lead ultimately to an economic depression. Depression An economic depression is a severe, protracted drop in economic activity. An economy in depression suffers a general reduction of total output. Spending, employment, investments, profits and income all decrease. Though the primary difference between a recession and a depression is one of duration, there is scant consensus among economists as to when one becomes the other. ----------------------------------- http://www.bbc.com/news/business-32081871 Not the US, NOT YET. They have had negative interest rates. We are talking about it, so is Europe. |
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Posted: 4/22/2016 12:19:27 AM EDT
[#36]
Trader's Choice Gregory Mannarino asserts that QE hasn't ended (he's not the only one who says this): https://www.youtube.com/watch?v=IMjSLLpuRsI#t=367
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Posted: 4/22/2016 12:51:39 AM EDT
[#37]
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Posted: 4/22/2016 1:03:54 AM EDT
[#38]
QE is basically the only thing that has made the stock market recover despite 0bama's policies the past 7yrs, and, have been laundered into record DNC campaign donations or for record payment prices for speeches to Wall Street firms by the Hitlery Cunt.
But what happens when a GOP President takes over and puts the stop to it? |
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Posted: 4/22/2016 1:11:10 AM EDT
[#39]
Quote HistoryQuoted:
First we must start with the US Dollar. The "Federal" Reserve is a private bank (as Federal as Federal Express) that prints money out of thin air and loans it into existence to the US Treasury. The "Federal" Reserve prints money into existence and buys US Treasury bonds on the market from companies like Goldman Sachs. That's QE. Edit: it's like giving yourself a credit card when you're maxed out on all other credit cards. On a side note: the reason for 25 years of "free trade" trade deficits is to move all that funny money out of country so it doesn't bottle neck and cause hyperinflation. Our trade policy perpetuates our banking system. |
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Posted: 4/22/2016 1:13:33 AM EDT
[#40]
Quote HistoryQuoted: lol This thread will undoubtedly be filled with facts and reason and logic. |
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Posted: 4/22/2016 1:15:03 AM EDT
[#41]
Or you could just stop taxing the living shit out of everyone, that would free up capital for people to spend.
Oh but we can't because they can't even manage a simple budget, you know, a budget, like how most of us live. |
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Posted: 4/22/2016 1:25:07 AM EDT
[#42]
Quote HistoryQuoted:
Filtering QE through banks and lenders hides the side effects better. Slight jaded tangent: It also helps the people that runs those establishments send campaign contributions and buys lots of lobbyists.
But it only "helps" those both willing & able to borrow. Many now, post 2008 who are willing are not able to borrow and the smart who are able to borrow, are not willing. |
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Posted: 4/22/2016 4:09:16 AM EDT
[#43]
Quoted:
Japan is apparently in big trouble. There are people old enough to drive now that weren't even alive when Japan started "being in big trouble". At least they've had the sense not to import a ton of jihadis (they did bring in a few dozen, of which roughly 10% are now behind bars for rape. I know, shocking.)
Most nations are busy doing stupid shit right now, but it's easy to tell which ones are trying to look after their own national interests (effectively or not), and which ones are run by those trying to save their own hides. |
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Posted: 4/22/2016 9:08:39 AM EDT
[#44]
Quote HistoryQuoted:
There are people old enough to drive now that weren't even alive when Japan started "being in big trouble". At least they've had the sense not to import a ton of jihadis (they did bring in a few dozen, of which roughly 10% are now behind bars for rape. I know, shocking.)
Most nations are busy doing stupid shit right now, but it's easy to tell which ones are trying to look after their own national interests (effectively or not), and which ones are run by those trying to save their own hides. Quote HistoryQuoted:
Quoted:
Japan is apparently in big trouble. There are people old enough to drive now that weren't even alive when Japan started "being in big trouble". At least they've had the sense not to import a ton of jihadis (they did bring in a few dozen, of which roughly 10% are now behind bars for rape. I know, shocking.)
Most nations are busy doing stupid shit right now, but it's easy to tell which ones are trying to look after their own national interests (effectively or not), and which ones are run by those trying to save their own hides. Japan is an excellent example of what not to do and where we're going. QE has failed there and now they're entering NIRP territory. Safe sales are up as Japanese are hoarding cash at home now. I know they also pay a higher premium than we do for gold eagles. |
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Posted: 4/22/2016 9:15:37 AM EDT
[#45]
Think of QE as theft of value so that debt is smaller in relation. If you inflate money, debts don't inflate along with the money's inflation. Therefore the debt is effectively smaller in value.
Helicopter money is what Obama did with green energy here, and look what happened.....business went out of business and government is out all those dollars that could have been used to create something lasting, or have used to pay down debt. Both are reasons why government should stay the fuck out of financial markets and put of business decisions. Additionally, with QE as evinced in the U.S....wages did not rise in relation to the lost value created, as most people don't understand what happened.....and at that point, weren't in a position to quit their job to find one that paid better. So employees pocket the difference in value, pay the employee effectively less value, and walk away giggling. My check sure as shit didn't get 1/3 bigger even though my money is worth 1/3 less. |
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Posted: 4/23/2016 8:45:07 PM EDT
[#46]
Oh, the other effect of QE is the movement to dump the dollar. There's an alternative to SWIFT and the dollar's usage worldwide has declined 20%. Give it a few months and Saudi Arabia will announce that it will accept other currencies in lieu of the dollar. They are, after all, pissed off about 0's passing the mantle of importance to Iran by OK it's nuke program.
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