QE2 and recession policy

Discussion in 'Economy' started by doctor100, May 10, 2011.

  1. doctor100
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    doctor100 Rookie

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    So it seems to me that everyone here is against quantitative easing, or other policies that devalue the dollar.

    me, I don't yet have an opinion about it, and find the decision would be very difficult to make. Let me quote a couple thing about currency wars from wikipedia

    So first off it's a long term policy: not short term.

    "everybody here" seems to be against a trade deficit, but QE is one way to address that-one of the surest, if slowest.

    And of course "everyone" is against high unemployment rates . . .this is a long term solution for that.

    so this also increases foreign reserve, but also lowers interest rates on loans.

    Which has a nasty trade off. reduced spending power (value of the dollar) which translates into inflation/lower QOL. that's the big one.

    it also declines emotional "prestige" and further has a risk of (in America's case) bringing home all the dollars everyone is holding on to-both increasing the money supply domestically even more, and reducing our 'economic super power' status that makes it easy to do business with other countries.

    Is the trade off worth it? Why not? or Why? what would be a better policy?

    Obama has promised to raise out exports, Obama has promised to stabilize the economy, and to lower unemployment . . .and this policy has his paw prints all over it (i used to think it was Bernanke, but not since learning this wasn't just bank favoritism). With this policy he is doing that. Good or bad? if bad, what would be better?
     
  2. waltky
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    waltky Wise ol' monkey Supporting Member

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    Say what??...
    :confused:
    Obama on Recession: ‘Less Money Coming In,’ So We Had to ‘Spend Even More’
    Tuesday, July 26, 2011 – When speaking to the nation in a primetime television address on Monday, President Barack Obama said that because less money was “coming in” during the recession, the federal government had to “spend even more.”
    See also:

    Obama: ‘We Can’t Just Close Our Deficits By Cutting Spending’
    Monday, July 25, 2011 -- President Barrack Obama today said that the federal deficit and the national debt could not be reduced solely “by cutting spending.”
     
    Last edited: Jul 26, 2011
  3. iamwhatiseem
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    iamwhatiseem Gold Member

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    Government must get smaller.
    Any questions?
     
  4. KissMy
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    KissMy Free Breast Exam

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    We can't continue to print money to support the overpaid corrupt government employees.

    Printing money is socialism & since the government is doing it anyhow they should have to pay it equally to every citizen, not just their cronies. The government cronies are living large like kings while the rest of us suffer. We must fire them all & take their cushy pensions so they can get a taste of what they have done to the rest of us. Then hire the current unemployed to fill their positions.

    Printing money devalues the dollar & makes prices rise on everyone, but it will eventually help out exports & slow our imports.
     

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