The federal reserve is going to pull another ONE TRILLION DOLLARS OUT OF THEIR ASS!

[Reasoning]

The federal reserve is going to pull another ONE TRILLION DOLLARS OUT OF THEIR ASS! Have fun with the inflation everyone! =)



I wonder how little your dollars are going to need to be worth before some of you choose to start paying attention to federal monetary policy...?

[ame]http://www.youtube.com/watch?v=GNqxGtzUW4I[/ame]

 

[Oddball]

Buy more gold and silver.

 

[Urkie]

This is why the Federal Reserve needs to be abolished. Just keep on printing money we don't have because all we need right now is for the price of stuff to go up.

It's basically increasing our taxes without actually doing it. The silent tax increase.

 

[Big Fitz]

Buy more gold and silver.

and those of us living paycheck to paycheck are fooked. Looking forward to the +20% inflation... NOT

 

[Spoonman]

You spelled out of our pockets and out of the pockets of our future generations wrong.

 

[LiberalNut]

It's simply nonsense in this economic environment to be worried about inflation. Such ranting does nothing but show your complete ignorance on how the economy actually works.

But, that said, I don't expect QE2 to work any better than QE1 did. The balance sheets of banks aren't the problem. It's the distribution of wealth that is the core problem and until that is addressed, happy unemployment.

 

[Urkie]

It's simply nonsense in this economic environment to be worried about inflation. Such ranting does nothing but show your complete ignorance on how the economy actually works.

But, that said, I don't expect QE2 to work any better than QE1 did. The balance sheets of banks aren't the problem. It's the distribution of wealth that is the core problem and until that is addressed, happy unemployment.

I would agree with you if we weren't already 13 trillion in the hole. That's when inflation becomes a major problem. The debt will eventually catch up to us in the way of higher interest rates and countries then not lending us money.

It becomes easier for us to export if that happens but what do we make in this country?

 

[Spoonman]

It's simply nonsense in this economic environment to be worried about inflation. Such ranting does nothing but show your complete ignorance on how the economy actually works.

But, that said, I don't expect QE2 to work any better than QE1 did. The balance sheets of banks aren't the problem. It's the distribution of wealth that is the core problem and until that is addressed, happy unemployment.

I would agree with you if we weren't already 13 trillion in the hole. That's when inflation becomes a major problem. The debt will eventually catch up to us in the way of higher interest rates and countries then not lending us money.

It becomes easier for us to export if that happens but what do we make in this country?

Good porn.

 

[LiberalNut]

I would agree with you if we weren't already 13 trillion in the hole. That's when inflation becomes a major problem.

No dude. The exact opposite is true. If we actually got inflation from this, which we won't, inflation would actually reduce the debt in real terms. Sure, you'd have to offer future debt at a higher rate but in the short term, that doesn't really effect anything.

It becomes easier for us to export if that happens but what do we make in this country?

Don't forget that the flip side is also true. Exports get cheaper and imports get more expensive. We still make things here but one theory would be that by devaluing the dollar, you might spur domestic investment in more productive capacity. I would argue that this isn't the right way to do that but hey, who listens to me anyway?

What the fed is actually trying to do is get banks to lend. But the banks are perfectly willing to lend right now if you have the requisite credit rating. The problem is that the growth of the Bush years was based on debt, not just federal but private. Indeed, private debt absolutely dwarfs public debt. Until the consumer either pays down enough debt to rate having more lent to them, QE2 changes nothing. That's the path to depression BTW.

The answer is not to improve the balance sheet of banks but rather to improve the balance sheets of consumers. the way to do that is to redistribute wealth.

 

[Mr.Fitnah]

Hey why shouldnt out money policies be run by private bankers instead of elected officials?

 

[Spoonman]

Buy more gold and silver.

and those of us living paycheck to paycheck are fooked. Looking forward to the +20% inflation... NOT

Jimmy Carter is coming back?

 

[Mr.Fitnah]

The answer is not to improve the balance sheet of banks but rather to improve the balance sheets of consumers. the way to do that is to redistribute wealth.

Thanks ,a fine example of what happens when you are stupid and dont know things.

 

[LiberalNut]

Care to offer something that I'm wrong about Fitnah? Care to actually debate with facts?

I didn't think so.

 

[LiberalNut]

Hey why shouldnt out money policies be run by private bankers instead of elected officials?

Cause that would lead to massive failure of the monetary system.

 

[Urkie]

No dude. The exact opposite is true. If we actually got inflation from this, which we won't, inflation would actually reduce the debt in real terms. Sure, you'd have to offer future debt at a higher rate but in the short term, that doesn't really effect anything.

I don't see how inflation reduces the debt? Wouldn't it actually make the debt bigger proportionally? We'd have to pay more to the Chinese for example, to pay off the debt.

This may not be related to your point about the QE2 but it is related to the debt and borrowing. What happens when China stops lending us money? That's when the real depression will set in because the Fed will be forced into monetizing the debt.

Don't forget that the flip side is also true. Exports get cheaper and imports get more expensive. We still make things here but one theory would be that by devaluing the dollar, you might spur domestic investment in more productive capacity. I would argue that this isn't the right way to do that but hey, who listens to me anyway?

What the fed is actually trying to do is get banks to lend. But the banks are perfectly willing to lend right now if you have the requisite credit rating. The problem is that the growth of the Bush years was based on debt, not just federal but private. Indeed, private debt absolutely dwarfs public debt. Until the consumer either pays down enough debt to rate having more lent to them, QE2 changes nothing. That's the path to depression BTW.

The answer is not to improve the balance sheet of banks but rather to improve the balance sheets of consumers. the way to do that is to redistribute wealth.

I agree on this point though. Giving money to the banks isn't going to solve the problem. The bailout should have been focused on putting money into the pockets of you and me. That would have made this whole thing a lot less painful. It would spur instant economic growth, people could get back to work and additional money would never need to be spent. The government has to have these banks and corporations in their back pocket though...

 

[manu1959]

you all should read this....i am not sure you under stand the system

Federal Reserve System - Wikipedia, the free encyclopedia

 

[Saikron]

I would agree with you if we weren't already 13 trillion in the hole. That's when inflation becomes a major problem. The debt will eventually catch up to us in the way of higher interest rates and countries then not lending us money.

It becomes easier for us to export if that happens but what do we make in this country?

13 trillion in debt by itself is a meaningless number. The national debt rose to about 90% of GDP in order to allow the government to stimulate the economy out of the great depression. I believe that is about 35% higher than it is now.

In order to create jobs and stimulate the economy the fastest, you increase government spending and cut taxes on consumers.

 

[Spoonman]

you all should read this....i am not sure you under stand the system

Federal Reserve System - Wikipedia, the free encyclopedia

So Old Hickory was right all along?

 

[Mr.Fitnah]

Care to offer something that I'm wrong about Fitnah? Care to actually debate with facts?

I didn't think so.

The answer is not to improve the balance sheet of banks but rather to improve the balance sheets of consumers. the way to do that is to redistribute wealth.

Stands on its own, thanks
You want "equality", but not when it comes to paying taxes .
You want to redistribute wealth? Stop handing it out and have people go earn some .
The Poor in the USA are fat and drive nice cars and buy candy and bluerays .
Cut everybody off and see how the economy grows.

 

[Big Fitz]

Buy more gold and silver.

and those of us living paycheck to paycheck are fooked. Looking forward to the +20% inflation... NOT

Jimmy Carter is coming back?

QE2 has just sailed. Inflation cannot be far behind. Carter inflated the money supply only by 13% and we got 20-25% inflation. Obama's admin has inflated it 130%. What do you think is going to happen? I'm being optimistic.