The Greatest Economy of all Time Needs... QE4...

[Toddsterpatriot]

Question for you as you seem to have some clue about economics and finance.

1) Please explain to others the difference between QE and the repo market intervention.
2) Is QE defined by where our interest rates are or by the act of purchasing government bonds and assets with newly created money, and if we purchase gov bonds with newly created money and have interest rates at 1.5% is that still QE?
3) Please explain the difference between open market operations and QE, as QE is a form of open market operations
4) are we doing QE again?

I am just asking to help clear up the confusion because some people on here that have no clue about any of those things

Of course it's a bailout. I actually explained what's going on now rather thoroughly in another thread around here some place recently. To the best of my ability anyway. I'll have to try to look for it. I get kind of tired of repeating myself on here because I feel like it's just a waste of time. Most public debate is usually just a bunch of partisan mumbo jumbo, unfortunately.

Of course it's a bailout.

What action is a bailout? Perhaps you could share your definition of bailout while you're at it?

 

[Toddsterpatriot]

99% of Americans couldn’t explain what QE is, let alone how it has inflated asset prices and screwed the lower and middle class savers.

There was an article from the St. Louis Fed this week saying they're gonna let inflation run hotter. Which is already happening anyway. So I thought that was kind of humorous. They know what's coming. So it makes perfect sense for them to kind of front like it's smething they have control over. They control the printing press but certainly not the future. The market will naturally decide the future. Not the Fed. Not the government. Sadly, the electorate, for the most part, does not know what's coming. The electorate is buying into the market distortion that the media and politicians are pawning off as a good economy when what we really have is precisely the opposite. And that's unfortunate. The middle class is still shrinking. People are still under paid. People are still on the streets. And the dollar has lost 96% of its value, Americans have very, very little purchasing power.

they're gonna let inflation run hotter. Which is already happening anyway.

How hot was it before? How much hotter is it now? Link?

And the dollar has lost 96% of its value,

Gold lost over 40% of its value between 2011 and 2015.

 

[The Banker]

Question for you as you seem to have some clue about economics and finance.

1) Please explain to others the difference between QE and the repo market intervention.
2) Is QE defined by where our interest rates are or by the act of purchasing government bonds and assets with newly created money, and if we purchase gov bonds with newly created money and have interest rates at 1.5% is that still QE?
3) Please explain the difference between open market operations and QE, as QE is a form of open market operations
4) are we doing QE again?

I am just asking to help clear up the confusion because some people on here that have no clue about any of those things

Of course it's a bailout. I actually explained what's going on now rather thoroughly in another thread around here some place recently. To the best of my ability anyway. I'll have to try to look for it. I get kind of tired of repeating myself on here because I feel like it's just a waste of time. Most public debate is usually just a bunch of partisan mumbo jumbo, unfortunately.

Yeah pretty much. I think this says it all from the WSJ:
In early October, the Fed also said it would start expanding its balance sheet again via around $60 billion a month in Treasury bill purchases into Q2 of next year, hoping the addition of permanent liquidity would allow it to back away from large temporary interventions.

That is the essence of QE, it may be QE lite, and is nowhere as large as Q1-3, but it is still a large and predetermined plan of action, which differentiates it from normal open market operations. Standard OMOs didn't work so they had to do QE. Really Trump supporters don't want to admit to QE because it makes Trump look bad and they complained about QE for years.

 

[The Banker]

The Fed buys cash with cash.....just stop. Idiot.

Where did I say they buy cash w cash, in the Repo market, they lend cash and get paid back with cash, QE is when they buy treasury bonds with cash, You said they are "buying the bonds back" when that is 100% false and shows your stupidity and lack of understanding of all this. Again you have no clue the difference between the repo market and QE.


QE is when they can't cut rates any further.....and have to buy assets.

Completely false. QE is when they buy bonds or assets, exactly what they are doing now, which you don't seem to understand. If interest rates are at 1.5% and they buy assets/bonds then it is QE.

So again are we doing QE or not? Because you have repeatedly said we are not, when we are.

Village Idiot, you have made maybe 10 completely wrong and false statements in this thread. And now you are trying to somehow backtrack away from all your wrong statements.

Where did I say they buy cash w cash, in the Repo market, they lend cash and get paid back with cash,

Of course repurchase agreements lend cash and get repaid in cash. Just what is it you think is being purchased and sold in a REPURCHASE agreement? Bonds. Usually, but not always, Treasury bonds, notes or bills.

QE is when they buy bonds or assets,

Nope.

View attachment 293532

Federal Reserve Board - Open market operations

Did you get fired from your "banker" job for incompetence? Or was it fraud?

Freakin village idiot, here you go again with more misstatements.

You said this:

They sell the bonds back.

No they don't The Fed is buying treasuries and keeping them on their balance sheet, hence the balance sheet expansion and increase in the money supply, which falls under QE, so i guess you just confirmed that you don't know the difference between a Repo and QE.

Then you tried to say that it wasn't QE because we don't have zero interest rates???
You stupidly said this:
QE is when they can't cut rates any further.....and have to buy assets.

What does that even mean that QE is defined by where our interest rates are???? Stupidity and completely false. You have no clue what you are talking about and this stupid and false statement proves it.

Now you are trying to say they are just doing open market operations??? Now you have just dug yourself into a bigger hole. SOoooooo explain to us the difference between an OMO and QE, in which you will then realize that we are doing QE, because QE is an OMO, and is exactly what we are doing right now. AHAHAHAH!!! So let's here it Village idiot...

Yep, he’s in over his head.
, but 99% of Americans couldn’t explain what QE is, let alone how it has inflated asset prices and screwed the lower and middle class savers.

Yeah pretty much.

Pussy.

SO all this just because you can't admit they are doing QE, because you are just a partisan hack and your undying cultist love of Trump prevents you from admitting we are doing QE4 because that makes Trump look a little bad. Sad. Everybody has said it's QE but a handful of Trump cultist all because they can't admit that their fuhrer needs some QE.

Here's a tip stay out of the markets, they aren't for you, you will lose all your money because you will invest/trade based on politics. You must have lost all your money in 08/09 and then you probably didn't buy in at the bottom again in 09 because of political bias. Typical right wing stupidity.

First the WSJ article says it all:

In early October, the Fed also said it would start expanding its balance sheet again via around $60 billion a month in Treasury bill purchases into Q2 of next year, hoping the addition of permanent liquidity would allow it to back away from large temporary interventions.

That is QE. QE is a form of open market operations, a larger and more aggressive AND DEFINED form. Standard OMO occurs constantly and is used to tweak the yield curve to the desired ranges, and increase liquidity, but was not enough to calm the overnight market so they had to upgrade to QE or QE light (because it is not nearly as big as QE 1-3). When the Fed defines a clear and set amount of larger asset purchases that falls under QE. When the Fed says they are going to purchase $60B month for 6-9 months that is QE, where as standard OMO is smaller and not a defined program/plan.

If you ever want to be considered intelligent then you have to... act that way. Denying that we are doing QE (for political reasons), and trying to pass it off as simple OMO or Repos shows you have no clue what QE is, What Repos are, and what standard OMOs are, and it makes you look stupid. Your stupidity is on display. Next time you want to debate me you better come correct with your facts, I knew you had a lack of understanding of finance and economics when you tried to explain the Great recession, in which you also had no clue WTF you were talking about.

 

[Natural Citizen]

Yeah pretty much. I think this says it all from the WSJ:
In early October, the Fed also said it would start expanding its balance sheet again via around $60 billion a month in Treasury bill purchases into Q2 of next year, hoping the addition of permanent liquidity would allow it to back away from large temporary interventions.

That is the essence of QE, it may be QE lite, and is nowhere as large as Q1-3, but it is still a large and predetermined plan of action, which differentiates it from normal open market operations. Standard OMOs didn't work so they had to do QE. Really Trump supporters don't want to admit to QE because it makes Trump look bad and they complained about QE for years.

It's QE on steroids.

 

[Jitss617]

The economy is booming!!! As the Trumpers like to say, even though the economic data is practically the same as Obama's and the deficit has exploded again, almost doubling Obama's 2016 annual deficit of $587 to over $1 Trillion, with deficits projected to be way over $1 T next yr and beyond.

But that massive increase in deficit spending is not enough to prop up our fiat economy we also need another round of QE!!!

We all heard the Trumpers whine and cry about QE under Obama, but I'm sure 99% of them won't cry now...

Now why would the greatest economy of all time need quantitative easing, on top of all the increase in deficit spending?

The FED was supposed to be reducing its balance sheet instead it is greatly expanding it to the tune of hundreds of Billions. They also expect QE4 to last at least until Q2 of next year.

If you took away Trump's massive deficit spending and this latest QE 4 we would be in recession.

You do realize we will have to pay for this some day right??

Now we see why trump had to declare bankruptcy so many times...

But hey we've got a "booming economy" don't we!!!! AHAHAHAHAHAH!!!!!!

Fed Pumps $70.1 Billion in One-Day Liquidity Into Financial Markets
https://seekingalpha.com/article/4295640-hello-qe4-and-damage-brings

Triggered!? 3% growth

 

[The Banker]

99% of Americans couldn’t explain what QE is, let alone how it has inflated asset prices and screwed the lower and middle class savers.

There was an article from the St. Louis Fed this week saying they're gonna let inflation run hotter. Which is already happening anyway. So I thought that was kind of humorous. They know what's coming. So it makes perfect sense for them to kind of front like it's smething they have control over. They control the printing press but certainly not the future. The market will naturally decide the future. Not the Fed. Not the government. Sadly, the electorate, for the most part, does not know what's coming. The electorate is buying into the market distortion that the media and politicians are pawning off as a good economy when what we really have is precisely the opposite. And that's unfortunate. The middle class is still shrinking. People are still under paid. People are still on the streets. And the dollar has lost 96% of its value, Americans have very, very little purchasing power.

I am very curious to see how our debt and monetary policy situation will play out over the next 20+ years. Also, for the most part all major countries have this same problem. Germany and Australia not nearly as bad, but most of Europe, Canada, Japan, and certainly China so we are all in for some serious pain eventually, unless they can "discover" some new policy that fixes this. Doubtful.

I believe in global warming as the science behind it is 100% fact, BUT most people greatly over-exagerate the dangers (I think it is because the scientists just want more funding for their research etc) and try to claim that total doom is coming in 10-20 years when it is not- total doom is still very far away IMO. I would say this is a much more serious threat than Global warming.

 

[Natural Citizen]

The repo market’s cash shortage is largely because of the amount of debt instruments issued by the Treasury Department in late summer and early fall. Those banks used resources they would normally use for private sector lending and overnight loans to purchase those Treasury securities. Of course, that brings us to those open market operations Banker was talking about. This scenario will keep ocurring over and over and over again as the Treasury Department will have to continue issuing new debt instruments in order to finance continuing increases in in government spending.

 

[Natural Citizen]

I am very curious to see how our debt and monetary policy situation will play out over the next 20+ years. Also, for the most part all major countries have this same problem. Germany and Australia not nearly as bad, but most of Europe, Canada, Japan, and certainly China so we are all in for some serious pain eventually, unless they can "discover" some new policy that fixes this. Doubtful.

The Bank of International Settlements is already on it, predictably.

Trump renews call for negative U.S. interest rates

 

[Harpy Eagle]

The economy is booming!!! As the Trumpers like to say, even though the economic data is practically the same as Obama's and the deficit has exploded again, almost doubling Obama's 2016 annual deficit of $587 to over $1 Trillion, with deficits projected to be way over $1 T next yr and beyond.

But that massive increase in deficit spending is not enough to prop up our fiat economy we also need another round of QE!!!

We all heard the Trumpers whine and cry about QE under Obama, but I'm sure 99% of them won't cry now...

Now why would the greatest economy of all time need quantitative easing, on top of all the increase in deficit spending?

The FED was supposed to be reducing its balance sheet instead it is greatly expanding it to the tune of hundreds of Billions. They also expect QE4 to last at least until Q2 of next year.

If you took away Trump's massive deficit spending and this latest QE 4 we would be in recession.

You do realize we will have to pay for this some day right??

Now we see why trump had to declare bankruptcy so many times...

But hey we've got a "booming economy" don't we!!!! AHAHAHAHAHAH!!!!!!

Fed Pumps $70.1 Billion in One-Day Liquidity Into Financial Markets
https://seekingalpha.com/article/4295640-hello-qe4-and-damage-brings

Triggered!? 3% growth

3% growth?

are you drunk again?

Gross Domestic Product, Third Quarter 2019 (Advance Estimate) | U.S. Bureau of Economic Analysis (BEA)

 

[Jitss617]

The economy is booming!!! As the Trumpers like to say, even though the economic data is practically the same as Obama's and the deficit has exploded again, almost doubling Obama's 2016 annual deficit of $587 to over $1 Trillion, with deficits projected to be way over $1 T next yr and beyond.

But that massive increase in deficit spending is not enough to prop up our fiat economy we also need another round of QE!!!

We all heard the Trumpers whine and cry about QE under Obama, but I'm sure 99% of them won't cry now...

Now why would the greatest economy of all time need quantitative easing, on top of all the increase in deficit spending?

The FED was supposed to be reducing its balance sheet instead it is greatly expanding it to the tune of hundreds of Billions. They also expect QE4 to last at least until Q2 of next year.

If you took away Trump's massive deficit spending and this latest QE 4 we would be in recession.

You do realize we will have to pay for this some day right??

Now we see why trump had to declare bankruptcy so many times...

But hey we've got a "booming economy" don't we!!!! AHAHAHAHAHAH!!!!!!

Fed Pumps $70.1 Billion in One-Day Liquidity Into Financial Markets
https://seekingalpha.com/article/4295640-hello-qe4-and-damage-brings

Triggered!? 3% growth

3% growth?

are you drunk again?

Gross Domestic Product, Third Quarter 2019 (Advance Estimate) | U.S. Bureau of Economic Analysis (BEA)

View attachment 293666

Wage growth. Ya poor little man hahah

 

[Harpy Eagle]

The economy is booming!!! As the Trumpers like to say, even though the economic data is practically the same as Obama's and the deficit has exploded again, almost doubling Obama's 2016 annual deficit of $587 to over $1 Trillion, with deficits projected to be way over $1 T next yr and beyond.

But that massive increase in deficit spending is not enough to prop up our fiat economy we also need another round of QE!!!

We all heard the Trumpers whine and cry about QE under Obama, but I'm sure 99% of them won't cry now...

Now why would the greatest economy of all time need quantitative easing, on top of all the increase in deficit spending?

The FED was supposed to be reducing its balance sheet instead it is greatly expanding it to the tune of hundreds of Billions. They also expect QE4 to last at least until Q2 of next year.

If you took away Trump's massive deficit spending and this latest QE 4 we would be in recession.

You do realize we will have to pay for this some day right??

Now we see why trump had to declare bankruptcy so many times...

But hey we've got a "booming economy" don't we!!!! AHAHAHAHAHAH!!!!!!

Fed Pumps $70.1 Billion in One-Day Liquidity Into Financial Markets
https://seekingalpha.com/article/4295640-hello-qe4-and-damage-brings

Triggered!? 3% growth

3% growth?

are you drunk again?

Gross Domestic Product, Third Quarter 2019 (Advance Estimate) | U.S. Bureau of Economic Analysis (BEA)

View attachment 293666

Wage growth. Ya poor little man hahah

Then next time put that in your post dumb fuck.

 

[Natural Citizen]

With the deficit over a trillion smackers, there's no indication that Congres and the President want to cut spending. And especially during an election year, should Trump get re-elected, which he likely will, they won't reverse any of that, fiscal responsibility still won't be on the table at all. The problem here is that they'll just assume that the electorate supports huge deficits and huge federal budgets.

I mean, look at threads like these. Just browsing them one does get the idea that the practice is supported.

 

[Jitss617]

The economy is booming!!! As the Trumpers like to say, even though the economic data is practically the same as Obama's and the deficit has exploded again, almost doubling Obama's 2016 annual deficit of $587 to over $1 Trillion, with deficits projected to be way over $1 T next yr and beyond.

But that massive increase in deficit spending is not enough to prop up our fiat economy we also need another round of QE!!!

We all heard the Trumpers whine and cry about QE under Obama, but I'm sure 99% of them won't cry now...

Now why would the greatest economy of all time need quantitative easing, on top of all the increase in deficit spending?

The FED was supposed to be reducing its balance sheet instead it is greatly expanding it to the tune of hundreds of Billions. They also expect QE4 to last at least until Q2 of next year.

If you took away Trump's massive deficit spending and this latest QE 4 we would be in recession.

You do realize we will have to pay for this some day right??

Now we see why trump had to declare bankruptcy so many times...

But hey we've got a "booming economy" don't we!!!! AHAHAHAHAHAH!!!!!!

Fed Pumps $70.1 Billion in One-Day Liquidity Into Financial Markets
https://seekingalpha.com/article/4295640-hello-qe4-and-damage-brings

Triggered!? 3% growth

3% growth?

are you drunk again?

Gross Domestic Product, Third Quarter 2019 (Advance Estimate) | U.S. Bureau of Economic Analysis (BEA)

View attachment 293666

Wage growth. Ya poor little man hahah

Then next time put that in your post dumb fuck.

You are the only American unhappy about all these great things Trump is doing for America.. cheer up butter cup lol

 

[Natural Citizen]

Consumer debt is nearing 15 trillion. That includes credit card debt, auto finance, mortgages, student loans, etc.

I turned the tv on the other day (like a dumb ass) and they were actually bragging about all of the consumer debt spending like it was some great thing.

The President is already talking about experimenting with negative interest rates.

 

[Jitss617]

Consumer debt is nearing 15 trillion. That includes credit car debt, auto finance, mortgages, student loans, etc.

I turned the tv on the other day (like a dumb ass) and they were actually bragging about all of the consumer debt spending like it was some great thing.

3% wage growth to pay it off lol

Waaaaa waaaaa trumps winning

 

[Harpy Eagle]

The economy is booming!!! As the Trumpers like to say, even though the economic data is practically the same as Obama's and the deficit has exploded again, almost doubling Obama's 2016 annual deficit of $587 to over $1 Trillion, with deficits projected to be way over $1 T next yr and beyond.

But that massive increase in deficit spending is not enough to prop up our fiat economy we also need another round of QE!!!

We all heard the Trumpers whine and cry about QE under Obama, but I'm sure 99% of them won't cry now...

Now why would the greatest economy of all time need quantitative easing, on top of all the increase in deficit spending?

The FED was supposed to be reducing its balance sheet instead it is greatly expanding it to the tune of hundreds of Billions. They also expect QE4 to last at least until Q2 of next year.

If you took away Trump's massive deficit spending and this latest QE 4 we would be in recession.

You do realize we will have to pay for this some day right??

Now we see why trump had to declare bankruptcy so many times...

But hey we've got a "booming economy" don't we!!!! AHAHAHAHAHAH!!!!!!

Fed Pumps $70.1 Billion in One-Day Liquidity Into Financial Markets
https://seekingalpha.com/article/4295640-hello-qe4-and-damage-brings

Triggered!? 3% growth

3% growth?

are you drunk again?

Gross Domestic Product, Third Quarter 2019 (Advance Estimate) | U.S. Bureau of Economic Analysis (BEA)

View attachment 293666

Wage growth. Ya poor little man hahah

Then next time put that in your post dumb fuck.

You are the only American unhappy about all these great things Trump is doing for America.. cheer up butter cup lol

I like the good things he does, I do not like the bad. He clearly does not deserve to be worshiped like you worship him

 

[Harpy Eagle]

Consumer debt is nearing 15 trillion. That includes credit car debt, auto finance, mortgages, student loans, etc.

I turned the tv on the other day (like a dumb ass) and they were actually bragging about all of the consumer debt spending like it was some great thing.

3% wage growth to pay it off lol

Waaaaa waaaaa trumps winning

But that wage growth is not paying it off, people are taking on more debt than ever instead of paying it off.

 

[Natural Citizen]

Waaaaa waaaaa trumps winning

People have to let go of the partisan yip yap, Jitss. Seriously. Big shit is getting ready to go down. Dick waving about past and present presidents is not useful. They're all Keynesian. Every last one of em. They all believe in deficit finance. They all believe in central economic planning by a central bank. They all believe in a planned economy. They all believe in economic interventionism. They all believe in inflationism. They're all trustees in this same failed monetary policy which is a failure because of all of the above. It's a distraction from the actual problem. Respectfully speaking.

We have to return to free markets. It's the only way.

 

[Jitss617]

Waaaaa waaaaa trumps winning

People have to let go of the partisan yip yap, Jitss. Seriously. Big shit is getting ready to go down. Dick waving about past and present presidents is not useful. They're all Keynesian. Every last one of em. They all believe in deficit finance. They all believe in central economic planning by a central bank. They all believe in a planned economy. They all believe in economic interventionism. They all believe in inflationism. They're all trustees in this same failed monetary policy which is a failure because of all of the above. It's a distraction from the actual problem. Respectfully speaking.

We have to return to free markets. It's the only way.

Yes free markets it’s why I vote republican,, the freest markets are in red towns