QE4Ever!

[bendog]

The Fed started reducing their balance sheet, unwinding QE1, 2, and 3. They sold some of their assets, and burned the cash. So that took some liquidity out of the system.

Second, as a result of the last big economic crash, banks are now required to hold larger chunks of Tier 1 capital. So that took some liquidity out of the system.

Then Deficit Donald took office and started doubling the deficit to a trillion dollars. When the banks bought all that debt, that took a shit ton more of liquidity out of the system.

So now the Fed is reversing course and enacting QE4.

And Deficit Donald doesn't have the decency to even tweet a thank you. It would take, what...ten seconds?

We enter a Brave New World of macroeconomics. The Fed finances historic deficits and tax cuts for the uberwealthy by placing hundreds of millions of US debt on it's balance sheet. Those hundreds of millions go to all kinds of things from Ford Class aircraft carriers to disability for those not covered under Social Security to Medicaid to Student Loans (ok DeVos is ending that, of all things) tax cuts for employers covering workers HC insurance ….. Most of these "items' increase economic activity either through directly employing people, or spending by people getting money.

However when the Treasury pays the Fed interest either with taxes or new debt, the interest is magically paid back to the Treasury. And when a bond financing debt that the Fed bought matures …. the underlying debt is simply erased from the Fed's balance sheet.

Thus the debt is actually better than free money. It's never really repaid, and it earns interest for the borrower, the US Treasury. And the increase in economic activity really happened in that people did get to spend money! Our parents might make some crack about crack cocaine. Perhaps more accurately it is like Steven Earl Keen. The Road Goes on Forever and the Party Never Ends.

The actual money supply doesn't increase, so it is not inflationary from more dollars chasing the same goods/services. But it is like an addictive drug in that without continued injections of liquidity (or free borrowing) the economic engine ….. stops.

And when a bond financing debt that the Fed bought matures …. the underlying debt is simply erased from the Fed's balance sheet.

When the Treasury pays off the bond, the debt is erased.
Just as it's erased any time any bond is paid off.

The actual money supply doesn't increase,

When the Fed buys a bond, the money supply increases.
When the Fed sells a bond, or one of their bonds matures, the money supply decreases.

We don't operate off a money supply. Actual money supply is a small fraction of "net worths".

We don't operate off a money supply.

Not sure what you're trying to say here.

Actual money supply is a small fraction of "net worths".

Correct, so what?

Again, what does net worth have to do with inflation?

 

[pknopp]

The Fed started reducing their balance sheet, unwinding QE1, 2, and 3. They sold some of their assets, and burned the cash. So that took some liquidity out of the system.

Second, as a result of the last big economic crash, banks are now required to hold larger chunks of Tier 1 capital. So that took some liquidity out of the system.

Then Deficit Donald took office and started doubling the deficit to a trillion dollars. When the banks bought all that debt, that took a shit ton more of liquidity out of the system.

So now the Fed is reversing course and enacting QE4.

And Deficit Donald doesn't have the decency to even tweet a thank you. It would take, what...ten seconds?

We enter a Brave New World of macroeconomics. The Fed finances historic deficits and tax cuts for the uberwealthy by placing hundreds of millions of US debt on it's balance sheet. Those hundreds of millions go to all kinds of things from Ford Class aircraft carriers to disability for those not covered under Social Security to Medicaid to Student Loans (ok DeVos is ending that, of all things) tax cuts for employers covering workers HC insurance ….. Most of these "items' increase economic activity either through directly employing people, or spending by people getting money.

However when the Treasury pays the Fed interest either with taxes or new debt, the interest is magically paid back to the Treasury. And when a bond financing debt that the Fed bought matures …. the underlying debt is simply erased from the Fed's balance sheet.

Thus the debt is actually better than free money. It's never really repaid, and it earns interest for the borrower, the US Treasury. And the increase in economic activity really happened in that people did get to spend money! Our parents might make some crack about crack cocaine. Perhaps more accurately it is like Steven Earl Keen. The Road Goes on Forever and the Party Never Ends.

The actual money supply doesn't increase, so it is not inflationary from more dollars chasing the same goods/services. But it is like an addictive drug in that without continued injections of liquidity (or free borrowing) the economic engine ….. stops.

And when a bond financing debt that the Fed bought matures …. the underlying debt is simply erased from the Fed's balance sheet.

When the Treasury pays off the bond, the debt is erased.
Just as it's erased any time any bond is paid off.

The actual money supply doesn't increase,

When the Fed buys a bond, the money supply increases.
When the Fed sells a bond, or one of their bonds matures, the money supply decreases.

We don't operate off a money supply. Actual money supply is a small fraction of "net worths".

We don't operate off a money supply.

Not sure what you're trying to say here.

Actual money supply is a small fraction of "net worths".

Correct, so what?

Why discuss "money supply" when that isn't even a real thing?

 

[bendog]

The Fed started reducing their balance sheet, unwinding QE1, 2, and 3. They sold some of their assets, and burned the cash. So that took some liquidity out of the system.

Second, as a result of the last big economic crash, banks are now required to hold larger chunks of Tier 1 capital. So that took some liquidity out of the system.

Then Deficit Donald took office and started doubling the deficit to a trillion dollars. When the banks bought all that debt, that took a shit ton more of liquidity out of the system.

So now the Fed is reversing course and enacting QE4.

And Deficit Donald doesn't have the decency to even tweet a thank you. It would take, what...ten seconds?

We enter a Brave New World of macroeconomics. The Fed finances historic deficits and tax cuts for the uberwealthy by placing hundreds of millions of US debt on it's balance sheet. Those hundreds of millions go to all kinds of things from Ford Class aircraft carriers to disability for those not covered under Social Security to Medicaid to Student Loans (ok DeVos is ending that, of all things) tax cuts for employers covering workers HC insurance ….. Most of these "items' increase economic activity either through directly employing people, or spending by people getting money.

However when the Treasury pays the Fed interest either with taxes or new debt, the interest is magically paid back to the Treasury. And when a bond financing debt that the Fed bought matures …. the underlying debt is simply erased from the Fed's balance sheet.

Thus the debt is actually better than free money. It's never really repaid, and it earns interest for the borrower, the US Treasury. And the increase in economic activity really happened in that people did get to spend money! Our parents might make some crack about crack cocaine. Perhaps more accurately it is like Steven Earl Keen. The Road Goes on Forever and the Party Never Ends.

The actual money supply doesn't increase, so it is not inflationary from more dollars chasing the same goods/services. But it is like an addictive drug in that without continued injections of liquidity (or free borrowing) the economic engine ….. stops.

And when a bond financing debt that the Fed bought matures …. the underlying debt is simply erased from the Fed's balance sheet.

When the Treasury pays off the bond, the debt is erased.
Just as it's erased any time any bond is paid off.

The actual money supply doesn't increase,

When the Fed buys a bond, the money supply increases.
When the Fed sells a bond, or one of their bonds matures, the money supply decreases.

We don't operate off a money supply. Actual money supply is a small fraction of "net worths".

What does 'net worth' have to do with inflation?

Rents go up.

Not necessarily everywhere. And again it's irrelevant to the question of gnp growth financed with QE

 

[pknopp]

We enter a Brave New World of macroeconomics. The Fed finances historic deficits and tax cuts for the uberwealthy by placing hundreds of millions of US debt on it's balance sheet. Those hundreds of millions go to all kinds of things from Ford Class aircraft carriers to disability for those not covered under Social Security to Medicaid to Student Loans (ok DeVos is ending that, of all things) tax cuts for employers covering workers HC insurance ….. Most of these "items' increase economic activity either through directly employing people, or spending by people getting money.

However when the Treasury pays the Fed interest either with taxes or new debt, the interest is magically paid back to the Treasury. And when a bond financing debt that the Fed bought matures …. the underlying debt is simply erased from the Fed's balance sheet.

Thus the debt is actually better than free money. It's never really repaid, and it earns interest for the borrower, the US Treasury. And the increase in economic activity really happened in that people did get to spend money! Our parents might make some crack about crack cocaine. Perhaps more accurately it is like Steven Earl Keen. The Road Goes on Forever and the Party Never Ends.

The actual money supply doesn't increase, so it is not inflationary from more dollars chasing the same goods/services. But it is like an addictive drug in that without continued injections of liquidity (or free borrowing) the economic engine ….. stops.

And when a bond financing debt that the Fed bought matures …. the underlying debt is simply erased from the Fed's balance sheet.

When the Treasury pays off the bond, the debt is erased.
Just as it's erased any time any bond is paid off.

The actual money supply doesn't increase,

When the Fed buys a bond, the money supply increases.
When the Fed sells a bond, or one of their bonds matures, the money supply decreases.

We don't operate off a money supply. Actual money supply is a small fraction of "net worths".

What does 'net worth' have to do with inflation?

Rents go up.

Not necessarily everywhere. And again it's irrelevant to the question of gnp growth financed with QE

Everywhere isn't benefiting from QE.

 

[bendog]

The Fed started reducing their balance sheet, unwinding QE1, 2, and 3. They sold some of their assets, and burned the cash. So that took some liquidity out of the system.

Second, as a result of the last big economic crash, banks are now required to hold larger chunks of Tier 1 capital. So that took some liquidity out of the system.

Then Deficit Donald took office and started doubling the deficit to a trillion dollars. When the banks bought all that debt, that took a shit ton more of liquidity out of the system.

So now the Fed is reversing course and enacting QE4.

And Deficit Donald doesn't have the decency to even tweet a thank you. It would take, what...ten seconds?

We enter a Brave New World of macroeconomics. The Fed finances historic deficits and tax cuts for the uberwealthy by placing hundreds of millions of US debt on it's balance sheet. Those hundreds of millions go to all kinds of things from Ford Class aircraft carriers to disability for those not covered under Social Security to Medicaid to Student Loans (ok DeVos is ending that, of all things) tax cuts for employers covering workers HC insurance ….. Most of these "items' increase economic activity either through directly employing people, or spending by people getting money.

However when the Treasury pays the Fed interest either with taxes or new debt, the interest is magically paid back to the Treasury. And when a bond financing debt that the Fed bought matures …. the underlying debt is simply erased from the Fed's balance sheet.

Thus the debt is actually better than free money. It's never really repaid, and it earns interest for the borrower, the US Treasury. And the increase in economic activity really happened in that people did get to spend money! Our parents might make some crack about crack cocaine. Perhaps more accurately it is like Steven Earl Keen. The Road Goes on Forever and the Party Never Ends.

The actual money supply doesn't increase, so it is not inflationary from more dollars chasing the same goods/services. But it is like an addictive drug in that without continued injections of liquidity (or free borrowing) the economic engine ….. stops.

And when a bond financing debt that the Fed bought matures …. the underlying debt is simply erased from the Fed's balance sheet.

When the Treasury pays off the bond, the debt is erased.
Just as it's erased any time any bond is paid off.

The actual money supply doesn't increase,

When the Fed buys a bond, the money supply increases.
When the Fed sells a bond, or one of their bonds matures, the money supply decreases.

We don't operate off a money supply. Actual money supply is a small fraction of "net worths".

We don't operate off a money supply.

Not sure what you're trying to say here.

Actual money supply is a small fraction of "net worths".

Correct, so what?

Why discuss "money supply" when that isn't even a real thing?

money supply is very real when deficit spending by the treasury increases. But the point is THAT IS NOT HAPPENEING WITH QE

 

[Toddsterpatriot]

The Fed started reducing their balance sheet, unwinding QE1, 2, and 3. They sold some of their assets, and burned the cash. So that took some liquidity out of the system.

Second, as a result of the last big economic crash, banks are now required to hold larger chunks of Tier 1 capital. So that took some liquidity out of the system.

Then Deficit Donald took office and started doubling the deficit to a trillion dollars. When the banks bought all that debt, that took a shit ton more of liquidity out of the system.

So now the Fed is reversing course and enacting QE4.

And Deficit Donald doesn't have the decency to even tweet a thank you. It would take, what...ten seconds?

We enter a Brave New World of macroeconomics. The Fed finances historic deficits and tax cuts for the uberwealthy by placing hundreds of millions of US debt on it's balance sheet. Those hundreds of millions go to all kinds of things from Ford Class aircraft carriers to disability for those not covered under Social Security to Medicaid to Student Loans (ok DeVos is ending that, of all things) tax cuts for employers covering workers HC insurance ….. Most of these "items' increase economic activity either through directly employing people, or spending by people getting money.

However when the Treasury pays the Fed interest either with taxes or new debt, the interest is magically paid back to the Treasury. And when a bond financing debt that the Fed bought matures …. the underlying debt is simply erased from the Fed's balance sheet.

Thus the debt is actually better than free money. It's never really repaid, and it earns interest for the borrower, the US Treasury. And the increase in economic activity really happened in that people did get to spend money! Our parents might make some crack about crack cocaine. Perhaps more accurately it is like Steven Earl Keen. The Road Goes on Forever and the Party Never Ends.

The actual money supply doesn't increase, so it is not inflationary from more dollars chasing the same goods/services. But it is like an addictive drug in that without continued injections of liquidity (or free borrowing) the economic engine ….. stops.

And when a bond financing debt that the Fed bought matures …. the underlying debt is simply erased from the Fed's balance sheet.

When the Treasury pays off the bond, the debt is erased.
Just as it's erased any time any bond is paid off.

The actual money supply doesn't increase,

When the Fed buys a bond, the money supply increases.
When the Fed sells a bond, or one of their bonds matures, the money supply decreases.

We don't operate off a money supply. Actual money supply is a small fraction of "net worths".

We don't operate off a money supply.

Not sure what you're trying to say here.

Actual money supply is a small fraction of "net worths".

Correct, so what?

Why discuss "money supply" when that isn't even a real thing?

Why do you feel money supply isn't a real thing?

 

[pknopp]

We enter a Brave New World of macroeconomics. The Fed finances historic deficits and tax cuts for the uberwealthy by placing hundreds of millions of US debt on it's balance sheet. Those hundreds of millions go to all kinds of things from Ford Class aircraft carriers to disability for those not covered under Social Security to Medicaid to Student Loans (ok DeVos is ending that, of all things) tax cuts for employers covering workers HC insurance ….. Most of these "items' increase economic activity either through directly employing people, or spending by people getting money.

However when the Treasury pays the Fed interest either with taxes or new debt, the interest is magically paid back to the Treasury. And when a bond financing debt that the Fed bought matures …. the underlying debt is simply erased from the Fed's balance sheet.

Thus the debt is actually better than free money. It's never really repaid, and it earns interest for the borrower, the US Treasury. And the increase in economic activity really happened in that people did get to spend money! Our parents might make some crack about crack cocaine. Perhaps more accurately it is like Steven Earl Keen. The Road Goes on Forever and the Party Never Ends.

The actual money supply doesn't increase, so it is not inflationary from more dollars chasing the same goods/services. But it is like an addictive drug in that without continued injections of liquidity (or free borrowing) the economic engine ….. stops.

And when a bond financing debt that the Fed bought matures …. the underlying debt is simply erased from the Fed's balance sheet.

When the Treasury pays off the bond, the debt is erased.
Just as it's erased any time any bond is paid off.

The actual money supply doesn't increase,

When the Fed buys a bond, the money supply increases.
When the Fed sells a bond, or one of their bonds matures, the money supply decreases.

We don't operate off a money supply. Actual money supply is a small fraction of "net worths".

We don't operate off a money supply.

Not sure what you're trying to say here.

Actual money supply is a small fraction of "net worths".

Correct, so what?

Why discuss "money supply" when that isn't even a real thing?

money supply is very real when deficit spending by the treasury increases. But the point is THAT IS NOT HAPPENEING WITH QE

And that explains why we are in a mess.

 

[pknopp]

We enter a Brave New World of macroeconomics. The Fed finances historic deficits and tax cuts for the uberwealthy by placing hundreds of millions of US debt on it's balance sheet. Those hundreds of millions go to all kinds of things from Ford Class aircraft carriers to disability for those not covered under Social Security to Medicaid to Student Loans (ok DeVos is ending that, of all things) tax cuts for employers covering workers HC insurance ….. Most of these "items' increase economic activity either through directly employing people, or spending by people getting money.

However when the Treasury pays the Fed interest either with taxes or new debt, the interest is magically paid back to the Treasury. And when a bond financing debt that the Fed bought matures …. the underlying debt is simply erased from the Fed's balance sheet.

Thus the debt is actually better than free money. It's never really repaid, and it earns interest for the borrower, the US Treasury. And the increase in economic activity really happened in that people did get to spend money! Our parents might make some crack about crack cocaine. Perhaps more accurately it is like Steven Earl Keen. The Road Goes on Forever and the Party Never Ends.

The actual money supply doesn't increase, so it is not inflationary from more dollars chasing the same goods/services. But it is like an addictive drug in that without continued injections of liquidity (or free borrowing) the economic engine ….. stops.

And when a bond financing debt that the Fed bought matures …. the underlying debt is simply erased from the Fed's balance sheet.

When the Treasury pays off the bond, the debt is erased.
Just as it's erased any time any bond is paid off.

The actual money supply doesn't increase,

When the Fed buys a bond, the money supply increases.
When the Fed sells a bond, or one of their bonds matures, the money supply decreases.

We don't operate off a money supply. Actual money supply is a small fraction of "net worths".

We don't operate off a money supply.

Not sure what you're trying to say here.

Actual money supply is a small fraction of "net worths".

Correct, so what?

Why discuss "money supply" when that isn't even a real thing?

Why do you feel money supply isn't a real thing?

I already explained why. A billionaire does not have a billion dollars.

 

[Natural Citizen]

Again, what does net worth have to do with inflation?

I've noticed that there are a few people in the conventional financial markets kind of waking up a little bit and saying, wait a minute, maybe we aren't looking at the right signals, maybe we oughtta start looking at the asset prices. There's a bond bubble, theres a stock market bubble, realestate, derivatives, etc.

 

[Muhammed]

So, then you don't. Got a link to the audio or video?

Are you sure you didn't 'hear' what a fake news outlet told you to hear?

You failed to answer my question.

I asked you first, you feeble-minded brainwashed idiot.

The video was already supplied to you. Are you saying it's fake?

I'm pointing out the FACT that the article is fake news.

We are discussing the video.

What about the video, jackass?

 

[Toddsterpatriot]

And when a bond financing debt that the Fed bought matures …. the underlying debt is simply erased from the Fed's balance sheet.

When the Treasury pays off the bond, the debt is erased.
Just as it's erased any time any bond is paid off.

The actual money supply doesn't increase,

When the Fed buys a bond, the money supply increases.
When the Fed sells a bond, or one of their bonds matures, the money supply decreases.

We don't operate off a money supply. Actual money supply is a small fraction of "net worths".

We don't operate off a money supply.

Not sure what you're trying to say here.

Actual money supply is a small fraction of "net worths".

Correct, so what?

Why discuss "money supply" when that isn't even a real thing?

Why do you feel money supply isn't a real thing?

I already explained why. A billionaire does not have a billion dollars.

That doesn't mean that checking accounts, savings accounts and cash isn't our money supply.

 

[pknopp]

We don't operate off a money supply. Actual money supply is a small fraction of "net worths".

We don't operate off a money supply.

Not sure what you're trying to say here.

Actual money supply is a small fraction of "net worths".

Correct, so what?

Why discuss "money supply" when that isn't even a real thing?

Why do you feel money supply isn't a real thing?

I already explained why. A billionaire does not have a billion dollars.

That doesn't mean that checking accounts, savings accounts and cash isn't our money supply.

For those left behind it is.

 

[Toddsterpatriot]

We don't operate off a money supply.

Not sure what you're trying to say here.

Actual money supply is a small fraction of "net worths".

Correct, so what?

Why discuss "money supply" when that isn't even a real thing?

Why do you feel money supply isn't a real thing?

I already explained why. A billionaire does not have a billion dollars.

That doesn't mean that checking accounts, savings accounts and cash isn't our money supply.

For those left behind it is.

The fact that some people are left behind does not mean the money supply does not exist.

 

[pknopp]

Why discuss "money supply" when that isn't even a real thing?

Why do you feel money supply isn't a real thing?

I already explained why. A billionaire does not have a billion dollars.

That doesn't mean that checking accounts, savings accounts and cash isn't our money supply.

For those left behind it is.

The fact that some people are left behind does not mean the money supply does not exist.

I didn't say it didn't exist. We all have money. My argument is when talking about the economy it's mostly irrelevant.

 

[Toddsterpatriot]

Why do you feel money supply isn't a real thing?

I already explained why. A billionaire does not have a billion dollars.

That doesn't mean that checking accounts, savings accounts and cash isn't our money supply.

For those left behind it is.

The fact that some people are left behind does not mean the money supply does not exist.

I didn't say it didn't exist. We all have money. My argument is when talking about the economy it's mostly irrelevant.

My argument is when talking about the economy it's mostly irrelevant.

Ok. It's a real thing that you think is mostly irrelevant to the economy.

 

[bendog]

The OP is "QE4ever!" That is the topic. My response was to G5000, although obviously its an open board. Nevertheless, money supply is not an antiquated topic. QE affects money supply, although with some differences of money supply as increased by the Treasury. QE includes direct expansion of dollars via govt purchases of bonds, and as practiced by Powell to placate Trump, that means purchase of US debt. Along with letting the govt run historic deficits, this helps keep interest rates down, since the Fed is not like a "real investor" who wants as high a return on capital as possible. The Fed doesn't really care because any interest it earns, it must rebate to the Treasury.

QE can also be lowering the cost of borrowing money by private investors. That was what the Bernank originally went towards, although he si directly purchase bonds. He proposed letting those drop off the feds balance sheet as they matured, which in effect LOWERED money supply, but Powell reversed that course.

The question I proposed was … What will this cause? We've never tried it before. Japan hasn't, not really. Trump contemplates, apparently, permanent economic stimulus via the Fed, whose purpose for fifty some years has been to guard against inflation. Although for the past twenty years or so, some have been asking "what inflation?" It actually seems difficult for the Fed to achieve the inflation it wants.

But what are the other effects? Some warn that when the next recession happens, the Fed may not be able to just gobble up more debt because that will kill the dollar, and possibly end the US dollar as the reserve currency.

Some warn that by depressing interest rates despite historic debt, the Fed will find for investors no longer want US debt, which has been seen as the safest place to put actual money (not QE increases)

And lastly "net worth" has no application in terms of nations. "Financial position" is a similar concept, but that is related to, but not directly, what I asked about. But obviously if the econ crashed due to inflation or lack of demand for US debt, that would affect the US financial position.

Happy New Year.

 

[pknopp]

The OP is "QE4ever!" That is the topic. My response was to G5000, although obviously its an open board. Nevertheless, money supply is not an antiquated topic. QE affects money supply, although with some differences of money supply as increased by the Treasury. QE includes direct expansion of dollars via govt purchases of bonds, and as practiced by Powell to placate Trump, that means purchase of US debt. Along with letting the govt run historic deficits, this helps keep interest rates down, since the Fed is not like a "real investor" who wants as high a return on capital as possible. The Fed doesn't really care because any interest it earns, it must rebate to the Treasury.

QE can also be lowering the cost of borrowing money by private investors. That was what the Bernank originally went towards, although he si directly purchase bonds. He proposed letting those drop off the feds balance sheet as they matured, which in effect LOWERED money supply, but Powell reversed that course.

The question I proposed was … What will this cause? We've never tried it before. Japan hasn't, not really. Trump contemplates, apparently, permanent economic stimulus via the Fed, whose purpose for fifty some years has been to guard against inflation. Although for the past twenty years or so, some have been asking "what inflation?" It actually seems difficult for the Fed to achieve the inflation it wants.

But what are the other effects? Some warn that when the next recession happens, the Fed may not be able to just gobble up more debt because that will kill the dollar, and possibly end the US dollar as the reserve currency.

Some warn that by depressing interest rates despite historic debt, the Fed will find for investors no longer want US debt, which has been seen as the safest place to put actual money (not QE increases)

And lastly "net worth" has no application in terms of nations. "Financial position" is a similar concept, but that is related to, but not directly, what I asked about. But obviously if the econ crashed due to inflation or lack of demand for US debt, that would affect the US financial position.

Happy New Year.

What will this cause? It's going to make the rest of the world ditch the dollar.

 

[Toddsterpatriot]

The OP is "QE4ever!" That is the topic. My response was to G5000, although obviously its an open board. Nevertheless, money supply is not an antiquated topic. QE affects money supply, although with some differences of money supply as increased by the Treasury. QE includes direct expansion of dollars via govt purchases of bonds, and as practiced by Powell to placate Trump, that means purchase of US debt. Along with letting the govt run historic deficits, this helps keep interest rates down, since the Fed is not like a "real investor" who wants as high a return on capital as possible. The Fed doesn't really care because any interest it earns, it must rebate to the Treasury.

QE can also be lowering the cost of borrowing money by private investors. That was what the Bernank originally went towards, although he si directly purchase bonds. He proposed letting those drop off the feds balance sheet as they matured, which in effect LOWERED money supply, but Powell reversed that course.

The question I proposed was … What will this cause? We've never tried it before. Japan hasn't, not really. Trump contemplates, apparently, permanent economic stimulus via the Fed, whose purpose for fifty some years has been to guard against inflation. Although for the past twenty years or so, some have been asking "what inflation?" It actually seems difficult for the Fed to achieve the inflation it wants.

But what are the other effects? Some warn that when the next recession happens, the Fed may not be able to just gobble up more debt because that will kill the dollar, and possibly end the US dollar as the reserve currency.

Some warn that by depressing interest rates despite historic debt, the Fed will find for investors no longer want US debt, which has been seen as the safest place to put actual money (not QE increases)

And lastly "net worth" has no application in terms of nations. "Financial position" is a similar concept, but that is related to, but not directly, what I asked about. But obviously if the econ crashed due to inflation or lack of demand for US debt, that would affect the US financial position.

Happy New Year.

What will this cause? It's going to make the rest of the world ditch the dollar.

It's going to make the rest of the world ditch the dollar.

In favor of what alternative?

 

[pknopp]

The OP is "QE4ever!" That is the topic. My response was to G5000, although obviously its an open board. Nevertheless, money supply is not an antiquated topic. QE affects money supply, although with some differences of money supply as increased by the Treasury. QE includes direct expansion of dollars via govt purchases of bonds, and as practiced by Powell to placate Trump, that means purchase of US debt. Along with letting the govt run historic deficits, this helps keep interest rates down, since the Fed is not like a "real investor" who wants as high a return on capital as possible. The Fed doesn't really care because any interest it earns, it must rebate to the Treasury.

QE can also be lowering the cost of borrowing money by private investors. That was what the Bernank originally went towards, although he si directly purchase bonds. He proposed letting those drop off the feds balance sheet as they matured, which in effect LOWERED money supply, but Powell reversed that course.

The question I proposed was … What will this cause? We've never tried it before. Japan hasn't, not really. Trump contemplates, apparently, permanent economic stimulus via the Fed, whose purpose for fifty some years has been to guard against inflation. Although for the past twenty years or so, some have been asking "what inflation?" It actually seems difficult for the Fed to achieve the inflation it wants.

But what are the other effects? Some warn that when the next recession happens, the Fed may not be able to just gobble up more debt because that will kill the dollar, and possibly end the US dollar as the reserve currency.

Some warn that by depressing interest rates despite historic debt, the Fed will find for investors no longer want US debt, which has been seen as the safest place to put actual money (not QE increases)

And lastly "net worth" has no application in terms of nations. "Financial position" is a similar concept, but that is related to, but not directly, what I asked about. But obviously if the econ crashed due to inflation or lack of demand for US debt, that would affect the US financial position.

Happy New Year.

What will this cause? It's going to make the rest of the world ditch the dollar.

It's going to make the rest of the world ditch the dollar.

In favor of what alternative?

It's hard to tell. It's already started. We bitch when other countries try and manipulate their money supply. We start wars to keep it on top. Other countries are growing tired.

China-Iran Oil Deal Undermines the Dollar

China Seeks To Undermine U.S. Dollar, Introduce Yuan Into Pakistan - The Media Line

The Dollar Underpins American Power. Rivals Are Building Workarounds.

 

[Toddsterpatriot]

The OP is "QE4ever!" That is the topic. My response was to G5000, although obviously its an open board. Nevertheless, money supply is not an antiquated topic. QE affects money supply, although with some differences of money supply as increased by the Treasury. QE includes direct expansion of dollars via govt purchases of bonds, and as practiced by Powell to placate Trump, that means purchase of US debt. Along with letting the govt run historic deficits, this helps keep interest rates down, since the Fed is not like a "real investor" who wants as high a return on capital as possible. The Fed doesn't really care because any interest it earns, it must rebate to the Treasury.

QE can also be lowering the cost of borrowing money by private investors. That was what the Bernank originally went towards, although he si directly purchase bonds. He proposed letting those drop off the feds balance sheet as they matured, which in effect LOWERED money supply, but Powell reversed that course.

The question I proposed was … What will this cause? We've never tried it before. Japan hasn't, not really. Trump contemplates, apparently, permanent economic stimulus via the Fed, whose purpose for fifty some years has been to guard against inflation. Although for the past twenty years or so, some have been asking "what inflation?" It actually seems difficult for the Fed to achieve the inflation it wants.

But what are the other effects? Some warn that when the next recession happens, the Fed may not be able to just gobble up more debt because that will kill the dollar, and possibly end the US dollar as the reserve currency.

Some warn that by depressing interest rates despite historic debt, the Fed will find for investors no longer want US debt, which has been seen as the safest place to put actual money (not QE increases)

And lastly "net worth" has no application in terms of nations. "Financial position" is a similar concept, but that is related to, but not directly, what I asked about. But obviously if the econ crashed due to inflation or lack of demand for US debt, that would affect the US financial position.

Happy New Year.

What will this cause? It's going to make the rest of the world ditch the dollar.

It's going to make the rest of the world ditch the dollar.

In favor of what alternative?

It's hard to tell. It's already started. We bitch when other countries try and manipulate their money supply. We start wars to keep it on top. Other countries are growing tired.

China-Iran Oil Deal Undermines the Dollar

China Seeks To Undermine U.S. Dollar, Introduce Yuan Into Pakistan - The Media Line

The Dollar Underpins American Power. Rivals Are Building Workarounds.

Nobody wants to hold Chinese Yuan.
Or Iranian Rial. Or Pakistani Rupee.