Good thing the government gets to LIE about INFLATION

[p1k3]

I think Zimbabwe tried this. I can't wait to get my first $1,000,000 bill as change at the QT. 

If I was more cynical, I would say this is purely a political move so Obama (and Bernanke) can keep his job. Romney has already said he would be inclined to replace him.

If/when inflation becomes a problem interests rates will be raised and then inflation won't be a problem. I hate to appeal to authority like this, but you should trust the MIT and Harvard educated economist.

Dumb. Inflation is already happening, but the gov just gets to lie about it. eff the MIT and Harvard economists. I know more than those dumb fucks with a B.S. from Kansas State.

[p1k3]

It's time for the Keynesians to come clean on this one. Sorry... You guys lost. Your stupid bull crap hasn't worked and it never will. Go ahead and throw in the towel.

[bubbles4ksu]

I think Zimbabwe tried this. I can't wait to get my first $1,000,000 bill as change at the QT. 

If I was more cynical, I would say this is purely a political move so Obama (and Bernanke) can keep his job. Romney has already said he would be inclined to replace him.

If/when inflation becomes a problem interests rates will be raised and then inflation won't be a problem. I hate to appeal to authority like this, but you should trust the MIT and Harvard educated economist.

and how has "trusting" Ivy League educated econ's and poli's worked out so far?

biggest economy in the world?

[06wildcat]

I love how the Fed has absolutely ruined Pike's life. Good job Bernanke. 

[mortons toe]

I think Zimbabwe tried this. I can't wait to get my first $1,000,000 bill as change at the QT. 

If I was more cynical, I would say this is purely a political move so Obama (and Bernanke) can keep his job. Romney has already said he would be inclined to replace him.

If/when inflation becomes a problem interests rates will be raised and then inflation won't be a problem. I hate to appeal to authority like this, but you should trust the MIT and Harvard educated economist.

and how has "trusting" Ivy League educated econ's and poli's worked out so far?

biggest economy in the world?

amazing how a few World Wars and a fantastic geographic location play into that, eh...

[mortons toe]

A very easy to interpret quote from Marc Faber - “QE helps rich people whose asset prices go up and whose net worth then increases but it doesn’t flow to the man on the street who is faced with higher costs of living with price rises. You just have a small economy that is booming but the majority of the economy is damaged by QE,” he said.

“The money printers are responsible for this crisis. If we continue with this expansionist monetary policy we won’t be facing a fiscal cliff it will be a fiscal grand canyon,” he added.

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

The general idea behind QE is that the the Federal Reserve will inject liquidity into the markets, not to help employment directly, but to cause asset appreciation. With the Dow at 16,000, the Fed is betting that “the wealth effect” will ripple into the general economy, helping to improve tax receipts and eventually pay down the national debt.   

For some reason I feel like this isn't going to work.

Might not for you, but for my stockholding ass it will sure help.

only rich people benefit from the stock market going up
-B.O. spring of 2008

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

The general idea behind QE is that the the Federal Reserve will inject liquidity into the markets, not to help employment directly, but to cause asset appreciation. With the Dow at 16,000, the Fed is betting that “the wealth effect” will ripple into the general economy, helping to improve tax receipts and eventually pay down the national debt.   

For some reason I feel like this isn't going to work.

Also, that statement is blatantly inaccurate.

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

All QE has done is pull a bunch of dogshit bonds out of the market and replace them with stale cash so we can all pretend like the dogshit bonds don't exist and pretend like our big banks are well capitalized.

Also if you want to refi your house and you can get a decent appraisal and are actually working you can, but this further squeezes the big banks.

[EMAWican]

The general idea behind QE is that the the Federal Reserve will inject liquidity into the markets, not to help employment directly, but to cause asset appreciation. With the Dow at 16,000, the Fed is betting that “the wealth effect” will ripple into the general economy, helping to improve tax receipts and eventually pay down the national debt.   

For some reason I feel like this isn't going to work.

Also, that statement is blatantly inaccurate.

Uh. Wut.

Ben himself said that the goal of QE would be to reduce the cost of borrowing money for corporations, bring down mortgage rates even further and potentially boost the stock market, increasing wealth effects for consumers to spur more spending.

[p1k3]

The general idea behind QE is that the the Federal Reserve will inject liquidity into the markets, not to help employment directly, but to cause asset appreciation. With the Dow at 16,000, the Fed is betting that “the wealth effect” will ripple into the general economy, helping to improve tax receipts and eventually pay down the national debt.   

For some reason I feel like this isn't going to work.

Also, that statement is blatantly inaccurate.

Uh. Wut.

Ben himself said that the goal of QE would be to reduce the cost of borrowing money for corporations, bring down mortgage rates even further and potentially boost the stock market, increasing wealth effects for consumers to spur more spending.

Borrowing money is the problem. Not the solution.

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

The general idea behind QE is that the the Federal Reserve will inject liquidity into the markets, not to help employment directly, but to cause asset appreciation. With the Dow at 16,000, the Fed is betting that “the wealth effect” will ripple into the general economy, helping to improve tax receipts and eventually pay down the national debt.   

For some reason I feel like this isn't going to work.

Also, that statement is blatantly inaccurate.

Uh. Wut.

Ben himself said that the goal of QE would be to reduce the cost of borrowing money for corporations, bring down mortgage rates even further and potentially boost the stock market, increasing wealth effects for consumers to spur more spending.

Moving past the obvious fallacies in your original statement and your apparent complete misunderstanding of the role of the federal reserve, I have one question for you, are you a supply-sider?

[EMAWican]

The general idea behind QE is that the the Federal Reserve will inject liquidity into the markets, not to help employment directly, but to cause asset appreciation. With the Dow at 16,000, the Fed is betting that “the wealth effect” will ripple into the general economy, helping to improve tax receipts and eventually pay down the national debt.   

For some reason I feel like this isn't going to work.

Also, that statement is blatantly inaccurate.

Uh. Wut.

Ben himself said that the goal of QE would be to reduce the cost of borrowing money for corporations, bring down mortgage rates even further and potentially boost the stock market, increasing wealth effects for consumers to spur more spending.

Moving past the obvious fallacies in your original statement and your apparent complete misunderstanding of the role of the federal reserve, I have one question for you, are you a supply-sider?

My understanding of QE/the Fed is based on statements from Ben Bernanke, and I didn't realize that statements made by the policy makers are "obvious fallacies".  It might differ from my personal opinion or those of others, but many people think that QE is supposed to immediately/directly produce private jobs-that is not the case.  Job creation is on the government, and since this is the first time that we have had unlimited QE ("get the eff outta of my" - Ben B), it will be interesting to see if the trickle-down theory works.  I know I like this idea a whole lot better than the flash in the pan mass mailing of checks to stimulate the economy.

And no, I am for lowering taxes on the middle and lower-class, and increasing taxes on the upper-class to make up the short-term difference, as I believe since we are so materialistic these days, demand fo sho drives upper-class/corporate wealth.



   

[EMAWican]

The general idea behind QE is that the the Federal Reserve will inject liquidity into the markets, not to help employment directly, but to cause asset appreciation. With the Dow at 16,000, the Fed is betting that “the wealth effect” will ripple into the general economy, helping to improve tax receipts and eventually pay down the national debt.   

For some reason I feel like this isn't going to work.

Also, that statement is blatantly inaccurate.

Uh. Wut.

Ben himself said that the goal of QE would be to reduce the cost of borrowing money for corporations, bring down mortgage rates even further and potentially boost the stock market, increasing wealth effects for consumers to spur more spending.

Borrowing money is the problem. Not the solution.

The Fed doesn't borrow money; it creates it, literally, with QE and eventually the purchased debt matures again.

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

The general idea behind QE is that the the Federal Reserve will inject liquidity into the markets, not to help employment directly, but to cause asset appreciation. With the Dow at 16,000, the Fed is betting that “the wealth effect” will ripple into the general economy, helping to improve tax receipts and eventually pay down the national debt.   

For some reason I feel like this isn't going to work.

Also, that statement is blatantly inaccurate.

Uh. Wut.

Ben himself said that the goal of QE would be to reduce the cost of borrowing money for corporations, bring down mortgage rates even further and potentially boost the stock market, increasing wealth effects for consumers to spur more spending.

Moving past the obvious fallacies in your original statement and your apparent complete misunderstanding of the role of the federal reserve, I have one question for you, are you a supply-sider?

My understanding of QE/the Fed is based on statements from Ben Bernanke, and I didn't realize that statements made by the policy makers are "obvious fallacies".  It might differ from my personal opinion or those of others, but many people think that QE is supposed to immediately/directly produce private jobs-that is not the case.  Job creation is on the government, and since this is the first time that we have had unlimited QE ("get the eff outta of my" - Ben B), it will be interesting to see if the trickle-down theory works.  I know I like this idea a whole lot better than the flash in the pan mass mailing of checks to stimulate the economy.

And no, I am for lowering taxes on the middle and lower-class, and increasing taxes on the upper-class to make up the short-term difference, as I believe since we are so materialistic these days, demand fo sho drives upper-class/corporate wealth.
 

Incoherent

[EMAWican]

The general idea behind QE is that the the Federal Reserve will inject liquidity into the markets, not to help employment directly, but to cause asset appreciation. With the Dow at 16,000, the Fed is betting that “the wealth effect” will ripple into the general economy, helping to improve tax receipts and eventually pay down the national debt.   

For some reason I feel like this isn't going to work.

Also, that statement is blatantly inaccurate.

Uh. Wut.

Ben himself said that the goal of QE would be to reduce the cost of borrowing money for corporations, bring down mortgage rates even further and potentially boost the stock market, increasing wealth effects for consumers to spur more spending.

Moving past the obvious fallacies in your original statement and your apparent complete misunderstanding of the role of the federal reserve, I have one question for you, are you a supply-sider?

My understanding of QE/the Fed is based on statements from Ben Bernanke, and I didn't realize that statements made by the policy makers are "obvious fallacies".  It might differ from my personal opinion or those of others, but many people think that QE is supposed to immediately/directly produce private jobs-that is not the case.  Job creation is on the government, and since this is the first time that we have had unlimited QE ("get the eff outta of my" - Ben B), it will be interesting to see if the trickle-down theory works.  I know I like this idea a whole lot better than the flash in the pan mass mailing of checks to stimulate the economy.

And no, I am for lowering taxes on the middle and lower-class, and increasing taxes on the upper-class to make up the short-term difference, as I believe since we are so materialistic these days, demand fo sho drives upper-class/corporate wealth.
 

Incoherent

Cool story, bro.

[p1k3]

The general idea behind QE is that the the Federal Reserve will inject liquidity into the markets, not to help employment directly, but to cause asset appreciation. With the Dow at 16,000, the Fed is betting that “the wealth effect” will ripple into the general economy, helping to improve tax receipts and eventually pay down the national debt.   

For some reason I feel like this isn't going to work.

Also, that statement is blatantly inaccurate.

Uh. Wut.

Ben himself said that the goal of QE would be to reduce the cost of borrowing money for corporations, bring down mortgage rates even further and potentially boost the stock market, increasing wealth effects for consumers to spur more spending.

Moving past the obvious fallacies in your original statement and your apparent complete misunderstanding of the role of the federal reserve, I have one question for you, are you a supply-sider?

My understanding of QE/the Fed is based on statements from Ben Bernanke

Job creation is on the government
 

These two statements are mind blowing.

[p1k3]

The general idea behind QE is that the the Federal Reserve will inject liquidity into the markets, not to help employment directly, but to cause asset appreciation. With the Dow at 16,000, the Fed is betting that “the wealth effect” will ripple into the general economy, helping to improve tax receipts and eventually pay down the national debt.   

For some reason I feel like this isn't going to work.

Also, that statement is blatantly inaccurate.

Uh. Wut.

Ben himself said that the goal of QE would be to reduce the cost of borrowing money for corporations, bring down mortgage rates even further and potentially boost the stock market, increasing wealth effects for consumers to spur more spending.

Borrowing money is the problem. Not the solution.

The Fed doesn't borrow money; it creates it, literally, with QE and eventually the purchased debt matures again.

Yeah I know. The people that borrow from the Fed's created money is the problem.

[mortons toe]

The general idea behind QE is that the the Federal Reserve will inject liquidity into the markets, not to help employment directly, but to cause asset appreciation. With the Dow at 16,000, the Fed is betting that “the wealth effect” will ripple into the general economy, helping to improve tax receipts and eventually pay down the national debt.   

For some reason I feel like this isn't going to work.

Also, that statement is blatantly inaccurate.

Uh. Wut.

Ben himself said that the goal of QE would be to reduce the cost of borrowing money for corporations, bring down mortgage rates even further and potentially boost the stock market, increasing wealth effects for consumers to spur more spending.

Moving past the obvious fallacies in your original statement and your apparent complete misunderstanding of the role of the federal reserve, I have one question for you, are you a supply-sider?

My understanding of QE/the Fed is based on statements from Ben Bernanke

educate yourself...

[EMAWican]

   I understand how the Fed works.  I was just commenting on how unlimited QE is supposed to work in theory based on statements by the Fed. My original statement was supposed to clarify that QE is not a cure-all to all economy issues, but it specifically addresses certain issues the Fed deems "important".  Job creation is not one of those important aspects initially; the Fed feels that job creation hinges more with the government/private sector and that isn't their job.   

[p1k3]

Job creation is not one of those important aspects initially; the Fed feels that job creation hinges more with the government/private sector and that isn't their job.   

This is false. The Fed's dual mandate reads:

"The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy's long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices and moderate long-term interest rates."

http://www.chicagofed.org/webpages/publications/speeches/our_dual_mandate.cfm


Bernanke thinks he can achieve all the above by printing endless amounts of money, but he clearly has no clue what he's doing. Any jobs that are created are with temporary/fake wealth that is mal investment. Those jobs will go when the economy crashes again.

[Stupid Fitz]

The general idea behind QE is that the the Federal Reserve will inject liquidity into the markets, not to help employment directly, but to cause asset appreciation. With the Dow at 16,000, the Fed is betting that “the wealth effect” will ripple into the general economy, helping to improve tax receipts and eventually pay down the national debt.   

For some reason I feel like this isn't going to work.

Also, that statement is blatantly inaccurate.

Uh. Wut.

Ben himself said that the goal of QE would be to reduce the cost of borrowing money for corporations, bring down mortgage rates even further and potentially boost the stock market, increasing wealth effects for consumers to spur more spending.

Moving past the obvious fallacies in your original statement and your apparent complete misunderstanding of the role of the federal reserve, I have one question for you, are you a supply-sider?

My understanding of QE/the Fed is based on statements from Ben Bernanke, and I didn't realize that statements made by the policy makers are "obvious fallacies".  It might differ from my personal opinion or those of others, but many people think that QE is supposed to immediately/directly produce private jobs-that is not the case.  Job creation is on the government, and since this is the first time that we have had unlimited QE ("get the eff outta of my" - Ben B), it will be interesting to see if the trickle-down theory works.  I know I like this idea a whole lot better than the flash in the pan mass mailing of checks to stimulate the economy.

And no, I am for lowering taxes on the middle and lower-class, and increasing taxes on the upper-class to make up the short-term difference, as I believe since we are so materialistic these days, demand fo sho drives upper-class/corporate wealth.



 

Holy crap.  There really are people out there that think this.  This terrifies me.