Mathew said to Peter "My pocket is full of shit and I have nothing to eat"
Peter said to Mathew "do not fear my son, for I can take the shit from you pocket and turn it into paper money which can be spent or invested in anyway you choose"
Mathew replied "thankyou Peter. I have made use of your money and I am now rich. But what happened to the shit in my pocket?"
Peter replied "It has been placed on ice in a giant freezer called the "reserve" and it shall remain on ice forever or until it thaws and stinks out the entire planet"
There is no such thing as a free lunch, somebody has to pay for it.
QE simply means that those that create the goods and services, those that pay taxes. Have their money taken from them to keep failed financiers afloat.
Beyond a short term stabilizing of the market it simply becomes systemic robbery.
There is no such thing as a free lunch, somebody has to pay for it.
QE simply means that those that create the goods and services, those that pay taxes. Have their money taken from them to keep failed financiers afloat.
Beyond a short term stabilizing of the market it simply becomes systemic robbery.
Indeed. And one can always spot the thieves as those who rush to it's defence.
“Talk sense to a fool and he calls you foolish.” - Euripides
There is no such thing as a free lunch, somebody has to pay for it.
QE simply means that those that create the goods and services, those that pay taxes. Have their money taken from them to keep failed financiers afloat.
Beyond a short term stabilizing of the market it simply becomes systemic robbery.
Presumably some special Wulfie secrete stuff is involved to enable you to come up with that idea? You know, the kind of things that only you know about.
peter fraser
5 Sep 2015, 03:11 PM
More religious doctrine.
Presumably the faithful need to believe QE is money printing and Gold will go to the moon??
In my mind, a central bank buys all of the shit that nobody else really wants. This increases the demand on the shit that nobody else wants and forces up the price (and reduces the yield).
The people who sold the shit now have more money, the central bank that bought the shit now have more shit.
The people who now have money instead of shit, try and chase yield. So they invest in anything that offers yield.
So they pump their recently exchanged "shit for money" into stocks, carry trades, property.
And up they go like a balloon.
Puff puff.
But (correct me if I am wrong), wasn't a proportion of every dollar pumped into the balloon once a piece of shit that someone was trying to get rid of?
Hasn't every piece of shit bought by a central bank. ended up inflating a market somewhere or another?
Has an unpayable mortgage from 2006 been pumped into the ASX or the DOW? If so, where does it end?
Can anyone on here give me an example of where QE has worked in the past?
It is money printing, just not in the strict definition of the word.
Please explain so that your meaning can be understood.
Most of us here believe QE is a swap where a form of money is replaced by another form of money. QE introduces almost zero new buying power into the economy.
Please explain so that your meaning can be understood.
Most of us here believe QE is a swap where a form of money is replaced by another form of money. QE introduces almost zero new buying power into the economy.
So what? It provides a framework by which financial institutions can lend to the public to maintain the status quo. It requires govt and institutional manipulation and collusion for it to work. Also, it continues to punish those who need to exchange the most effort for savings while rewarding those who are part of an establishment that establishes the rules in the first place. That's why people say it is "money printing", even if it doesn't fit strict descriptions by those who say QE isn't money printing or expansion of the money supply.
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