The analogy I would use is QE is a Placebo a doctor gives a sick patient.
The Doctor knows he is out of medicine, so this is the only action he can take. The Doctor is relying on the patient's ignorance, so that if the mind feels better, the body will feel better. A confidence trick.
It may well work.
The real issue is if the patient ever works out that the Doctor has not been helping at all, and he really does not have any answers or remedies. What will happen to the Doctor-Patient relationship? All hell may break loose.
I think it is more like an intravenous drip. It keeps the circulation going and stops the patient from dying without addressing the actual illness.
With luck, the patient will get better by itself or the doctor who has the appropriate treatment (Congress/executive with appropriate fiscal policy) will show up and administer aid.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
The analogy I would use is QE is a Placebo a doctor gives a sick patient.
The Doctor knows he is out of medicine, so this is the only action he can take. The Doctor is relying on the patient's ignorance, so that if the mind feels better, the body will feel better. A confidence trick.
It may well work.
The real issue is if the patient ever works out that the Doctor has not been helping at all, and he really does not have any answers or remedies. What will happen to the Doctor-Patient relationship? All hell may break loose.
I think it is more like an intravenous drip. It keeps the circulation going and stops the patient from dying without addressing the actual illness.
With luck, the patient will get better by itself or the doctor who has the appropriate treatment (Congress/executive with appropriate fiscal policy) will show up and administer aid.
The continue with the analogy...
The appropriate doctor has a huge stash of drugs which can fix the patient very quickly. But to administer the drugs, the appropriate doctor has to write a prescription on a piece of paper - and the medical board has restricted him from doing that, because one day, they may run out of paper.
The appropriate doctor has a huge stash of drugs which can fix the patient very quickly. But to administer the drugs, the appropriate doctor has to write a prescription on a piece of paper - and the medical board has restricted him from doing that, because one day, they may run out of paper.
If chin scratch was a doctor,
it could the write as many prescription as it like.
The appropriate doctor has a huge stash of drugs which can fix the patient very quickly. But to administer the drugs, the appropriate doctor has to write a prescription on a piece of paper - and the medical board has restricted him from doing that, because one day, they may run out of paper.
In the meantime, the patient's family is worried sick because they variously fear that:
a) The world will run out of salt and water to make saline drips; or
b) The patient will explode from all that saline drip despite the fact that its blood pressure is stable and low and the patient has not gained weight.
or both.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
No, it was to supposed to be more a reality wake up call if you are referring to Peter reguarding the US economy.
But dont let the facts get in the way of a good story right herbie
Well, I actually feel I 'know' Peter a bit. 'N actually even 'know' me ole mate Shady 'a bit' - Through having crossed swords with him more than once over the years ...
So it was more them ('n the world in general?) I was asking if YOU might be a bit of a 'hard head' Ted? (Though Yep, I worded it pretty poorly obviously.)
A Professional Demographer to an amateur demographer:"negative natural increase will never outweigh the positive net migration"
The appropriate doctor has a huge stash of drugs which can fix the patient very quickly. But to administer the drugs, the appropriate doctor has to write a prescription on a piece of paper - and the medical board has restricted him from doing that, because one day, they may run out of paper.
If chin scratch was a doctor,
it could the write as many prescription as it like.
Because it can.
And mouse would all get well.
The prescriptions (USD) are not the cure nor are they the constraint. The medicine (real potential output) is cure and the potential the constraint. But we can not get the medicine (potential output) without the precription (USD).
The analogy I would use is QE is a Placebo a doctor gives a sick patient.
The Doctor knows he is out of medicine, so this is the only action he can take. The Doctor is relying on the patient's ignorance, so that if the mind feels better, the body will feel better. A confidence trick.
It may well work.
The real issue is if the patient ever works out that the Doctor has not been helping at all, and he really does not have any answers or remedies. What will happen to the Doctor-Patient relationship? All hell may break loose.
The prescriptions (USD) are not the cure nor are they the constraint. The medicine (real potential output) is cure and the potential the constraint. But we can not get the medicine (potential output) without the precription (USD).
"You can take my answer to the bank. The answer to your question in general is yes, house prices will be cheaper in all capital cities in two years time,will also be cheaper in twelve months time and will probably be also cheaper in five years time" - Ted/Dave/MMM, January 2012
"Just so you know , in my old thread I had predicted that gold would break 2000 an ounce in 2012 and this was around the beggining of last year, no great prediction I know but thats not the point I will get to , somebody also asked when GOLD WOULD HIT $5,000 AN OUNCE , while I was reluctant to put a prediction on this , I responded with , If someone was to give me a million dollars today and said I had to place it all on one year that gold would reach 5,000 , I would place it on 2014 , now by this and to piss off any time wasting jiberers I mean that it would hit 5,000 sometime during 2014. Now I would never really put a prediction on such a thing but answered it as best I could , the point is that I dont know where it will be in 2014 or even the end of 2012 but I do know it will go up and up and up.
And here is my prediction for you , over the next year or so you will see the price of both gold and silver grow strongly , you will see more and more people lose there jobs and you will see australia in the mist of the biggest gold rush since the good old days , this should start to become obvious in another year or two. . You will see people start to rush gold mining towns and they will become bigger than the old days , prices of houses in these mining towns should see strong growth over the short term meaning 2 to 4 years , it to hard to say what will happen after that time at this stage .
So there you have it folks , australia will be in for a gold rush in the next year or so" - Ted/Dave/MMM, February 2012
You've got to admire Ted/danno/MMM/fulllvada/dave; he never hides his reincarnation.
Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.
Forum Rules:
The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.
Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.
Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.
This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.
Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ
Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy