Quantitative Easing Explained

cawacko

cawacko

Well-known member
Damn this just buries the Fed. Great video.

[ame="http://www.youtube.com/watch?v=PTUY16CkS-k&feature=player_embedded#"]YouTube - Quantitative Easing Explained[/ame]
 
Deflation doesn't only mean that prices go down. It also means that wages go down, or unemployment goes up. There hasn't been a healthy economic period in a modern nation which was undergoing deflation. Japan had it during their lost decade, and we had it during the great depression at extraordinary rates of 10%+ a year. The logic that "prices go down, therefore it's good FOR TEH PEOPLEZ" that these people embrace just paints them as the economic novices that the are. They think they're saying something profound when they're just cranks reinventing old errors.
 
So then they go on to defeat the CPI by inventing a basket of prices containing fuel + food + stocks, state that these prices are going up, and therefore there is no deflation. Give these guys a Nobel prize.
 
Yeah, because business experience = excellent fed chairman. That's why G. William Miller, the only fed chairmen ever to come from a corporate background, is remembered so fondly.

Then they go on to state that Bernanke is not qualified because he's not a politician. At this point I stopped listening.
 
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Watermarx said:
Yeah, because business experience = excellent fed chairman. That's why G. William Miller, the only fed chairmen ever to come from a corporate background, is remembered so fondly.

Then they go on to state that he's not qualified because he's not a politician. At this point I stopped listening.
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That part made zero sense.
 
Watermarx said:
Deflation doesn't only mean that prices go down. It also means that wages go down, or unemployment goes up. There hasn't been a healthy economic period in a modern nation which was undergoing deflation. Japan had it during their lost decade, and we had it during the great depression at extraordinary rates of 10%+ a year. The logic that "prices go down, therefore it's good FOR TEH PEOPLEZ" that these people embrace just paints them as the economic novices that the are. They think they're saying something profound when they're just cranks reinventing old errors.
Click to expand...

Wrong. The fed is an elitist body who hates it regular people can buy stuff. They prefer inflation and rising prices to give the appearance of a growing market and healthy competition, and bifurcating society even further by magnifying the importance of placement in the money flow pyramid. AKA, they like printing money for themselves and their friends, and making everyone else poorer relatively, increasing their power.
 
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