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German Finance Minister criticizes QE2

CaptHenwayCaptHenway Posts: 32,120 ✭✭✭✭✭
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Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.

Comments

  • derrybderryb Posts: 36,793 ✭✭✭✭✭
    "undermines the credibility of the U.S."

    Sorry, but the US's credibility was undermined last time around. That is the reason tax payers are now being forced to loan their own government more money. Our previous creditors no longer want a piece of the Ponzi action.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • DeutscherGeistDeutscherGeist Posts: 2,990 ✭✭✭✭
    Keep in mind where the German bias lies. They have gone through a period of hyperinflation in the early 1920's, which eventually eroded their democracy and set the stage for a dictatorship. Anything that points to hyperinflation, the Germans avoid even though most Germans today are not eye witnesses from that bygone era. So, quantitative easing is bad word in the German narrative. While QE is a device that may help in certain situations, the Germans have relied on yet other mechanisms and have done quite well relatively speaking. Their unemployment has never been this low in decades and their growth rate is also higher than recent memory. The fact that China pushed Germany down to fourth place in economic power and 2nd in world exports has more to do with the thriving Chinese economy that any shortfall the Germans had or have.

    Socialististic practices helped Germany in this round, not QE. They did not do stimulus plans, what they did was subsidize employers not to lay off any workers. The workers worked less hours, but still got most of their earnings. The hours that they did not work were spent in retraining or to update skills within their field. When China suddenly demanded products, the Germans were already set up to expand and fulfill orders on the spot. The USA had already trimmed their workforce and were not ready to fulfill those factory orders immediately. With all these car companies that went belly up such as Saturn, Pontiac, etc... it just opened the market share wide for the German automakers to fill in.
    "So many of our DREAMS at first seem impossible, then they seem improbable, and then, when we SUMMON THE WILL they soon become INEVITABLE "- Christopher Reeve

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  • BearBear Posts: 18,953 ✭✭✭
    Screw the Kaiser and his Finance Minister.It's every Nation for itself.
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  • JustacommemanJustacommeman Posts: 22,847 ✭✭✭✭✭
    I can see how it would upset them and why they are sensitive. It makes the Deutshe Mark, er I mean the Euro even stronger against the dollar. MJ
    Walker Proof Digital Album
    Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
  • MsMorrisineMsMorrisine Posts: 33,025 ✭✭✭✭✭


    << <i>"undermines the credibility of the U.S."

    Sorry, but the US's credibility was undermined last time around. That is the reason tax payers are now being forced to loan their own government more money. Our previous creditors no longer want a piece of the Ponzi action. >>



    Some months ago, the Chinese snickered at Timmy's efforts to reassure them about America's sound debt.

    I thought people were waking up to America's debt problems long ago.


    But, I guess the QE aspects of it can seem unfair if you are just going to be paid back with newly printed money. Who better to warn of printing money to the point of needing a wheelbarrow full of it to buy bread than the Germans? imageimage


    Ah well, I guess we won't be hearing Timmy exclaim: "We have no debt! We can print money!" any time soon.

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  • MsMorrisineMsMorrisine Posts: 33,025 ✭✭✭✭✭


    << <i>I can see how it would upset them and why they are sensitive. It makes the Deutshe Mark, er I mean the Euro even stronger against the dollar. MJ >>



    Did you see the euro/dollar fall on Friday? Do you think that was profit taking or a correction?
    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
  • JustacommemanJustacommeman Posts: 22,847 ✭✭✭✭✭


    << <i>

    << <i>I can see how it would upset them and why they are sensitive. It makes the Deutshe Mark, er I mean the Euro even stronger against the dollar. MJ >>



    Did you see the euro/dollar fall on Friday? Do you think that was profit taking or a correction? >>



    It fell precisely when the new jobs number came it hotter then expected. The euro was up in the session until then, The oddity is that all other currencies had good to decent day against the greenback. To answer your question, some took profit and others just stayed out of the way. MJ
    Walker Proof Digital Album
    Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
  • calleochocalleocho Posts: 1,569 ✭✭
    The Euro has its own set of problems ...
    "Women should be obscene and not heard. "
    Groucho Marx
  • JustacommemanJustacommeman Posts: 22,847 ✭✭✭✭✭


    << <i>The Euro has its own set of problems ... >>



    Yes it certaintly does. The Euro is ugly in it's own right, just not as homely as the dollar. MJ
    Walker Proof Digital Album
    Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
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