Quantitative easing?
leothelyon
Posts: 8,458 ✭✭✭✭✭
Monetary stimulus, monetary accommodation, quantitative easing.........however you want to call it.........how can it do anyone any good if all the world economies are failing around us as well?
The central bank buys whatever from the other banks to boost funds for money lending but if there's no-one to buy the products, why would any company borrow money to hire more employees to put out more products when there is no increase demand for our products.
IMO, I think Europe, Asia will need to get their acts together before any new QE3 in started again. What you say?
Doesn't make a lot of sense to me otherwise.
Leo
The central bank buys whatever from the other banks to boost funds for money lending but if there's no-one to buy the products, why would any company borrow money to hire more employees to put out more products when there is no increase demand for our products.
IMO, I think Europe, Asia will need to get their acts together before any new QE3 in started again. What you say?
Doesn't make a lot of sense to me otherwise.
Leo
The more qualities observed in a coin, the more desirable that coin becomes!
My Jefferson Nickel Collection
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I know not much about what you speak but a few things that popped in my mind are...
I have read that if/when the USA does it's "correction", more than likely, the entire planet will feel the effects.
I can not speak on "central banks" buying "whatever" from the "other" banks... Oddly enough though... I see store parking lots full, I see amusement parks full, I even just recently visited Disney in Florida and I tell you... I'm not sure the economy is doing as bad as people hype it to be.
As for "product demand".... Are you talking about widgets or doohickeys? We really can't speak on vague assumptions.
QE3? What you say.... I say, what is QE3?
Your whole comment doesn't make much sense to me... Sorry.
Ray
(Edited to correct my illiteracy/lack of being able to spell.... and not proof reading...lol).
Knowledge is the enemy of fear
<< <i>Debt destruction, not currency creation, is the answer. >>
Debt is destroying the currency
"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
<< <i> if all the world economies are failing around us as well
>>
Premise above not accepted. Words "ALL" , "Economies", and "Failing" not matching understood definitions. No comment possible.
Liberty: Parent of Science & Industry
<< <i>
<< <i> if all the world economies are failing around us as well
>>
Premise above not accepted. Words "ALL" , "Economies", and "Failing" not matching understood definitions. No comment possible. >>
Where is that "Like" button?
lol
How do you destroy debt? Ah, by having taxpayers pay it off. Nice touch, unless you happen to be a taxpayer. Alternative - monetize it. Nice touch, unless you happen to be a wage earner or a saver.
Any other "method" is just smoke and mirrors.
I knew it would happen.
<< <i>Debt destruction, not currency creation, is the answer.
How do you destroy debt? Ah, by having taxpayers pay it off. Nice touch, unless you happen to be a taxpayer. Alternative - monetize it. Nice touch, unless you happen to be a wage earner or a saver.
Any other "method" is just smoke and mirrors. >>
AMEN BROTHER !!
<< <i>Debt destruction, not currency creation, is the answer.
How do you destroy debt? Ah, by having taxpayers pay it off. Nice touch, unless you happen to be a taxpayer. Alternative - monetize it. Nice touch, unless you happen to be a wage earner or a saver.
Any other "method" is just smoke and mirrors. >>
How about the acceptance of failure. Oops, failure is a politically incorrect word. We must fix ourselves of we want to fix govt.
Knowledge is the enemy of fear
Well, I believe that the place to start would be to start calling a spade a spade and to stop sugar-coating stupidity to satisfy political correctness.
To wit, corruption in government should carry significant penalties, both personal and financial. Then, the same standards should be applied to other large organizations, both public and private.
It's not hard to figure out, just hard to implement. Politics always has a way of making the truth hard to discern, depending on whose ox is being gored.
One thing I can say without reservation - purchasing of insurance should be allowed across state lines. The fact that such a thing has never been allowed is a testament to the level of corruption and the revolving doors between big business and big government. And to be fair, big unions have the same arrangement.
Local control for most types of organizations seems to have some benefits, simply because we can still get our hands on the local scoundrels if we want to get in their faces.
<sorry for the disjointed rant>
I knew it would happen.
<< <i>
<< <i>Debt destruction, not currency creation, is the answer. >>
Debt is destroying the currency >>
Amen!
<< <i>How do you destroy debt? >>
In the case of soverign debt, by cutting your losses in the present with the least painful method possible. As we are witnessing, pushing debt to the future only creates a greater debt.
A reasonable debtor can successfully commit future revenues to current debt because he holds a personal stake in the success of debt reduction. Soverign indebtedness is created by and expanded by unreasonable players who have no personal skin in the game. Soverign debt can be solved with balanced budgets that are strictly adhered to.
"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
Furthermore I read a declining US economy would offset any easing and rate cuts from abroad.
But anyway, I was up 6 am this morning to catch all the breaking news on Market-Watch and PMs take another nosedive when the central banks announced their rate cuts. I was waving my arms upward, go up you dumb basteeds, go up! All because the dollar got stronger?
Hopefully this is just a kneejerk reation and we'll see a big jump Friday, right?
Good grief! I had to go back and add a hyphen in Market-watch because there's a dirty little word in there.
The more qualities observed in a coin, the more desirable that coin becomes!
My Jefferson Nickel Collection
<< <i>... I was waving my arms upward, go up you dumb basteeds, go up!... >>
What is your desire for PMs going up? Do you sell when it goes up, or still hold?
QE3 around Q4...
<< <i>
<< <i>... I was waving my arms upward, go up you dumb basteeds, go up!... >>
What is your desire for PMs going up? Do you sell when it goes up, or still hold?
QE3 around Q4... >>
I try to make it an educated one but I'm batting .333 at the moment.
The more qualities observed in a coin, the more desirable that coin becomes!
My Jefferson Nickel Collection
The Obama team may or may not put the squeze on Ben but its a no win situation for the current administration either way.
"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
<< <i>Panama's economy is booming. >>
why is there economy booming? or do we really want to know why?