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Quantitative easing?

leothelyonleothelyon 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 more qualities observed in a coin, the more desirable that coin becomes!

My Jefferson Nickel Collection

Comments

  • mrpaseomrpaseo Posts: 4,753 ✭✭✭
    I say buy Silver (That should keep the thread from getting zapped...lol or not).

    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).
  • cohodkcohodk Posts: 19,100 ✭✭✭✭✭
    Debt destruction, not currency creation, is the answer.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derrybderryb Posts: 36,791 ✭✭✭✭✭


    << <i>Debt destruction, not currency creation, is the answer. >>



    imageimage

    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

  • BaleyBaley Posts: 22,660 ✭✭✭✭✭


    << <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

  • DorkGirlDorkGirl Posts: 9,994 ✭✭✭
    Panama's economy is booming.
    Becky
  • mrpaseomrpaseo Posts: 4,753 ✭✭✭


    << <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
  • jmski52jmski52 Posts: 22,822 ✭✭✭✭✭
    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.
    Q: Are You Printing Money? Bernanke: Not Literally

    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 !!
    NumbersUsa, FairUs, Alipac, CapsWeb, and TeamAmericaPac
  • cohodkcohodk Posts: 19,100 ✭✭✭✭✭


    << <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.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • jmski52jmski52 Posts: 22,822 ✭✭✭✭✭
    How about the acceptance of failure. Oops, failure is a politically incorrect word. We must fix ourselves of we want to fix govt.

    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>image
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • VikingDudeVikingDude Posts: 1,342 ✭✭✭


    << <i>

    << <i>Debt destruction, not currency creation, is the answer. >>


    imageimage
    Debt is destroying the currency >>



    Amen!
  • derrybderryb Posts: 36,791 ✭✭✭✭✭


    << <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

  • leothelyonleothelyon Posts: 8,458 ✭✭✭✭✭
    I really had my hopes up with all this easing and bank rate cuts news ie; Europe, England, China and others that PMs would increase and not decrease.
    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. image

    The more qualities observed in a coin, the more desirable that coin becomes!

    My Jefferson Nickel Collection

  • tneigtneig Posts: 1,505 ✭✭✭


    << <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...
    COA
  • leothelyonleothelyon Posts: 8,458 ✭✭✭✭✭


    << <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

  • ECRI is claiming we are already in recession, if true I don't know if Ben will hold out until September before performing big drops of stimulus (aka QE3).

    The Obama team may or may not put the squeze on Ben but its a no win situation for the current administration either way.
    NumbersUsa, FairUs, Alipac, CapsWeb, and TeamAmericaPac
  • derrybderryb Posts: 36,791 ✭✭✭✭✭
    Jackson Hole announcement in August would be my guess.

    "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

  • johnny9434johnny9434 Posts: 28,304 ✭✭✭✭✭


    << <i>Panama's economy is booming. >>

    why is there economy booming? or do we really want to know why?
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