'Quantative Easing' is a damn interesting topic and one I think most people do not fully understand - myself included, I would love it if we could
have a really robust conversation on this subject and try and gain a weight of opinion as to the merits, negatives and associated conspiracy
I'd like to put a few thoughts and opinions out there but first will explain what 'quantative easing' is according to wiki:
Quantitative easing (QE) is a monetary policy used by some central banks to increase the supply of money by increasing the excess reserves of the
banking system, generally through buying of the central government's own bonds to stabilize or raise their prices and thereby lower long-term interest
rates. This policy is usually invoked when the normal methods to control the money supply have failed, i.e the bank interest rate, discount rate
and/or interbank interest rate are either at, or close to, zero.
I will describe it in my own words : a government authorises the country's central bank to print more currency that is backed by no tangible resource
such as gold or anything else of any value, to increase the supply of money into a country.
Since the global recession we have seen several countries use this tactic for reasons we will discuss later, the ones I know most about (would love to
hear about other countries too please) are the UK who have printed £200 billion worth of paper currency. The other is the USA who have printed $1.7
trillion worth of paper currency.
This activity has caused masses of differing opinions across the globe and comparisons with the activities of post World War Germany
who printed money in an attempt to meet their 'reparation' payments to the
Allies and caused hyperinflation to occur. It's result being a time when people would carry currency in wheelbarrows such was the lack of value and
prices could rise on a bread in the time it took to walk into a bakers pick up a loaf of bread and go to pay for it. Now we are not experiencing
'hyperinflation' in the Us or UK yet but the historic lesson is there to be learned. Most recently and somewhat ironically prior to the dawning of
modern day money printing by the Western world I used to take the piss out of Mugabe in Zimbabwe who also took to printing money in an attempt to
create wealth and money supply who caused hyperinflation in his country and scenes reminiscent of the Weimar Republic. Oh how silly I felt when my so
called educated governers in the UK started to print billions of pounds.
But (I hate when people start a sentence with but!) I could see some sense in controlled and measured attempts to increase money supply to kick start
the economy. A bit like CPR, the heart of the economy needed (needs?) a little massage sometimes to get it going when it stalls.
then our politicians announced more QE was needed and printed more money, then more again. today there is a suggestion to print even more!
and not only the UK but the states as well:
its recent programme of quantitative easing, the Bank has printed an extra £200 billion – and is tempted to keep going. Across the Atlantic, the
enthusiasm for QE is even greater. This month, the Federal Reserve created another $600 billion
I was dumbfounded. We are all living through the era of 'austerity' measures when governments are telling us massive cuts in spending are imperative
to balance the books and here they are just printing more money to get themselves out of a hole. I decided to look deeper at the reasons ehind why
they think this will work and have discovered it is all to do with creating inflation. True they do not want hyper inflation they want inflation so
that interest rates can be increased which as followers of many other NWO threads is in essence an invention of bankers used to increase their
The article linked above however approached this topic from a different slant and put the government into the same bracket as money counterfeiters and
alluded to criminal activity which I think is a fair point, please do read as it is an interesting perspective.
One of the comments left by readers UK_Debt_Slave leapt out to me and I thought it would be good to look at in full:
Wouldn't you just loved to have been in that committee meeting at the Bank of England when 'the thieves' got together to decide how to sell
counterfeitting to the people, eh? Once upon a time, when bankers clipped gold and silver coins and they got caught, they were executed. The US
Constitution includes the Coinage Act 1792 in which counterfeitting was a CAPITAL OFFENSE. .........DEATH Once upon a time, bankers and economists got
together and decided tey had to create a nice neutral word to describe their THEFT and FRAUD and they came up with the word INFLATION. They duped
people into the belief that inflation is 'rising prices' but they never explained that rising prices are a consequence of monetary debasement. When
bankers 'print' money, it is no diferent from the bankers of olden times clipping coins. It is the state sanctioned debasement of money and it is
THEFT, pure and simple. So when this engineered crisis broke in 2008, they must have known already that they would have to find a new way to sell
THEFT to the people. So those lovely charming bankers all got together and while they quaffed port and smoked cigars, some wretched piece of garbage
dreamed up QUANTATITIVE EASING as the 'new sales pitch' to fleece the people. How they must laugh whilst they # in our open mouths. They should be
strung up, every damned one of them.
It got me to thinking about the conspiracy aspect of QE, previously I just thought the government was at best being stupid and at worst effectively
gambling our immediate futures all on red.
There are plenty of anti QE thinkers out there who can explain the economic reasons against QE such as this chap speaking on Bloomberg today - Julian
Robertson CEO of Tiger Management LLC (an investment 'legend' according to many sources - whose opinions are well trackable over the last few years by
searching on Youtube)JR video
Before I lose the last few of you who have ploughed through my writing so far, I will stop to allow you to take a breath and start the discussion.
A few questions:
1. Are we in danger of hyperinflation any time soon?
2. Is $2.3 trillion of extra cash going to affect the economy detrimentally in the states? Is £200 billion pounds extra going to screw the UK with
too much extra cash?
3. How is this money filtered directly into the economy?
4. Does the man in the street benefit really or is this to move economic indicators that will benefit the economy in the long term?
5. Who is really benefiting here? What is the conspiracy if any...???
Your help appreciated in educating me and others. Lets get to the bottom of the real reasons why QE is being used bearing in mind the hideous historic
consequences we have seen with governments printing money!