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How will this be inflationary unless the 40 billion per month becomes money that is spent?
Not sure why the doom and gloom?
Couldn't have said it better myself.They tell you monetary stimulus, or easing of restrictions, or easing of corporate taxation will create a more friendly environment for businesses to start hiring again. They've (big business) virtually got everything they wanted. So, where are all the jobs? They're not there because the wealthy never intended on hiring people or creating a strong employment environment. Their intentions were solely to create an environment were they can profit as much as possible (also known as capitalism).It's like this argument that any form of wealth redistribution is horrible. When in fact wealth redistribution isn't the issue, wealth hoarding is. Just look at the overgrowing wealth gap between the rich and poor. You wonder why the economy isn't rebounding? Nobody has money anymore to buy products because damn near 25% of the population is unemployed.It isn't hard to figure out what the problem is. The ultra wealthy just won't advertise it because it's in direct opposition of their own interests. This isn't an issue that will self correct over time, anybody who really believes that is truly delusional.
Originally posted by tinfoilman
reply to post by surrealist
Everyone knows they won't be able to get their hands on any of that money. Therefore it can't cause hyperinflation.
All it is, is crap book keeping to make it look like the stock market hasn't crashed. The idea is to buy crap assets off the banks. Then the banks can loan money again and people can start buying again right?
But there's just one problem. Nobody has a job and everyone is already in debt. There's not enough people to borrow to cause hyperinflation. The money will just get invested in the stock market and create a big old artificial rally, then it'll just sit around in rich old people's bank accounts or something. The poor will never see it.
If anything causes inflation it'll be that nobody wants to buy oil using US Dollars anymore. That's the real concern.
QE3 isn't what's going to kill our economy. QE3 is the life support for an economy that's already dead. What they're worried about is deflation because nobody is buying crap.
Like I said, it'll probably cause wackyflation. Things old rich people buy will probably go way up in price. Things everyone buys like oil and food will probably go up somewhat in price. But they won't hyperinflate because the people just don't have enough cash in their pockets to make that happen.
Things nobody needs like new cars or computers may even come down in price. But eventually, if the economy doesn't start growing again I can't say what'll happen. Too many possibilities. Probably random sporadic riots or something as people get hungry.
The Fed 's pledge Thursday to buy $40 billion of mortgage securities a month until the economy improves comes a week after the European Central Bank announced its most ambitious plan yet to ease Europe's financial crisis by buying unlimited amounts of government bonds to help countries manage their debts..
A mortgage-backed security (MBS) is an asset-backed security that represents a claim on the cash flows from mortgage loans through a process known as securitization.
Agreed. The punishment or criticizm is the same be it 1 trillion or 16 trillion just the way a robbery is a robbery/theft be it a toilet paper or expensive jewelry from a department store. I wonder if we will ever see the money come back to us that was sent to EU for the bailouts.
Originally posted by Wrabbit2000
40 billion a month... Ahh yes... another Half trillion added to the debt. Why not... We're already so deep in the septic tank, another bucket of turds thrown into the mix really doesn't change much either way but perhaps accelerate the fall a bit.
This is getting comical, even with the tragic reality of it.
Originally posted by PatrickGarrow17
At some point, the proposed solution is going to be a standardized global currency regulated by an international body.
Originally posted by xstealth
this is insane...
This is our economy on life support, it's only a matter of time before they pull the plug.