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Quantative Easing

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posted on May, 17 2013 @ 03:09 PM
The Bank of England have been pumping billions into the financial system in order to stimulate the economy. The idea being that they have made more money available for banks to lend to small businesses, mortgage applicants and personal loans.

However, this has had little impact as banks are still reluctant to free up this money and instead, by what I can tell, have decided to squirrel it away.

So, instead of printing the cash and handing it over only for it to be storied away in these financial institutions vaults, why don't they just print the money and pay off the national debt? Then we can lower taxes, allowing people to spend their increase in disposable income and aid recovery of the economy. Surely this will be a win win situation?

There is probably a flaw in this logic, so if someone can explain why this cannot happen, that would be much appreciated.

posted on May, 17 2013 @ 03:31 PM
Its like putting a band-aid on a gunshot wound.
Only this is a Godzilla sized beast with dozens of bullet holes.

posted on May, 17 2013 @ 03:40 PM
reply to post by shaneslaughta

What is? Printing the money to pay off the national debt or giving the money to the banks? I would certainly agree with giving the money to the banks is futile. It hasn't worked, let's not try it again.

posted on May, 17 2013 @ 04:09 PM
reply to post by Cobaltic1978

You forget to mention that quantitative easing is a invisible taxation as it increases money in circulation but devalues the money. Money value decreases under a policy of quantitative easing, it causes inflation, may increase exports (due to lower cost to buyers), and may decrease imports (due to increase of cost as the curacy depreciates), the only beneficiary in a short time frame are speculators in non-local currency items, shares, futures and other currencies that are not engaging in the same policy (at a cost to their own export economies, that is why it is part of economic/currency war).

Quantitative easing has a short term capability of being useful and the examples we are witnessing are mostly illogical and destroy the middle class, the section of society that funds social stability...

Then there is the issue of a debt riddled nation, ATS had a very good video about Japan some time ago that explained the problem very well. There is a point of equilibrium between the the capacity to get external funding and the capacity to pay the debt that is extremely connected with the ratio of inflation.

It is all smoke and mirrors now, the plan seems keep it up as to let largest number of people get into the in the same sinking ship, the goal is to obtain a mutual assured commensuration of a dreaded reality. The system must fail to a majority as to avoid generating outcasts...
edit on 17-5-2013 by Panic2k11 because: (no reason given)

posted on May, 17 2013 @ 06:25 PM
nice to read the conservitve goverment has borrowed £200+ billion MORE than planned .

and only paid down the debt by 50 billion on top of all the cuts to welfare where is all this money going ??

they have only done about 20+ % of planned cuts to services and welfare planned this is going to get ugly

posted on May, 17 2013 @ 07:35 PM
It's a completely criminal, vicious and moronic cycle. The emperor HAS NO CLOTHES ON, PEOPLE!

This is a healthy market...

Quantitive easing does not result in a healthy market. The result is a criminally manipulated and pillaged one. It is a ponzi scheme at its worst!

"But the markets are UP bro!"

Yes, the stock market is up ONLY BECAUSE OF THE DEBT ISSUANCE THAT WE NOW OWE, THAT YOU HAVE TO PAY FOR, PLUS INTEREST. It's on us. We are the debtor.

Central banks are printing money and then issuing it only to the primary dealers. All this new money is being issued directly to the mega-banks. This is conspiracy and robbery at its pinnacle!

But then who is buying the bonds you say? The Primary Dealers! Who are they selling the bonds to?...Ah, the central banks! How does the Fed pay for all these trillions of purchases? It just prints even more money, credits it directly to the Primary Dealers and they have nothing else to do with it but INVEST IN STOCKS.

Ponzi schemes can only go in two directions. Expand or implode. Watch out below.
edit on 17-5-2013 by METACOMET because: (no reason given)

posted on May, 18 2013 @ 06:02 PM
From what I gather, the QE has resulted in a rise in stock prices and bonds as the banks use the money to invest and make money in the stock market.
So-called experts are saying how low inflation is, and using this as an excuse to print more money thus making the problem worse.
But the problem is, the reason why inflation is relatively low is because all this money is floating around in the stock market and so the inflation is only really seen in there. Just look how high the stock market is.
The real problem is when the real crash comes and all this money suddenly floods into the economy like a tsunami.
Thats when the true damage of QE will rear its ugly head, after its far too late.

posted on May, 19 2013 @ 07:57 AM
The only reason inflation has not risen in the US is because food and fuel were removed from the index. The FED's excuse is mainly a paper exercise and rooted in theory-in other words keeping interest rates low and providing investment capitol to the banks, in order to stimulate business growth, works great in a textbook in a class, however in real life that exerciser fails to include greed and cash hording, which the banks are doing now.

The policy of media control also plays into this theory as if you tell people how great everything is enough times some will be foolish enough to believe it. How else could you explain college educated people borrowing money to buy a public offering of something as silly as Facebook. The media push was out of this world to get people to invest in this toilet flush that has no where to go but down.

The false economic recovery of the Reich from 1933-1939 was based on these same principals. You control the media, flush the system with cash, with the thinking that war will bring inflation down by popular nationalistic support to aid the collected good with increased effort, and most importantly, a greater amount of suffering and materialistic reduction among the populous.

In America what the media can't control is the never ending advertisements of court ordered, bankruptcy auctions of property and failed business assets and seeing long term investors gobble these up at pennies on the dollar. Who are these long term investors? Why the banks of course-the ones who made the bad loans in the first place. This cycle shows how little control the government and the Federal Reserve have over the mess they created by flushing the system with cash.

posted on May, 19 2013 @ 09:22 AM
This is a practice that started in Japan after the Market collapse in 2008 and have been going around and adopted by the rest of the big world nations after that.

Already Japan have about 9 instances of QEs, In the US is to become infinitive, because now the Governments are finding out that once you start this trend to keep the big banking system from collapsing, is not way to end the give away.

posted on May, 19 2013 @ 10:19 AM

Originally posted by billdadobbie
nice to read the conservitve goverment has borrowed £200+ billion MORE than planned .

and only paid down the debt by 50 billion on top of all the cuts to welfare where is all this money going ??

they have only done about 20+ % of planned cuts to services and welfare planned this is going to get ugly

They haven't paid down the nations overall Debt by a single penny. At best they have reduced the Deficit.

When you understand the difference you realise how screwed we are and why no politician ever talks about the Debt.

The 'Coalition Cuts' are in fact so small as to be insignificant. Cuts in our bloated state to an extent that would have an effect are politically untenable by any party.

All they are meant to accomplish is keep the bond market focused on weakness elsewhere so we get to stumble on for a little longer.

posted on May, 19 2013 @ 10:32 AM
reply to post by Cobaltic1978

Actually, the Fed is considering something like what you suggested at this very moment. Here is an interesting article from the WSJ, 4 days ago, about Overt Monetary Finance and Helicopter Money:

Overt Monetary Finance & Helicopter Money

edit on 19-5-2013 by TheLongKhan because: (no reason given)

posted on May, 19 2013 @ 10:55 AM
This is short term gain long term devastation.

The market is up because feds r buying mtg bak ecurity to prop up the market. Once they pull the money and they will eventually have to. We will see devastation in the markets. China Russia not longer trust our system n no longer buying t bills, so the Feds have to artificially pump their own money which will be charge to the tax payers. We can't pay this money back so they will confiscate ur savings n pension funds like Cyprus.

This is a NWO scam to imploding the economy a 2nd time.

posted on May, 20 2013 @ 07:24 AM
The US market is due for a huge correction. It could happen anytime and, just like last time, the traders and their short positions will result in huge profits. The only difference is this time they are betting 'helicopter money' instead of real assets.

The changes to the traders naked short selling-pump and dump schemes in the Simpson-Bowles Act are being totally ignored as banks take up positions to solidify their huge cash hordes. The worlds largest banks will never again be caught in the position they were in 2007. They got burned because some actually cared about the plight of the American people however a Stalinist purge of top management has forever eliminated any kind of one for all and all for one thinking.

When the bubble burst this time the Banks will not be humiliated by having to borrow money from the US Government-who had to borrow it from the Chinese government. They will be the ones who make the loans.

posted on May, 20 2013 @ 07:52 AM

Originally posted by spooky24
When the bubble burst this time the Banks will not be humiliated by having to borrow money from the US Government-who had to borrow it from the Chinese government. They will be the ones who make the loans.

When the bubble bursts this time ponzi paper is not going to float the banks or anybody else.

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