Archive for the Deflation Category

Quantitative Easing = Money Printing (January 19, 2015)

Posted in Deflation, Economics, Federal Reserve, Inflation, INFORM Act, Money, Quantitative Easing on January 19, 2015 by e-commentary.org

. . .

A          “‘Quantitative Easing’ sounds so academic and antiseptic and . . . surely sound.”

B          “And nebulous enough to fool a frightened public that does sense that something is wrong.”

A          “When you cannot do anything positive and you feel a compulsion to do something, should you do something negative?”

B          “It is doing something.”

. . .

A          “The Federal Reserve has been ‘printing’ more money and passing it to the wealthy for a half-dozen years.  The money is not making a demand on resources right now, so there is no systemic inflation yet other than rises in the prices of basic necessities.  The general public does not have enough money to make substantial demands on resources, so some prices are even heading down.  The Federal Reserve ‘electrons’ are driving up the stock market and leading some to conclude that all is good in the land.  When the money meanders into the economy and begins to make demands on resources that also may be in short supply, prices will go up.”

B          “Limited deflation then inflation if not hyperinflation.  Coming to a nation near you.”

. . .

A          “When someone discovers that printing money is the problem, how will the Federal Reserve react?”

B          “‘Print’ more money.”

. . .

[See the “Intergenerational Financial Obligations Reform Act” (INFORM Act) discussed at http://www.theinpformact.org/.]

Bumper stickers of the week:

Quantitative Easing:  Coming (Back) To A Nation Near You

Quantitative Easing 4 = Money Printing (4th Edition) ?

Print, baby, print