Who ended Quantitative Easing, the cause of inflation?
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Into the Night
Verified User
No one ended quantitative easing.
The dollar has been devalued by 35% (so far) since Biden was installed.
The dollar has been devalued by 7.3% during the entirety of the Trump administration. (Source: Federal Reserve)
The dollar has been devalued by 35% (so far) since Biden was installed.
The dollar has been devalued by 7.3% during the entirety of the Trump administration. (Source: Federal Reserve)
Quantitative easing ended, and was replaced by quantitative tightening.
Into the Night
Verified User
Blatant lie.
In the real world, there was a bit of quantitative easing in 2020(when trump was president), but most of the quantitative easing ended a decade ago. There has been some selling, but most of the quantitative tightening has been from allowing bonds to mature.
Remember, with bonds, if you are now buying(at least buying through rollovers) then you are liquidating your holdings.
The reasons for quantitative easing are over. It is meant to get rid of deflation, when interest rates are near zero. There is no immediate danger of deflation, and interest rates are not near zero.
PostmodernProphet
fully immersed in faith..
what was there to ease?......inflation was under 2% under Trump.....I seem to remember that you make shit up every day of the week......
Into the Night
Verified User
The dollar was devalued by 7.3% under the four years of the Trump administration. It was devalued by 35% (so far) since Biden was installed.
The source is the Federal Reserve. I am not making up these numbers.
Dollar devaluation is not under control of the President. That is up to Congress.
Biden, however, WAS the direct cause of the oil shortage, spiking energy prices, at least until part of it was thrown out by a federal court.
Into the Night
Verified User
There is no 'quantitative tightening'. Inflation has been a part of the United States since FDR.
Deflation is not zero interest rates. Redefinition fallacy.
Inflation is not interest rates either.
No one said that deflation was zero interest rates, or that inflation is interest rates.
Normal monetary policy is to increase interest rates to decrease inflation, and to decrease interest rates to increase inflation. That is a bit of an oversimplification, but basically how it works.
The danger is when there is a danger of deflation, but interest rates are near zero. It is difficult to have negative interest rates, so the normal monetary policy cannot be used. One possible solution is quantitative easing. It has rarely been used, but it appears to be the best solution to the problem we found ourselves in during the Great Recession.
So quantitative easing was used, which is where the central bank buys bonds, thereby forcing an increase in the money supply. When quantitative easing has done its job, the central bank stops buying bonds. They can either sell the bonds, or just let the bonds mature. That is called quantitative tightening. We have been doing that for most of the last decade. It has caused some measures of the money supply to go down for the first time since the Great Depression.
Right now, interest rates are well above zero, so conventional monetary policy is possible. On top of that, deflation is no longer a danger.
I cannot tell if you mean those two sentences as related thoughts or not. Quantitative tightening is rare, because quantitative easing is rare. It has been happening for most of the last decade.
Modern central bankers feel 2% inflation is the perfect inflation rate. Deflation is the worst, being strongly related to the Great Depression, and even the Dark Ages. The Fed had nearly perfected keeping inflation at 2%, before the Great Recession through everything off.
During the Great Recession(2008-2009) we saw the beginning of deflation, so you are wrong about inflation being continuous since FDR. Even when interest rates went to near zero, they could not break deflation. Quantitative easing barely broke deflation by 2014, but still inflation was below 2%.
Into the Night
Verified User
DON'T TRY TO DENY YOUR OWN POSTS!
Paradox. Irrational. You cannot argue both sides of a paradox. Inflation is NOT interest rates!
The dollar was devalued by almost 50% during that time. That is not deflation.
Obama called it 'the New Normal'.
Interest rates are used to raise and lower inflation. That is not saying the inflation is interest rates. I cannot make this more clear; Night is obviously emotionally invested in not understanding this.
In 2009, inflation was -0.4% for the entire year, which is deflation. To get a 50% devaluation up to 2014, you need to go back to 1988. That is not the time period of 2008 to 2014.
Obama never claimed inflation was the "new normal." We were not fighting inflation, but rather deflation.
Consumer Price Index, 1913- | Federal Reserve Bank of Minneapolis
Historical data from the era of the modern U.S. consumer price index (CPI)
www.minneapolisfed.org
Inflation Calculator | Find US Dollar's Value From 1913-2024
Easily calculate how the buying power of the U.S. dollar has changed from 1913 to 2024. Get inflation rates and U.S. inflation news.
www.usinflationcalculator.com
Into the Night
Verified User
Inflation is not interest rates. Redefinition fallacy.
Yes it is, Wally.
DON'T BLAME YOUR PROBLEM ON ME OR ANYBODY ELSE!
Blatant lie.
Yes he did, Wally. Denying history won't work.
Inflation is not deflation. Redefinition fallacy.