Quantitative Easing...

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The Almighty
http://www.realclearmarkets.com/art...monetary_policy_of_the_adolescent_100027.html

The above link should be read, by conservatives and liberals alike. It is time to end this nonsense. It is time we took the pain for our profligate spending habits of the past several decades. The two parties are destroying this country and blaming each other for the malaise. They each have good ideas and they each have pretty moronic ones. It is time to get back to working on the things that will actually improve the economy long term. We must stop these short term stop gap measures that are only delaying the inevitable.
 
Superfreak said:
http://www.realclearmarkets.com/art...monetary_policy_of_the_adolescent_100027.html

The above link should be read, by conservatives and liberals alike. It is time to end this nonsense. It is time we took the pain for our profligate spending habits of the past several decades. The two parties are destroying this country and blaming each other for the malaise. They each have good ideas and they each have pretty moronic ones. It is time to get back to working on the things that will actually improve the economy long term. We must stop these short term stop gap measures that are only delaying the inevitable.
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Basically, you think the economy isn't bad enough and we should make it worse because . . . well, just because.
 
Almost none of the "experts" did not see the crash coming.
I have trouble understanding that since it was obvious to me.
And I am no expert.
Perhaps that is why I could see it coming and they could not. No training in economics and such to program my mind, just intelligence and common sense.
 
Superfreak said:
Basically you can't read. Thanks for sharing.
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I read your comment and was responding to it.

As for the article, it's basically an inflation boogey-man piece that presents as something else written in the most condescending and arrogant manner possible. It's not surprising that you like it.
 
Dungheap said:
I read your comment and was responding to it.

As for the article, it's basically an inflation boogey-man piece that presents as something else written in the most condescending and arrogant manner possible. It's not surprising that you like it.
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Hilarious.
 
Superfreak said:
tell us Dung... what positive effects has QE had the last two rounds?
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You tell me what negative effects the first two rounds produced.

I don't think Quantitative Easing really does a whole heck of a lot (though the latest round and its focus on mortgage-backed securities has arguably (isn't everything arguable) brought about positive developments in the housing markets). It's a last resort policy where the traditional tools of monetary policy are exhausted, but it's better than nothing where fiscal policy isn't going to do anything positive. The fact that the FED is committed to doing more to produce economic growth is a good thing.

I personally think the FED should just give people money instead of giving it to the bankers on the hopes that the bankers can efficiently allocated it (they've proven they can't).
 
Dungheap said:
I read your comment and was responding to it.

As for the article, it's basically an inflation boogey-man piece that presents as something else written in the most condescending and arrogant manner possible. It's not surprising that you like it.
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Here maybe this cartoon can explain it to you better.

 
Dungheap said:
You tell me what negative effects the first two rounds produced.

I don't think Quantitative Easing really does a whole heck of a lot (though the latest round and its focus on mortgage-backed securities has arguably (isn't everything arguable) brought about positive developments in the housing markets). It's a last resort policy where the traditional tools of monetary policy are exhausted, but it's better than nothing where fiscal policy isn't going to do anything positive. The fact that the FED is committed to doing more to produce economic growth is a good thing.

I personally think the FED should just give people money instead of giving it to the bankers on the hopes that the bankers can efficiently allocated it (they've proven they can't).
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Except they are NOT doing anything to promote economic growth. That is the fallacy. They are continuing to put downward pressure on the value of the dollar. They are creating money from nothing and pretending that is helping. It is not. It just sits at the banks and forces prices up on consumers via the declining dollar.
 
Superfreak said:
Except they are NOT doing anything to promote economic growth. That is the fallacy. They are continuing to put downward pressure on the value of the dollar. They are creating money from nothing and pretending that is helping. It is not. It just sits at the banks and forces prices up on consumers via the declining dollar.
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Just out of curiosity, SF, why do you think the Chinese (and other countries that rely heavily on exports) manipulate their currency so that it is weak relative to the dollar?

Also, I agree that Quantitative Easing isn't a great way to promote growth, but it's better than nothing, which is the alternative.
 
Dungheap said:
Just out of curiosity, SF, why do you think the Chinese (and other countries that rely heavily on exports) manipulate their currency so that it is weak relative to the dollar?

Also, I agree that Quantitative Easing isn't a great way to promote growth, but it's better than nothing, which is the alternative.
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Because they are a net EXPORTING country. We are a net IMPORTING country... and the largest economy on the planet. It makes sense for them. That is why a weak dollar policy is ridiculous. It is why we thrived under strong dollar policies of Reagan and Clinton. It is a large reason why we suck now.

We are a net importer. It makes sense to have a very strong dollar. This in turn helps the global economy as well given that commodities are priced in US dollars. The rising dollar would tend to have a downward pressure on commodities pricing. Making the costs of transportation/energy cheaper for everyone.

QE is NOT better than nothing. That is the point. It is actually hurting us rather than helping. It has done little but put downward pressure on the dollar. Which in turn puts upward pressure on energy and transportation expenses. The more we all spend on energy, the less we have for the other sectors of the market. If Gasoline prices fall by 30%... where do you think that money will flow to?
 
Superfreak said:
Because they are a net EXPORTING country. We are a net IMPORTING country... and the largest economy on the planet. It makes sense for them. That is why a weak dollar policy is ridiculous. It is why we thrived under strong dollar policies of Reagan and Clinton. It is a large reason why we suck now.
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It seems to me you have a cause-effect/causation-correlation problem here. When the economy is thriving and you have high employment, as we did during Clinton and Reagan, strong dollar policies make sense. When the economy is weak and you have high unemployment, weak dollar policies make sense.


Superfreak said:
We are a net importer. It makes sense to have a very strong dollar. This in turn helps the global economy as well given that commodities are priced in US dollars. The rising dollar would tend to have a downward pressure on commodities pricing. Making the costs of transportation/energy cheaper for everyone.
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It doesn't make sense to have a strong dollar when unemployment is high. Weak dollar means more exports which means more jobs.


Superfreak said:
QE is NOT better than nothing. That is the point. It is actually hurting us rather than helping. It has done little but put downward pressure on the dollar. Which in turn puts upward pressure on energy and transportation expenses. The more we all spend on energy, the less we have for the other sectors of the market. If Gasoline prices fall by 30%... where do you think that money will flow to?
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It isn't hurting, though. Again, this is just inflation boogey-manism. Inflation has been stable.
 
Dungheap said:
It seems to me you have a cause-effect/causation-correlation problem here. When the economy is thriving and you have high employment, as we did during Clinton and Reagan, strong dollar policies make sense. When the economy is weak and you have high unemployment, weak dollar policies make sense.
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If our economy was based as a net exporter, a weak dollar would make sense. We are a net importer. This makes no sense to have a weak dollar. A weak dollar makes the costs of goods higher for people to buy at a time when they have less to begin with. A strong dollar brings down the price of goods imported, including oil.

The savings from lower energy/transportation costs alone would be a big boost to spending in other areas.

It doesn't make sense to have a strong dollar when unemployment is high. Weak dollar means more exports which means more jobs.
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Wrong. If our economy was based largely on manufacturing and exports you might have a point, but it is not. A strong dollar will promote the best growth potential. Making things cost more does little to help the economy.


It isn't hurting, though. Again, this is just inflation boogey-manism. Inflation has been stable.
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LOL... it HAS been hurting. The costs of food, clothing, energy... all have been showing higher levels of inflation. The day to day items we use are costing consumers more today than four years ago.
 
Superfreak said:
If our economy was based as a net exporter, a weak dollar would make sense. We are a net importer. This makes no sense to have a weak dollar. A weak dollar makes the costs of goods higher for people to buy at a time when they have less to begin with. A strong dollar brings down the price of goods imported, including oil.

The savings from lower energy/transportation costs alone would be a big boost to spending in other areas.



Wrong. If our economy was based largely on manufacturing and exports you might have a point, but it is not. A strong dollar will promote the best growth potential. Making things cost more does little to help the economy.




LOL... it HAS been hurting. The costs of food, clothing, energy... all have been showing higher levels of inflation. The day to day items we use are costing consumers more today than four years ago.
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Oil is bought with dollars, so how does the exchange rate affect the price?
 
Superfreak said:
You once again demonstrate that you will post articles without actually comprehending what is written.

Funny how none of the liberals that have commented thus far can actually comment on the content of the article in the OP. I wonder why?
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Becuase its crap from a Cato guy who is NOT anywhere near honest.

Look at how he saw the building mess?
 
evince said:
Becuase its crap from a Cato guy who is NOT anywhere near honest.

Look at how he saw the building mess?
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Let me guess, because YOU are going to PRETEND he is 'not anywhere near honest'... we should just believe you?

Thanks for again proving you have no clue what you are talking about.
 
Dungheap said:
Just out of curiosity, SF, why do you think the Chinese (and other countries that rely heavily on exports) manipulate their currency so that it is weak relative to the dollar?

Also, I agree that Quantitative Easing isn't a great way to promote growth, but it's better than nothing, which is the alternative.
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They do so to make their goods cheaper to sell abroad. But just because they punish their citizens doesn't we should punish ours
 
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