US FED looks at 3rd Round of Qualitative Easing

[The Stig]

US FED looks at 3rd Round of Qualitative Easing - Original and Complete Story at Financial Times (http://www.ft.com/intl/cms/s/0/7015fcfc-d419-11e1-942c-00144feabdc0.html?ftcamp=published_links%2Frss%2Fw orld_us%2Ffeed%2F%2Fproduct#axzz21Rlgnvmr)


Fed looks at third round of easing

By Robin Harding in Washington

The recent slowdown in US economic growth is forcing the Federal Reserve to consider something for which it has always set the bar very high: a third round of quantitative easing.

A decision on whether to launch another round of asset purchases remains in the balance as the central bank wrestles with a complicated economic outlook and uncertainty about the costs and benefits of its easing tools.

[The Stig]

Of course there are risks. First, a central bank can lose money on its purchases, money that will ultimately have to be underwritten by taxpayers either with higher future taxation or by the central bank creating more money and risking higher future inflation. Second, go too far with creating and spending money and you will destroy the value of the currency. Inflation or even hyperinflation is the result. Third, if a descent into QE destroys confidence in an economy rather than gives reassurance that the authorities are on the case it can be counter-productive.

That is why central banks cannot use QE willy-nilly, but if you are not aggressive enough QE simply will not work to change other interest rates in the economy and stimulate demand the trouble is, because the policy is unorthodox and the situation is dramatic no one knows how much QE is too much and how much is not enough

I clicked on the link to the glossary on the word "Qualitative Easing" and here's part of what came up. Seems wonderful...... :(

Here's a funny line from the entry....


Sometimes dubbed incorrectly "printing money" a central bank simply creates new money at the stroke of a computer key, in effect increasing the credit in its own bank account.

Yes....I can see where that's TOTALLY different :rolleyes:

The entire definition HERE (lexicon.ft.com/Term?term=quantitative-easing)

[Sniper-T]

:(

I wish I could do that!

[realist]

You know I was really worried about that. Now they do not have to kill so many trees to print money, uh make money. So if I understand this they are not printing more money just making more but nothing it isn't a tangible thing? I guess that is like me using my credit card with no intent to pay it off but always pay just a little so it will not be theft only fraud.......... BTW I now deem that my credit card now has a $100,000 limit this week.

[Grumpy Old Man]

And so we see the World's biggest ponzi scheme in the preparatory stages.

[bacpacker]

If we did the same thing it would be called

COUNTERFITING

[DarkLight]

If we did the same thing it would be called

COUNTERFITING

When they do it that's still what it's called, they just have "the good plates" to print with. When you print money with nothing to back it up and devalue the existing currency which is what they are doing, they are no better than petty criminals. They are very good at it but they are no better and no different than common petty thugs.

[eagle326]

If we did the same thing it would be called

COUNTERFITING

Hey!! Where are those plates from the Southern States? Hell they can't be worth any less than the Yankee dollar. Probably worth more if we could print some. :D

[bacpacker]

My bet is the damn carpetbaggers got their hands on them. Probably related to the worhtless shitheads running things now.

[The Stig]

Like the other threads this one as also run it's course.

If the Fed does more than "consider" a 3rd round of stupidity...er...uh...QE....I'll be glad to reopen so we can discuss how this effects our day to day lives and prepping.

Nobody has gone too far off track on this or the other threads I've been closing. Just trying to clean a few old things up. Don't want to delete the threads and lose the information.