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GoSlash27
11-04-2010, 02:16 PM
I saw this one coming. Precious metals are up, stock market is up, and the dollar is down. Thanks Bernanke, you retard!
http://www.efinancialnews.com/story/2010-11-04/baring-toby-nangle-quantitative-easing


"Last night the Federal Reserve moved to announce that it will embark on a second wave of quantitative easing (QE) in the United States, injecting fresh money into the system by purchasing US$600bn worth of US government bonds over the next eight months.

In our view, this is one of the greatest policy mistakes in the Fed’s history. Certainly, the first round of QE worked: it addressed a huge liquidity problem with a major liquidity solution. In other words, it was the right medicine to the right problem. Two years on, the principal problem in the United States is one of solvency and growth rather than liquidity. Indeed, there is currently a relative abundance of liquidity in the economy, borne out by low yields on corporate bonds and free flowing capital to businesses. Despite this, the economy faces huge headwinds in the form of high unemployment and continued issues with the housing market.

So how will a liquidity solution correct a solvency problem? Clearly, believing they have found a new elixir, the authorities have come to the conclusion that QE will cure all ills. In this regard, we are very sceptical. It appears that the Fed is gambling that the so-called portfolio balance channel effect – pushing money out of government bonds and into other assets – will lift risk asset prices and cause the dollar to fall, thus boosting the US economy and essentially scaring the prudence out of savers. The gamble is that this boosts profits and wages, rather than simply prices which would be counter-productive.

We remain unconvinced and view QE2 as a huge policy error on the part of the Fed. However, over the short-term, we expect recent market trends to continue as investors maintain an appetite for risk. After all, the announcement was roughly in line with market expectations."

What the Fed did yesterday was a direct devaluation of the dollar by flooding the market with dollars straight off the printing press. Prices are going up and savings are losing their value.

The WH
11-04-2010, 03:24 PM
Holy shit, I need to take a loan from the bank and buy some greenbacks. Anyone interesting?

GoSlash27
11-04-2010, 04:14 PM
Holy shit, I need to take a loan from the bank and buy some greenbacks. Anyone interesting?

Good luck finding people foolish enough to join you.

The WH
11-05-2010, 01:17 AM
I know people here who have made a quick 10,000 crowns playing the currency swap game. Especially in the last 5 years. They are more ''connected'' than me though, if you know what I mean.

GoSlash27
11-05-2010, 05:57 AM
I know people here who have made a quick 10,000 crowns playing the currency swap game. Especially in the last 5 years. They are more ''connected'' than me though, if you know what I mean.

Yeah, I gotcha. You should check in with those people and ask them why buying dollars would be a very bad investment.

SteelMember
11-05-2010, 07:28 AM
http://www.tagg.org/pix/Money/american-dollar-toilet-paper.jpg


I like how the news uses the phrase "adding cheap money to the economy" like it's a good thing. :doh:

GoSlash27
11-14-2010, 09:22 AM
http://www.youtube.com/watch?v=PTUY16CkS-k

JonM229
11-14-2010, 09:50 AM
Looks like I'd better start buying Ameros (http://www.snopes.com/politics/business/amerocoin.asp)

The WH
11-14-2010, 09:56 AM
I've heard ''Amero'' conspiracy theories for years. It would be a tragedy if that actually happened.