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Date: 03/21/13 08:31 AM

12 Responses to Federal Reserve`s Money Printing Failure [Pic+]

  1. Profile photo of Andrew155
    Andrew155 Male 18-29
    2579 posts
    March 20, 2013 at 8:03 pm
    Link: Federal Reserve`s Money Printing Failure - Quantitative Easing
  2. Profile photo of dm2754
    dm2754 Male 40-49
    3351 posts
    March 21, 2013 at 8:44 am
    repost
  3. Profile photo of CrakrJak
    CrakrJak Male 40-49
    17514 posts
    March 21, 2013 at 9:06 am
    This is the 800lb. Gorilla in the room folks.

    If this amount of cash were to ever hit the real world, and not just be numbers inside the bank`s computers, that inflation rate would make the Weimar Republic economy look like a children`s game.
  4. Profile photo of SageBlue
    SageBlue Male 30-39
    70 posts
    March 21, 2013 at 9:26 am
    So basically, "money" is a game in which no one wins.
  5. Profile photo of Cubmaster938
    Cubmaster938 Male 40-49
    8 posts
    March 21, 2013 at 10:08 am
    Of course, to be correct, the Federal Reserve Bank does not actually print currency. That would be the Bureau of Engraving and Printing at the Treasury Department.
    I don`t understand "CrakrJak`s" comment "if this amount of cash were to ever hit the real world" -- what does that mean? Where does he think that money is? It`s already out there, and despite all the predictions of disaster, there`s still no significant sign of inflation in the U.S. economy...
  6. Profile photo of Andrew155
    Andrew155 Male 18-29
    2579 posts
    March 21, 2013 at 10:31 am
    Cubmaster - you didn`t read the link. It explains that it`s not physical printing. They have a loophole! It takes over existing loans with money it creates. It "digitizes" new money, that`s no different than printing and that`s not even a partisan dispute.

    As for hitting the "real world" - have you ever heard of money velocity? For inflation to set in, there has to be money velocity. The money has to get spent in the real economy. Currently, most of this fed money is either being sit on by the banks, or it is in the stock market, where it does not affect the inflation rate. Although if we counted inflation the same way we did before the 90`s, we would have over 5% inflation right now.

    I really can`t believe it when people believe in this fantastical idea that we can "digitize" over a trillion a year with no side effects, no catch at all.
  7. Profile photo of AntEconomist
    AntEconomist Male 40-49
    356 posts
    March 21, 2013 at 10:38 am
    @Andrew: Money (in the sense of the money supply as opposed to financial wealth) is never "in the stock market." I spend a dollar for stock and that dollar goes to the person who sold me the stock. My wealth is in the stock market, but the dollar is floating around in the economy.

    I spoke with a Fed economist a few weeks ago. He confirmed the spirit of CrakJak`s statement. What concerns Fed economists most right now is that, if banks were to loan out the massive amounts of money the Fed has pumped into them, we would see significant inflation.
  8. Profile photo of Pooptart19
    Pooptart19 Male 18-29
    2441 posts
    March 21, 2013 at 11:55 am
  9. Profile photo of Bakcagain21
    Bakcagain21 Male 18-29
    560 posts
    March 21, 2013 at 1:35 pm
    Nothing new here, even the romans debased their currency. When your country get`s into debt you inflate it away... Those who suffer are the savers who dd nothing wrong.
  10. Profile photo of Andrew155
    Andrew155 Male 18-29
    2579 posts
    March 21, 2013 at 4:12 pm
    Everyone`s steering clear of the 800 pound gorilla, I see.
  11. Profile photo of intrigid
    intrigid Male 18-29
    914 posts
    March 21, 2013 at 4:53 pm
    "It`s already out there, and despite all the predictions of disaster, there`s still no significant sign of inflation in the U.S. economy..."

    That`s like saying the dead, dry timber has been collecting in the forest for decades, and despite what the doom and gloomers are saying, there`s STILL no sign of a massive forest fire.
  12. Profile photo of CrakrJak
    CrakrJak Male 40-49
    17514 posts
    March 21, 2013 at 5:39 pm
    Well said intrigid.

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