Federal Reserve`s Money Printing Failure [Pic+]

Submitted by: Andrew155 3 years ago

Quantitative Easing
There are 12 comments:
Male 17,512
Well said intrigid.
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Male 914
"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.
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Male 2,578
Everyone`s steering clear of the 800 pound gorilla, I see.
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Male 560
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.
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Male 2,440
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Male 371
@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.
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Male 2,578
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.
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Male 8
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...
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Male 70
So basically, "money" is a game in which no one wins.
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Male 17,512
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.
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Male 3,578
repost
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Male 2,578
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