Fed is buying treasuries

[poborsky]

Quote from intradaybill:

Those stupid traders that sold the dollar today now nothing about the velocity of money. They will get burned soon. It is the velocity of money that generates inflation, not quantitative easing and the velocity is down at this point, negative slope, not even sign of turning up. Stupid suckers.

Soon the EU central bank will be forced to do quantitative easing and EUR will fall balancing things out. In the G20 summit the US tried to convince Europeans to go along with them and the British with quantitative easing and they will have to sooner or later if they want to keep the union together. Three nations will be forced out pretty soon based on the spreads they get for their bond issues relative to German bonds.

Monies created from quantitative easing are NOT printing money in the traditional meaning of the words. These monies can be withdrawn from the economy as easily if the central banks see signs of inflation.

Everything working as planned to get the new long term economic cycle in progress. It will take a few years though. First deflation, then moderate inflation, then stagflation, then recession and afterwards a boom.

Historical data tells us that increasing money supply causes inflation.

No country will be leaving EMU. There is nowhere else to go. Countries are trying to join EMU not leave it.

When economists talk about withdrawing money from circulation they mean raising interest rates. This takes political leaders with real guts.

The current leaders of the US are trying to kick start more lending and spending. Where do you think this will lead?

 

[ASusilovic]

Quote from Random.Capital:

#2 No trade with any significant economy that does not have a fully convertible currency.

Why not a global currency ? Let´s call it "EURUSDJPYSFRGBPAUDNZDRNB"...

 

[ASusilovic]

Quote from intradaybill:

Those stupid traders that sold the dollar today now nothing about the velocity of money. They will get burned soon. It is the velocity of money that generates inflation, not quantitative easing and the velocity is down at this point, negative slope, not even sign of turning up. Stupid suckers.

Intradaybill,

do something for the economy and stick to your ET name ! Create intraday bills and spend some money thus enforcing "velocity of money" !

 

[dhpar]

Quote from intradaybill:


Monies created from quantitative easing are NOT printing money in the traditional meaning of the words. These monies can be withdrawn from the economy as easily if the central banks see signs of inflation.

it is unbelievable how many people believe this mantra. it seems we actually need some hard lessons in economy 101 once again...

quantitative easing IS printing money and in a technical way is the only way to do so. zimbabwe was doing the same thing with the only difference that they stopped accounting for it (in terms of the domestic debt).

to say that money can be easily withdrawn when signs of inflation show up is naive at best. think about political implications - especially when the inflation signs are during high unemployment.
next, who will be suddenly buying back all these treasuries if US is screwed up? how do you get them back to investors?
etc etc.