MSN article : Pulling the Plug too soon..?

Quote from olias:

. . .but how can you say it didn't work?
More...

Cuz we need another one.

Duh.

QE1.

Then QE2.

And soon QE3. But oh, the others worked according to loonies. Just not well enough.

And how many trillions of QE are enough before the krazy kensians admit failure? 5? 10? 100?

It's hard to image just how much a trillion dollars really is. A million million. Fill Detroit with poor people, take every stinkin' cent they have, then make them all millionaires, and we're talkin' just one trillion. Just one. Here's what a trillion looks like:

http://www.pagetutor.com/trillion/index.html

But the kensians aren't happy with robbing the masses of a measly trillion, they want even more. 10 trillion, 20 trillion, there is no end to their raw greed for your money.
 
Quote from TGregg:

Cuz we need another one.

Duh.

QE1.

Then QE2.

And soon QE3. But oh, the others worked according to loonies. Just not well enough.

And how many trillions of QE are enough before the krazy kensians admit failure? 5? 10? 100?

It's hard to image just how much a trillion dollars really is. A million million. Fill Detroit with poor people, take every stinkin' cent they have, then make them all millionaires, and we're talkin' just one trillion. Just one. Here's what a trillion looks like:

http://www.pagetutor.com/trillion/index.html

But the kensians aren't happy with robbing the masses of a measly trillion, they want even more. 10 trillion, 20 trillion, there is no end to their raw greed for your money.
More...

Great point and the best answer to these guys who continue to spread the propaganda. Kashirin made some salient points as well and I'd argue his analysis is right on pont as well. All of this "recovery" talk because they can boost GDP and try to suppress the inflation data (or not comprehensively measure it) is a boondoggle to central planners who will give a wink and a nod to continued government spending and favored administration corporate friends.

So as TGregg says, they roll out another round of QE every six months and fool the lapdogs into believing this is a "recovery". Truly ridiculous crap.
 
Remember Bubble ben bernanke lied about the soft landing in the economy, he also lied about how strong the economy was 2-3 years ago saying the sub prime crisis was well contained, how many times is he going to lie... He is lying right now about the next problem, inflation along with new asset class bubbles, how may fucking lies can he continue to say, why can't anyone come to their senses that anything he says is not the truth. They will continue the bond buying program till the end of the year, they will have QE3 and they will be raising the debt ceiling, seems to me everything Bubble ben bernanke is doing is working ohhhh so perfectly, hahaha!!! Keep listening to his nonsense talk!!!!



Fed. Chairman Bernanke Sees Low Inflation
Thursday, February 03, 2011
TOM HUDSON, NIGHTLY BUSINESS REPORT ANCHOR: Should you be worried about rising prices? Ben Bernanke isn`t. The Federal Reserve chairman today took questions from reporters for the first time in almost two years. He said he believes inflation will remain low, despite the jump recently in commodity prices. Bernanke also sees jobs picking up soon. As Darren Gersh reports tonight, the Fed chairman spent much of today`s Q&A session talking about the long list of challenges facing the economy.

DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: In a rare appearance before journalists at the National Press Club, the Federal Reserve chairman defended his government bond-buying program known as quantitative easing. Bernanke said the unorthodox policy is working to boost the economy, even though unemployment and inflation both remain too low for comfort. The Fed chairman also pushed back against critics who say the central bank is partly responsible for record-setting food prices around the world. Those critics say the Fed`s low interest rate, easy money policies are weakening the dollar, which exports inflation. But Bernanke said fast growth in emerging markets is causing prices to rise and if those countries don`t like that, they can adjust their economic policies and exchange rates. He dismissed any suggestions the Fed is at all responsible for the economic stress contributing to the unrest roiling the Middle East.

BEN BERNANKE, FEDERAL RESERVE CHAIRMAN: Food in Egypt is priced in Egyptian pounds, not in dollars. If the dollar is weaker, the Egyptian pound is stronger. So clearly, what is happening is not a dollar effect. What`s happening is a growth effect, primarily in the emerging markets, which is creating this tremendous demand for commodities.

GERSH: The Fed chairman also gave one of his strongest warnings yet on the seemingly never-ending outlook for massive Federal deficits. If the political system can`t summon the will to act, he warned investors will lose confidence and charge the Treasury more to borrow money.

BERNANKE: In a vicious circle, high and rising interest rates would cause debt-service payments on the Federal debt to grow even faster, causing further increases in the debt to GDP ratio and making fiscal adjustment all the more difficult.

GERSH: Any adjustment will also have to take place in an economy that has lost eight and a half million jobs. The Fed chairman warned it will take years to claw our way back.

BERNANKE: Until we see a sustained period of stronger job creation, we cannot consider the recovery to be truly established.

GERSH: Fortunately, the Fed chairman said he expects to see some stronger monthly employment reports pretty soon. Darren Gersh, NIGHTLY BUSINESS REPORT, Washington.
 
The dual mandate is a complete load of bullshit and enables these professional liars to simply reference whatever metric favors their loose monetary policy.

They damn well know that unemployment is structural, it has been for years now, but the construction and real estate bubble, temporarily solved the employment problem for a few years at the expense of a massive, massive misallocation of capital and human resources.

So now that we're trillions in the hole and the unemployment issue really is not solved by a long shot and he knows it will continues for years, he'll continue to use that excuse to ignore any and all commodity inflation.

The apologists litter this site with their ridiculous arguments that we can spend our way out of this mess, by literally bankrupting the elderly, the middle class and anyone else who doesn't have a seat close to the money funnel.
 
Quote from TGregg:

Cuz we need another one.

Duh.

QE1.

Then QE2.

And soon QE3. But oh, the others worked according to loonies. Just not well enough.

And how many trillions of QE are enough before the krazy kensians admit failure? 5? 10? 100?

It's hard to image just how much a trillion dollars really is. A million million. Fill Detroit with poor people, take every stinkin' cent they have, then make them all millionaires, and we're talkin' just one trillion. Just one. Here's what a trillion looks like:

http://www.pagetutor.com/trillion/index.html

But the kensians aren't happy with robbing the masses of a measly trillion, they want even more. 10 trillion, 20 trillion, there is no end to their raw greed for your money.
More...

So because it didn't magically solve our problems. it didn't work right?

So by your logic putting Neosporin on my cut 'didn't work' because the wound is still there the next day....yeeeah....makes a lot of sense.
 
Quote from olias:

So because it didn't magically solve our problems. it didn't work right?
More...

Yeah, QE1 didn't "magically solve our problems." Nor did QE2. But now the charlatans are saying QE3 will. The same losers who said QE1 would solve our problems and QE2 definitely would solve our problems are now starting to tell us that . . . well, QE3 is what we really needed.

There's no magic. And trying to blame me for saying there's no magic while your crew offers magic trick after magic trick (named QEn) is pretty disingenuous.

Just how many QEs are enough? When are you willing to admit "OK, this kensian stuff is garbage"? 2 more QEs? 10 more? 200 trillion dollars down the toilet more? Is there a limit at all?
 
They will keep at it till the present value of future liabilities is sufficiently eroded and the real purchasing power of wages has also fallen.


People will be happily back at work making "more than ever before" with 90% of them not realizing that the psychological impact of a higher nominal value will not have compensated for the falling purchasing power.

The cronies have found that this stealth method of dropping wages and defaulting on debts is an effective way of managing a democracy's unreasonable expectations.

Just do not keep too much wealth in "paper" for too long and you will be fine.
 
Simple math shows the deficit not only has to be kept, but it has to increase to grow the economy.

If federal gov't spending is ~3.5T out of a ~14T economy, and the ~10.5T not related to federal gov't is steady or decreasing, then fed gov't spending has to increase for the economy to grow.

If the Fed gov't is already running a 1.5T deficit, and tax revenue, which is proportional to the ~10.5T non federal spending is stagnant or decreasing, then the deficit has to grow to keep the economy growing.

So, if the deficit does not grow, the economy does not grow. Simply having a $1.5T deficit does not grow the economy, it just maintains it at the prior year's level. Also, assuming an interest rate of 5%, the 1.5T deficit adds ~ $75B to the interest that is to be paid each year, so the deficit must grow by $75B each year, with no economic benefit, just to make up the interest.
 
If the govt has the ability to make the economy grow by simply spending, how come there are recessions?

Is govt spending "growth" or just a money transfer?
 
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