This QE really drove these oil prices

[wildchild]

It seems like as soon as they stopped the Fed pump, these oil prices tumbled. We were told this whole QE program would not have any effect on prices. The verdict is in and we know that was a lie. We now know that everybody had to pay high gas prices because of the Fed pump and they haven't even started to unwind it. We are getting an idea of what the bill will look like.

 

[Tsing Tao]

It's not just oil. Speculative money chased everything from oil to farmland, stocks, whatever. If you make saving money worthless, and reward spending, you shouldn't be surprised when you have no savers and people living on nothing but debt, or chasing yield.

But the zealots and sorcerers will tell you that we had to do it, or else we'd have seen another great depression (which we will probably still get in some form). These wizards will tell us that Bernanke was a genius and that Yellen is a gift from God. Isn't that right, piezoe?

 

[wildchild]

It's not just oil. Speculative money chased everything from oil to farmland, stocks, whatever.

You are absolutely right. I was just using oil as an example because QEs effect on oil was so clear, and most people can relate to it.

 

[Tsing Tao]

You are absolutely right. I was just using oil as an example because QEs effect on oil was so clear, and most people can relate to it.

Yeah, I didn't mean to imply anything about your knowledge of the subject. Just adding on.

Here's a good read:

http://charleshughsmith.blogspot.com/2015/01/2015-now-that-fed-drove-everyone-into.html

 

[Tsing Tao]

“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.” – Ludwig von Mises

 

[TGregg]

“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.” – Ludwig von Mises

It's different this time. *snort*

 

[Ricter]

Of course if oil prices rise because of increasing worldwide demand, say numerous economies crawling out of a great recession, while the Fed has (attempted to) reinflate the US economy because of the same recession, one might be tempted to play the feddunit card.

 

[Tsing Tao]

Of course if oil prices rise because of increasing worldwide demand, say numerous economies crawling out of a great recession, while the Fed has (attempted to) reinflate the US economy because of the same recession, one might be tempted to play the feddunit card.

k, let us know when that happens.

 

[der_kommissar]

But the zealots and sorcerers will tell you that we had to do it, or else we'd have seen another great depression (which we will probably still get in some form). These wizards will tell us that Bernanke was a genius and that Yellen is a gift from God. Isn't that right, piezoe?

lol, these idiots have three examples from the past 15 years to draw from...and YET, each and every time they believe something is different wrt to the how and why of speculative excesses.

 

[der_kommissar]

Of course if oil prices rise because of increasing worldwide demand, say numerous economies crawling out of a great recession, while the Fed has (attempted to) reinflate the US economy because of the same recession, one might be tempted to play the feddunit card.

If the last six years of "central banks gone wild" hasn't done it, then all of said "numerous economies" aren't likely to return to growth "organically".