What is the economic rationale for allowing the Fed to create trillions of dollars out of thin air when the country is not in a financial crisis?
Shouldn't this raise obvious alarm bells?
Shouldn't this raise obvious alarm bells?
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What is the economic rationale for allowing the Fed to create trillions of dollars out of thin air
- Thread starter Phill Twist
- Start date
did you just get into the markets or something
It's going to cause rampant inflation, any minute now...well maybe just any minute now..really, it's just around the corner...actually we're in the middle of it you just can't tell because of a vast conspiracy....
Just ask the folks who've been apoplectic about that since 2008, they can tell you all about it.
Just ask the folks who've been apoplectic about that since 2008, they can tell you all about it.
When the fed announces QE4 this fall, tooo da moooon
Trading right now is like watching paint dry though, blah
Trading right now is like watching paint dry though, blah
What is the economic rationale for allowing the Fed to create trillions of dollars out of thin air when the country is not in a financial crisis?
Shouldn't this raise obvious alarm bells?
were still in the same financial crisis but its being masked by the trillions the fed has printed over the last 5 years or so....and if were NOT in a financial crisis any longer why are rates still at 0%, they haven't moved up in nearly 10 years!!!! And why are all other central banks around the world stimulating their worthless economies with more stimulus and low interest rates???
When the fed announces QE4 this fall, tooo da moooon
Trading right now is like watching paint dry though, blah
That should change by Thursday afternoon and Friday, Im sure volatility is going to be off the charts going into Thursday and friday!! So I hope
One would think that if you were able to add trillions to an economy without increasing inflation that you should be pretty happy about it! You seem to have this idea that there is some moral imperative that more money is bad, that somehow you have to "earn it", no pain no gain. In truth the danger of more money is inflation. If you can manage to create money without inflation, congratulations you've managed a tough balancing act and you should be commended. I seriously recommend a good macro class, with the MOOCs around these days you can take one online for free from a top university (https://www.mooc-list.com/tags/macroeconomics?static=true). I think you'll find it very enlightening, the field is fascinating and when you take the time to really study it you'll find there are a lot of non-obvious conclusions to be learned.were still in the same financial crisis but its being masked by the trillions the fed has printed over the last 5 years or so....and if were NOT in a financial crisis any longer why are rates still at 0%, they haven't moved up in nearly 10 years!!!! And why are all other central banks around the world stimulating their worthless economies with more stimulus and low interest rates???
It's going to cause rampant inflation, any minute now...well maybe just any minute now..really, it's just around the corner...actually we're in the middle of it you just can't tell because of a vast conspiracy....
Just ask the folks who've been apoplectic about that since 2008, they can tell you all about it.
I know you disagree about the inflation part of what QE and spending trillions has done, there is inflation. I know many have said its coming, I have said it and I see it. I see it in housing, I see it goods and services, colleges tuitions, medical coverages, prescriptions, food, rents, etc etc....its all right there, inflation isnt 2% hahaha.....I don't believe what the media says about 2% inflation, thats all worthless dribble...
One would think that if you were able to add trillions to an economy without increasing inflation that you should be pretty happy about it! You seem to have this idea that there is some moral imperative that more money is bad, that somehow you have to "earn it", no pain no gain. In truth the danger of more money is inflation. If you can manage to create money without inflation, congratulations you've managed a tough balancing act and you should be commended. I seriously recommend a good macro class, with the MOOCs around these days you can take one online for free from a top university (https://www.mooc-list.com/tags/macroeconomics?static=true). I think you'll find it very enlightening, the field is fascinating and when you take the time to really study it you'll find there are a lot of non-obvious conclusions to be learned.
With all this crazy talk about getting educated and understanding actual economics, you may be asked to leave the room. LOL. These threads are for conspiracy theories - and not just theories - conspiracy realities! Get some popcorn and put your feet up.
I'm serious about the MOOC, especially for someone with your interest in the subject. I think you'll find it really worthwhile, even if you took the courses in undergrad. I did my MBA late and my life experience made those courses way more valuable for me even though I was essentially redoing them from undergrad.I know you disagree about the inflation part of what QE and spending trillions has done, there is inflation. I know many have said its coming, I have said it and I see it. I see it in housing, I see it goods and services, colleges tuitions, medical coverages, prescriptions, food, rents, etc etc....its all right there, inflation isnt 2% hahaha.....I don't believe what the media says about 2% inflation, thats all worthless dribble...
It's always easy to find counterexamples to the current low inflation, but even many of those don't hold up to actual scrutiny. Take tuition for example, since we're talking about education and you used it as an example. MOOCs didn't really exist in 2008, now you can take almost any course imaginable from the best professors at the best universities for free! And even if you are a traditional student, tuition is a misleading number. I'll talk about Stanford because I happen to be familiar with it; tuition for undergrads is officially $44,000 and room and board another $13,000. However if your family makes less than $100,000, which is far higher than the nation's median income, you pay no tuition. If they make less than $60,000, still above the national median income, you pay no tuition or room and board. A simplistic calculation of $57,000/year to go to Stanford times X students costs $XXXXX is simply wrong, in fact very very wrong.
We can debate every item you listed and I could provide dozens of counterexamples, but I will leave you with one macro item that you just can't ignore. Since 2008 the price of energy has fallen by 70%. The price of metals is down 40%. These prices get baked into the cost of almost everything we consume, so either the midstream producers are all colluding and making incredible windfall profits without any of us realizing it, or prices in general have gone down or certainly haven't gone up. Keep in mind this is just an intuitive way to look at it in keeping with the intuitive feel of the thread so far. However in the end I'm going to go with the rigorous quantitative measurement of prices that makes up the dozens of price indexes produced by dozens of completely independent public and private entities around the world, absent some specific reasons why every one of them is inaccurate in the same direction.