Poll Shows Why QE Has Been Ineffective

Tyler Durden's picture

Submitted by Lance Roberts of STA Wealth Management,


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bigdumbnugly's picture

If this recent Bloomberg poll is correct, then we are likely to get an answer very shortly, and it may very well be disappointment.



ya think?

PlusTic's picture

It worked perfectly, as designed.  This was the goal and it has succeeded wildly. 

Unknown User's picture

How can a robbery improve the economy? The QE is no more than a mechanism for swapping nearly worthless derivatives on banks’ balance sheets for US treasuries.

TruthInSunshine's picture

I've written this since 2010, when I first joined as to -

Why QE Has Been Ineffective:

1) It fails to create J-O-B-S (it actually hinders the creation of sustainable jobs by breaking critical mechanisms in the economy & prompting mis-investment)

2) It fails to have a positive impact on W-A-G-E-S (it has a negative impact on wages as it PRODUCES ARTIFICIAL HIGHER REAL COST OF LIVING BY INFLATING PRICES BEYOND LEVELS REAL DEMAND WOULD SET THESE PRICES AT - i.e. Disequilibrium

3) It CAUSES more & longer term structural unemployment

4) It shifts assets away from productive sectors of economy and funnels them towards TBTF, subsidized, wildly inefficient ones



moneybots's picture

"It worked perfectly, as designed.  This was the goal and it has succeeded wildly."


 The top 1% are pleased with the result.  The top .01% are very pleased with the result.

KickIce's picture

Thank you.  How much longer are we going to be subjected to "QE doesn't work" posts?

Dr. Engali's picture

"However, as I stated, what the Federal reserve has managed to do this cycle was help the "rich get richer" with no major positive multiplier impact on the real economy."



In other words the federal reserve has succeeded in doing what it was created to do.

TSTM's picture

And, in exchange for their souls, almost every elected "representative" of the people has sanctioned the theft.

Sudden Debt's picture


youngman's picture

There is more than one patient....

...out of space's picture

world need a structure solution not a QE

TSTM's picture

That is the preferred solution for the .1%. Other people's children die to determine which country's bonds will actually default.

29.5 hours's picture



"many of the respondents believe that the newly found net worth is simply an artificially stimulated illusion created by Fed policy"

The average person, then, is not so very befuddled by government/Fed propaganda. They know their interests, even tho they don't see any way to protect themselves now. The so-called sheeple are not dumb. They are leaderless, that's all.



lunaticfringe's picture

You can't effectively lie to people who have been laid off, their hours and salaries cut, stick em with tax increases, lie to them about inflation and tax em some more with ACA. Most people understand and can feel sodomy. The only people who benefit from counterfeiting (QE) are the counterfeiters and their direct supply chain. They can only counterfeit with a complicit government.. I too can feel the hot breath of this government on the back of my neck. Listen for the zipper.

Tortuga's picture

IMHO, there will be no disappointment for 10's of millions. 

There will be only fear.

fonzannoon's picture

rumors out there that silver jumped in front of a moving LIRR train early this morning. Witnesses overheard silver yelling "I am a giant piece of shit". Oddly the train actually sped up to hit silver and the engineer was seen laughing crazily and giving silver the finger as the train flattened it. Passengers were seen cheering and yelling "good riddance!"

chubbar's picture

I hope no one is buying the idea that the FED is curtailing QE? There are several indications that they have been increasing it.

RaceToTheBottom's picture

The FED has always reserved the right to modify the QE based on world events.  Now just to manufacture those world events...

Spastica Rex's picture

Inequality shows that success is being rewarded. Lions and wildabeests.

moneybots's picture

"With the Federal Reserve now effectively removing the "patient" from life support, we will see if the economy can sustain itself.  If this recent Bloomberg poll is correct, then we are likely to get an answer very shortly, and it may very well be disappointment."


Basic math.  Dennninger notes today that 4th quarter GDP increased 600 billion dollars from a year ago.  Meanwhile, the FED has emmitted 1.1 Trillion Dollars in credit during that time.  4% GDP growth, 6.5% currency debasement.  The negative number exceeds the positive number.

As Denninger put it, "We are factually in a recession."

PlusTic's picture

Yes, joe avg has all the power but don't know how to harness it.  They lack the ability to find the right leader and follow him.  If people stopped paying JPM 6 months interest on their crdit cards, JPM is gone...there is a just a lack of abiltiy to harness their power and use it to control big corps. 

moneybots's picture

"Yes, joe avg has all the power but don't know how to harness it.  They lack the ability to find the right leader and follow him."


Is there a right leader, to begin with?  What are the real motives of anyone who wants to lead?  Denninger was a founder of the Tea Party and he came to not like what he saw it turn into.  Someone is always looking to co-opt a grass roots movement.

lunaticfringe's picture

“I do not know if the people of the United States would vote for superior men if they ran for office, but there can be no doubt that such men do not run.”  Alexis de Tocqueville, Democracy in America

indygo55's picture

That's what they do. They infiltrate the group and identify the leaders. Then they thresten them financially and physically. Then they identify the financial backing and do the same to them. Result? The movement dissolves. 

optimator's picture

You won't see that "Right Leader" ever on the ballot.  You can pick from column one or column two, but both are the same.  On occasion you may see a Ron Paul type come along but they are quickly disposed of one way or another.  They've planned all this too carefully to see a rogue candidate upset their goal.

RaceToTheBottom's picture

"this is still the single worst economic recovery ever."

Maybe we should stop calling it a recovery and call it what it is, a temporary result of parking printed money into the stockmarket, the housing market, etc.

This is not a recovery


moneybots's picture

"This is not a recovery"


First, one needs to reach bottom, in order to recover.  Since 2008, the effort has been to avoid "another Great Depression," so the effort has been to create an even greater credit bubble, the opposite of what is needed to bottom out, so a recovery can begin.

Loophole's picture

What possible reason is there for believing that the practice of stealing trillions of dollars in real wealth from people who produced it (savers and others with money holdings) and giving it to others who didn't will effectuate anything but more economic destruction?

Especially when the principle beneficiaries of this massive theft are the losers who have been responsible for the problems.

It's a downward spiral of destruction.

Massive more doses of the poison that's killing us.

Like him or not, Peter Schiff is right. They will not permanently stop QE.

Until the dollar collapses.

lunaticfringe's picture

I am in awe that we keep discussing QE like it's some sort of mystery.

All it was designed to do was recapitalize an entire bankrupt banking system- limiting losses and looting savers with ZIRP. The rest is just a lot of noise.

Cthonic's picture

 "The rest is just a lot of noise."

I'd tend to agree, especially if intentional interference is included in your definition of noise.



Loophole's picture

I have a simple question:

Do "corporations" control the govt, or does the govt control the corporations?

lunaticfringe's picture

If by corporate you mean the banking cartel- then yes- corporations control the government. They own this fucking place. If only for a little while longer.

loonyleft's picture

tldr. It's a closed system. period. you can't make something out of nothing, pull yourself up by your own bootstraps, or get a free lunch. 

I would liken QE to moving deck chairs on the titanic, but maybe it's more akin to moving lifejackets, but after every round there are less available and for some reason the rich patrons all get one. 

Loophole's picture

I have some simple questions that seem to be constant issues here:

Do "corporations" control the govt, or does the govt control the corporations?

If businessmen are not primarily responsible for producing the wealth of the modern world, who is?



If they are, why isn't the rest of the world rich like the US?

Somehow I can't help but suspect that it's the people with the guns, govts, exploiting the businessmen, the wealth producers.

And not the other way around,

elwind45's picture

Tapper is really an attempt at a controlled recession? Just saying something in the hopes that people change behavior without medication is its goal. Citizens are told what to think and feel and than ask to regurgate on command. If you ask it they will come? Our country is being led to a slaughter of expectations if you want your recession than you can keep? However a depression ask that question. A people think it than make it so? The disconnect is dangerous and it plays out at the arena of consumption or are pensioners the new net savers

moneybots's picture

"I have a simple question:

Do "corporations" control the govt, or does the govt control the corporations?"


Didn't the latest NDAA give the President authority to take over America industry?  Weren't there 80,000 pages of new rules and regulations created last year by the federal government?



elwind45's picture

I cant find anything worth buying said the pensioner. So i shall wait for it to come down and wait

BrigstockBoy's picture

Will any of those hollow points be fired at bodies of the 0.01?

11b40's picture

Only the ones in the hands of private citizens.

nightshiftsucks's picture

It seems since interest rates are so low they have to prop up the stock market for pension funds and 401k's or people would have to save even more money.They will print more and the stock market goes a lot higher before the economy crashes or the dollar becomes worthless.

I Write Code's picture

The "government financial assistance at record levels"  doesn't seem to adjust per-capita, for increased population.  We can only pray they adjusted for inflation.  Large parts of it, SSN and Medicare, are actuarial, expected - not pretty, but expected.

It's that other chart, "social benefits as % of real disposable income" that is scary, but how much do we blame Obama and how much on the banksters 2008 collapse?

Waterfallsparkles's picture

The problem is that there is substancial inflation in the items that people buy.  Like food, gas and heating oil.  Because the Fed does not count these items does not negate the fact that they are cutting into peoples budgets and disposable income.

So, the more the Fed prints to push the Market higher the higher food, gas and heating oil go which influences "Consumers" spendable dollars.

Ignoring the numbers does not make them go away.

novictim's picture

OMG...inflation?  What inflation!  

You folks keep NOT understanding what is going on.  You think that QE is expanding the money supply (M1/M2)and if it DID then there would be inflation but ONLY if Demand far exceeded supply for goods.

Is this rocket science?  NO!

Demand is LOW LOW LOW...'cause you and you and you are BROKE!  The shelves are FULL.  YOUR WALLET IS EMPTY...

QE is not money that enters the money supply...it is money that enters the stock market, the housing market...but not the consumer market.  Get it?  Stocks are inflated, home prices are inflated, but the consumer is broke.  

The consumer has no money for retirement.  The consumer cannot afford money for their kids tuition. The consumer who is the wage earning worker has not seen a pay increase for 30 years.  There is no inflation.

novictim's picture

Oh, come on!  The shelves are full but the wallets are empty! 

Quantitative Easing (QE) is, at it's core, just money for investment...as such it is just a "hail Mary" trickle-down economic tool.  Can the same tool work at anytime for ANY job that needs doing?  

We have >20% overcapacity to produce!!!!  Let me restate that:  There are so many idle factories in the USA (not to mention unemployed potential workers) and idle factories all over the globe (remember, our QE is slushing to everywhere) that YOU should be outraged at this insistent and misplaced policy.  Demand is what is lacking!  You need a raise!

Do you have a tool at home that works for EVERY JOB in need of doing for home repair?  Like a hammer that acts as a screw driver and a tape measure and as duck tape all at the same time?  No, you don't!  That is what is so dumb (and corrupt) about this policy choice.  Who is it benefitting?  (HINT: Not you). 

>$2.5 Trillion in debt through QE alone is being charged to your credit card...and counting!

In the Macro-Economic sense, QE only works when there is high demand that is not met with sufficent supply.  This would be the case if people were flush with money but the store shelves were empty...that is not the current dynamic!

$2.5Trillion dollars later, we are still trying to boost job growth and production by giving investors cheap money but nothing is being done to increase consumption??!!

This is not incompetence.  The fundamentals are too well established.  

Does this strike you as CRIMINAL?  It does to me.  

And we want to cut food stamps?...while we give bankers $85 Billion per month?  Dog help us.