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If QE Is So Great, Why Stop Printing Now?
Submitted by Dominique Dassault via GlobalSlant.com,
Why Stop Printing Money Now?
Chair Yellen frequently reminds us how effective and innovative QE is as a monetary policy tool. She even referred to the monetary actions, of her former boss, as heroic at a commencement speech this past spring. Literally…QE has saved the financial world. We must thank Mr. Bernanke and Ms. Yellen for being so Ivy League and Beltway intelligent.
And, also, how generous of them to share this amazing gift of theirs with our friends in the developed world [UK, Japan, and the EU, from what I understand, is now beta testing the program]. This magical elixir is sure to cure any and all global economic ills.
Come to think of it why don’t we erect two massive monuments of the both of them? They can be built right in the middle of America for everyone to see. And since Ms. Yellen seems to be so diminutive we can build both of them really big…each one 500 stories tall to match their massive intellects. The project will surely create hundreds of jobs and the payroll can be “covered” by a “one time” ceremonious QE4.
But what I’m really curious and concerned about is the following:
Ms.Yellen…oh worshipful economic guru… Why are you stopping QE right now?
There is so much more to be done. For example, why doesn’t The Fed buy and retire ALL of the national debt? Then the government would be in a really keen financial position. The true envy of the world.
Why are we, the citizens of this great country, no longer worthy of the almighty, far ranging and omnipotent QE?
- We’ve done what you’ve asked of us.
- We’ve bought stocks…like you desired.
- We’ve bought bonds too…as suggested.
- We’ve bought houses/condos…like you told us to.
- We’ve bought new cars…like you said we should.
- And we’ve borrowed a whole lot of money in order to finance these transactions.
Isn’t that what we are supposed to do? You see, it seems, having debt does not really matter anymore because you’ve been so kind to keep interest rates artificially low. Of course you’ve maintained low rates, on our behalf, because you are so wise and wonderful. And we know that with this powerful machine you have…I believe it is called a PRINTING PRESS…you can solve any economic problem. So, to reiterate, why are you stopping QE? You must be kidding…Right? I’ve become so accustomed to it. Sort of like my 2 glasses of wine every night while watching my recorded versions of “The View”.
I’ve even noticed that you’ve been buying a lot of debt issued by our awesome US Treasury…6 years running. How nice of you to immediately return the coupon payments paid by the US Treasury right back to the US Treasury. It makes me wonder why these bonds were ever even issued but I guess it makes sense because you really did not work for that money [in order to buy those bonds] in the first place [unlike everyone else]….but I won’t tell anyone. Someone also told me that when you return the money to the US Treasury it actually lowers the “implied” interest rate ultimately paid by the US Treasury. I really do not know what “implied interest” means but it sounds really good. And it must be great if you’ve decided that it is the right thing to do because you are so smart.
It has also been suggested to me that the Federal Reserve may also own my mortgage. That is so cool. Could you use that amazing machine of yours and send me some money to pay it off? Or maybe there is just a giant shredding machine at the Federal Reserve too? How about slipping my mortgage through the teeth of that thing and I’ll be in a much better financial position?
While you are at it I also have a “boatload” of a balance on my VISA bill. Could you please print some money for this bill too? And, sorry to say, both of my kids owe 6 figures on their student loans. It would sure be helpful if you could load some more paper into the tray of that “printing press” for me. BTW…I have some extra green paint from our home remodel that I could forward to you…for…you know…to color the paper. I’ll accept your thanks, for my modest gesture, in advance.
I know that you will take care of these tasks for me because you are so nice and so smart and so sympathetic. I saw you on television this past year trying to help a couple of ex-con felons get some work. Hey…they really don’t get much better than you Ms.Yellen. And “hob-nobbing” with the common folk? If I did not know better I’d say you were a politician. A really good one.
Anyway, the other day my brother in-law suggested to me that all of this money printing could lead to something called a MORAL HAZARD. I don’t know what that means either but it didn’t sound very good. He is usually so cynical anyway. I just ignored him.
So, Ms. Yellen, don’t you stop this money printing anytime soon. Just erase that thought from your mind just like you can simply erase away all my financial worries with that great machine of yours. We, the ignorant public, are so relying on you. As we see it there is just no downside to any of this money printing.
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We are in for a global reset.
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My puppy died late last fall
He's still rotting in the hall
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Mom says puppy's days are through
She's gonna throw him in the stew
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Dead puppies
QE = Question Everything... Everything.
To the Honorable Mr. Yellen,
If QE is such a success, why does anyone pay taxes?
The government can simply create debt it never expects to repay, at negative interest rates. It's a miracle...
Except that no one believes that shit, do they?
Yellin and the FED have not stopped QE. What the fuck do you call Belgium and Japan buying up all the UST debt?
All the while talking out of her ass that the FED isnt still monetizing.
Yemen's capital is about to fall as major seaport, airport & oil terminal were just seized by Al CIAda & Moshe Mos-Sad, bitchez.
Look for some bizarre false flag shit to go down.
They'll probably make some fantastic movie (/s) about it soon, like Zero Dark Thirty; The Killing of Tim Osmond, or American Sniper; Killing Women & Children Civilians for Fun & Profit.
b of p's-true. go to tax receipts, guv expend. then bonds issued and buyers quantity and who. after primary dealers, which in itself is questionable, then who is mopping up the rest? billions.
ok - pensions, ect, on and on, but overbid and where is that coming from? my guess is unlimited backing behind the scenes thru secret conduits and hence qe.
q.e. question everything(above) is fucking right.
this whole money creation thing really should piss every working person off to an extreme max!
it is criminal. it is fucking theft. ultimately theft of labor and time.
guess, in a funny way i wish i didn't know all about 1913-2015...
Yes and well $500 Billion yearly of principal return which needs to be reinvested, keeps QE alive and well.
deleted
I could spend about 100% MOAR if I didn't have to pay taxes!! Everyone's paying AT LEAST 50% of their income (working folk anyway) when you add up all the income, sales, property, gas taxes, hidden taxes and the myriad of fees and licenses. So, its like doubling of your income or more if they printed the governments tax reciepts!! BULLISH!!
Plus 10. Dr. Demento.
They didn't stop printing!!
They just moved it ALL to Japan, they've even outsourced their QE to another country
Or they just said they stopped printing and really didn't. Who would know? All we have is the Fed's word on how much fiat they have created both printed and digital. They just won't tell us the truth anymore (not like they ever did tell us the truth).
She's a banker isn't she? Then arrest her. Don't let her get away.
No she's a professor pretending to be a banker, and doing a very poor job at it (the acting part). I've seen better acting in porn.
and cross-dresser
and dominatrix
and....
Okay, my tribe will start printing then...
tick tock motherfuckers...
Another anti-Semite exposed.
another troll exposed
Exactly. Why don't those types get banned around here?
The louder I hear someone yell "anti semite", these days the more I think that particular poster is an avowed racist, Zionist, Neocon asshole who would like nothing more than to see all brown people on the Earth exterminated.
Anyone else see the hypocrisy and double standard on "racial discrimination"?
Nobody uses the term ' MORAL HAZARD ' anymore. We've evolved into something far more grotesque .
Moraless..
Great piece. Why doesn't the lame stream media ask questions like we do?
Oh right. They are paid not to notice.
I don't think they stopped or will stop.
you just think you're kidding. qe will never end.
that's what Zimbabwe thought
and probably Weimar Germany also
and - ad infinitum......
Simple.
When the wool is over your eyes, QE is good.
When they're afraid you might be seeing things clearly, they raise rates.
So, QE IS GOOD...
...FOR THEM.
For 6 years I've been thinking of the Moral Hazard when it comes to banks and 2008-2009. We should know by now the banks and there owners have no morals. Its only someone else that should take the high ground, show good character, always pay their way.
4 years ago I might have agreed but at this point I'm not so sure. The FED should just send out $50,000 to every person or $100,000 to every family that has a tax return. What the fucks the difference. As I said yesterday professor Bernanke has taught the kids well (student loans). If every country, bank, corporation gets a bailout why not them. Moral hazard indeed.
But for QE and low rates, you Zero Hedge vermin wouldn't even have a job.
You need to be thanking Gentle Ben, not disparaging him.
another moron exposed
hes gotta be trolling right?
How does it feel to suck the government tit,
and live your whole life as a parasite and hypocrite?
you're a fucking idiot. He gave more heroin to an addict to make more money for his dealer.
And that's all he did.
In fact, make QE ubiquitous - give everyone their own money printer - all problems solved - wipe out hunger worldwide - wipe out poverty worldwide - good God ! the HOLY GRAIL !
It sure isn't letting the price of gold rise.
Just making billionaires out of multi millionaires.
QE till WWIII....carry on.
The Fed QEs until the dollar is worth 0.
Transfer wealth is the name of the game.
They are not stopping QE. They will own everything except what they offload onto taxpayers or MyRA accounts on the road to destruction of the Federal Reserve Note.
Throw in an orchestrated stock market crash and a "failed" bond auction or two until our overleveraged asses are begging for more.
Hedge Accordingly.
We live in a time where the abnormal is normal. Normally if we print piles of dollars the currency should decline against other currencies. But if the world is printing money then all currencies are in the same boat. Normally, Gold would counterbalance this and rally as a hedge, but gold has been turned into a fiat currency by allowing it to be traded as paper (the etf's). So, in this abnormal-normal time debt doesn't seem to matter, the fed could really just forgive the treasury debt and wipe it off their books. While we're at it why not forgive the student loans and mortgage debt and why are we paying taxes or even working for a living? Just print money and give it away until we're all rich. . . . someone please shoot me.
Ping pong inflation from the Captain.
Captain Kangaroo with Mr. Moosehttp://m.youtube.com/watch?v=SSpPyTNSlTU
Anything is possible if you just BELIEVE! Thank you Uncle Ben and Mr. Yellen for QE infinity. Just because the majority pretends that the delusion is there doesn't make it real.
https://www.youtube.com/watch?v=r2pt2-F2j2g
Why stop now?
No one with an IQ greater than their shoe size believes that they will "stop" not possible. The un-fed printing press is the market, all the wolves suck it's teet!
So rest easy there ain't no stopping it now, it has morphed into a leviathan! All consuming until it eats it's self to death.
Theres still so many more Seniors to be thrown under a bus!!!!!!!!!!.
Mezzanine always comes first in the tranche of bullshit.
its been said before but if its so great - if deficits dont matter - why not cut everyone a check for 100k?
Because Obama has been running our country as a broken negro whore. Thank goodness he has a Hawaii property funneled through the taxpayers expense.
Like any other central bank when it takes its foot off the QE pedal they turned a corner and now it is down to the banks to create the liquidity through lending hiding it from in your face counterfeiting.
Here is the big question and it is really simple to understand. If the FED needed to create 80 billion MOM to keep the economy going can the banks aschieve the same through lending?
If not and I don't believe they can then QE will be back on the menu soon.
The liquidity they injected went 2 ways by the way, one into elites bank accounts (so they got richer) or drained out of the economy because imports are so much cheaper. Now where you wanted to keep it was circulating in your own economy maxing the numbert of hands it passed through but cash rich corporations ensured they would fleece the punters.
The dumb sheep do not have a clue!
So as the binds have been acting lately as the Atlanta fed GDP hit zero bounced and rolled over for another zero wanting to get recessionary as the short end not inky flattened the yield curve but attempted a recessionary jacking up and I saw Japan doing it too in last week or so... They got kind of smacked down and it wasn't but yesterday when I saw 30 year yields in their own rising.... As 30 years when not falling have usually risen in a group till the fives and 2 and sometimes 10's got sparky last week.
But as say the dollar get perky due to international debt forces besides today's attempted sell off.... The dollar is getting back up to highs again and as the QE in some places the failed attempted in others the strong dollar is counter acting all the stimulus and actually acts as a tightening on the countries trying to stimulate so as to counter act the policies anyway.
And that's hardly the tip of the icebergs of blacks swan tidal waves.
It's 3 AM in the Ghetto. I love dark comedy. Yes, that was a pun.
http://m.youtube.com/watch?v=F3c_-dde-wo
Need to clean my cashe. Repeat post.
"QE", based on its definition has never stopped! They just call it "Principal Payments." Purchase of MBS continues by the billions on a monthly basis. With a balance sheet of 4.5 trillion, you can imagine what the principal payment is. Fed Minutes:The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. This policy, by keeping the Committee’s holdings of longer-term securities at sizable levels, should help maintain accommodative financial conditions. Wiki: A central bank implements quantitative easing by buying specified amounts of financial assets from commercial banks and other private institutions, thus raising the prices of those financial assets and lowering their yield.
Digital money is so much easier and cheaper to produce. It costs virtually nothing to add zeros into a database. And it's 100% trackable.
You all have a nice evening.
QE, like medicine, is appropriate in small doses.
Well, if you don't want the Peter Schiff, emotional teenage girl answer, then it's that maybe QE was "good" (i.e. required) at one point, but it's no longer good or required. Also, maybe it was never good or bad, but something in between. Or, it's the "escalation of commitment" heuristic "sunk cost fallacy". There are other possibilities, too. Leave it to ZH to appeal to emotions with a false premise.
Check this out.....
http://www.mamkschools.org/site_view_announcement.aspx?id=16e3e2d2-fda8-...
Tut tut, these are precisely the kinds of questions that only ISIS sympathisers ask.
I understand the word for Governments colloborating with Business Corporations is called Fascism.
What do you call when Central Banks colloborate with a few Banks in a cartel and in turn colloborate with a few Corporations to buy up all productive assets within an economy?
Is that not what is happening in US of the A?
The Colloborating Corporations are in trouble as their business are dying. The colloborating Banks are buying their Bonds in the hope for a turn around. The Central Bank prints more money to give Banks more liquid cash to buy time.
But where does new business is going to come from? who now have more money to spent? The people of USA - No. There are no good paying jobs out there.
The Chinese do not have money to buy expensive US products too. The China Government ensured that when they hoarded the money and distributed only among Chinese Corporations with an eye to challenge US Corporations.
So.... it is all shit now.
I am sure the people in Central Banks know that, and probably have converted their dollars to foreign currency or Gold quietly and now just waiting for US to the A to collapse by itself.
End of QE only means, everyone for himself.
Impeach 535 morons + Criminal-in-Charge for treason, fraud