Quantitative Easing and the Market, Does Anyone Know What is Going On?
Posted by M. C. on June 23, 2013
Bernanke says the Fed will stop buying bonds (ie slowing the printing presses) and the market bails. What does this mean?
My first thought is that Wall Street has no confidence in near future economic recovery. For sure there is great dependence in government safety nets and bailouts. All at the expense of the taxpayer. Make no mistake fiat money is a tax. Inflation lowers the value of what little money we have, in essence taking buying power away.
As I recall free government money was the major cause of the housing crisis.
Is there not still a $Trillion or so in corporate money socked away in foreign banks due to our onerous tax structure?
Could we have shortened the downturn and avoid all the “easing” and general debasement of our currency if these taxes were eliminated and corporations could bring the money back? There is at least a years worth of bond buying sitting overseas waiting to be used.
Could much of our current agony been eliminated by cessation of this one class of government theft?
Or am I wrong and government is on the fast track to restoring the American Dream?
Be seeing you
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This entry was posted on June 23, 2013 at 10:14 am and is filed under Uncategorized. Tagged: Bernanke, Bond buying, Fed, Quantitative Easing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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Doug Rowley said
When the Fed stops “buying” government bonds rates will have to rise in order to sell them to anyone else. This staggering build up of debt will eventually lead to very high inflation. But first I think there will be deflation in optional spending. Things you must pay for like food, insurance, and taxes are inflationary now. The latest trick is the “chained” CPI. As Mark Twain said, “There are lies, damned lies, and statistics.”
Silver Price said
The only way the job market will improve, would be for the corporations to bring manufacturing back to the U.S. All this bond buying is making our dollars worth less.
Shelton Maldonado said
The entire concept of keeping the economy functioning is based upon US dollar debasement via the creation of excess money and credit, which is accompanied by departments of government and Wall Street.