Economic lesson of the day: "Quantitative Easing"
- Thread starter amirm
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Reminds me of the Carter years after Nixon closed the gold window and imposed price controls. Paul Volclker then raised interest rates to 16-20 pct to cool off inflationary expectations. The missery index was the employment rate + the interest rate. Now everything mirrors the USD/EUR, but the arbiter of bad economic policy has always been the UST bond market. Watch the UST 30 year rate,for clues. Bernanke is playing with fire.
On the bright side..........
It may also be the only quick way to address the currency value manipulation of the holder of the largest chunk of US debt. I see the US benefiting on the agricultural export front with this. How much exactly this will impact trade balance is unclear to me as I am not privy to the economic data.
It may also be the only quick way to address the currency value manipulation of the holder of the largest chunk of US debt. I see the US benefiting on the agricultural export front with this. How much exactly this will impact trade balance is unclear to me as I am not privy to the economic data.
Hi
I am taking a different view from these however... TO me this video is a good example of populism. The problems were extremely serious, more so than many realize. The solutions had to be extreme. with none of them easy to swallow. The financial sector has been allowed for a variety of reasons to be too big and it was indeed too big to fail... I am not sure people realize what failures of banks can cause in an economy , especially one as interconnected as it is now... It was that or Armageddon and it was averted.. We should all be thankful of that .. our ways of life might have been much different has it been otherwise... Hi_Fi would not be even an afterthought..
I have come to take certain things that I do not fully comprehend with a certain distance. Practitioners know that what looks easy for the average Joe, takes a lot of practice, knowledge and discipline ... From Sports to Finances.. To truly understand you must have played the game .. then opinions become much more nuanced ...
This came to me again the past 4 years, I have been exercising regularly and only then did I understood the professional athletes.. Only now do I understand what it takes for anyone to practice a sport, any sport at the highest level .. Well people, it takes a lot .. Most people in relatively good shape can run , jog for a mile at 4~5 mph ...But trying to run at a decent marathoner pace say 9 MPH for 2 mile .. is not given to everyone.. Take a lot of time, serious practice, discipline and often even special DNA ... The Champion marathoners do it for more than 2 hours and more average pace in a good marathon for the winners is 12 MPH !! Try that for half a mile on a treadmill !!!
Same here what happened last 2 years took immensely arcane and specialized skills and had these measures however unpopular and misunderstood as they have been NOT been taken, had the Feds not been headed by someone with a deep and passionate understanding of the mistakes committed during the last great depression.. it is quite possible that our way of life might have been tremendously altered and not for the best ...
I am taking a different view from these however... TO me this video is a good example of populism. The problems were extremely serious, more so than many realize. The solutions had to be extreme. with none of them easy to swallow. The financial sector has been allowed for a variety of reasons to be too big and it was indeed too big to fail... I am not sure people realize what failures of banks can cause in an economy , especially one as interconnected as it is now... It was that or Armageddon and it was averted.. We should all be thankful of that .. our ways of life might have been much different has it been otherwise... Hi_Fi would not be even an afterthought..
I have come to take certain things that I do not fully comprehend with a certain distance. Practitioners know that what looks easy for the average Joe, takes a lot of practice, knowledge and discipline ... From Sports to Finances.. To truly understand you must have played the game .. then opinions become much more nuanced ...
This came to me again the past 4 years, I have been exercising regularly and only then did I understood the professional athletes.. Only now do I understand what it takes for anyone to practice a sport, any sport at the highest level .. Well people, it takes a lot .. Most people in relatively good shape can run , jog for a mile at 4~5 mph ...But trying to run at a decent marathoner pace say 9 MPH for 2 mile .. is not given to everyone.. Take a lot of time, serious practice, discipline and often even special DNA ... The Champion marathoners do it for more than 2 hours and more average pace in a good marathon for the winners is 12 MPH !! Try that for half a mile on a treadmill !!!
Same here what happened last 2 years took immensely arcane and specialized skills and had these measures however unpopular and misunderstood as they have been NOT been taken, had the Feds not been headed by someone with a deep and passionate understanding of the mistakes committed during the last great depression.. it is quite possible that our way of life might have been tremendously altered and not for the best ...
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To Frantz' opening line, I read a great article on this once. It said that the typical cure for what we faced was a 6 point interest rate drop to rejuvenate the economy. Problem? At the time, interest rates were around 4% so there even if you took it down to zero, it wasn't enough. And indeed, that is what the Fed did and sure enough, wasn't enough.
That is the risk, for sure. But "we" have chose to trade the devil we have for the devil that might be.
Pesky it is brother, but trust me, it ain't fatal. It almost always spurs domestic production which means jobs and eventually stabilization in trade thus prices. Japan may not be able to export it's way out of its doldrums but if there is a country that can, IMHO it's yours.
Pesky it is brother, but trust me, it ain't fatal. It almost always spurs domestic production which means jobs and eventually stabilization in trade thus prices. Japan may not be able to export it's way out of its doldrums but if there is a country that can, IMHO it's yours.
How much of all this is relatied to an aging population (Japan and USA)?
I don't see it so much as a population/demographic issue but rather a demand issue. Korea and China have taken huge chunks out of Japan's cash cows, electronics, automobiles, industrial equipment. Nobody can mach the US in staple foods.
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