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What QE seems to mean

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logrfood

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Discussion starter · #1 ·
Seems to me that now that US owns more of its debt than China and will continue to buy its debt ala QE2-15 or whatever

If this manages to spark inflation, according to Moe Ansari,of Compak Asset Management, the flight from bonds bubble plus and increase in circulating dollars means a flight TO

equities, precious metals, and some real property/commodities.

This means BIG BULL RUN coming. If history means anything, it will be the longest, most dramatic bull run in history.

Just a thought.

Log
 
#6 ·
logrfood said:
Seems to me that now that US owns more of its debt than China and will continue to buy its debt ala QE2-15 or whatever

If this manages to spark inflation, according to Moe Ansari,of Compak Asset Management, the flight from bonds bubble plus and increase in circulating dollars means a flight TO

equities, precious metals, and some real property/commodities.

This means BIG BULL RUN coming. If history means anything, it will be the longest, most dramatic bull run in history.

Just a thought.

Log
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When Japan borrowed and spent to stimulate their economy following the 1990 crash of their real estate bubble, they did buy their own debt. But they did not build a sustained recovery. They blew one debt bubble after another and ended up with a broken economy and further in debt.

The Keyensian economic theory of government stimulation does not work.

Continued printing of US dollars by the Fed will result in short term bubbles, not a sustainable recovery. There will be no bull market.
 
#8 ·
plantguy said:
The Fed is a private bank owned by stock holders. Yes the Fed owns a ton of US debt. But the US does not own it's own debt.
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You are correct, the FED is a private entity but in our monetary system it is irrelevant. It doesn't matter whether it's the FED playing circle jerk and buying our debt or the US Treasury the end result is the same.
 
#10 ·
logrfood said:
Seems to me that now that US owns more of its debt than China and will continue to buy its debt ala QE2-15 or whatever

If this manages to spark inflation, according to Moe Ansari,of Compak Asset Management, the flight from bonds bubble plus and increase in circulating dollars means a flight TO

equities, precious metals, and some real property/commodities.

This means BIG BULL RUN coming. If history means anything, it will be the longest, most dramatic bull run in history.

Just a thought.

Log
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logrfood - it's the raw printing of Dollars that is causing a devaluation of the Dollar and yes this will cause an increase in the price of commodities which will mean a increase in the price of just about everything NEEDED ie: food, energy. The problem is with unemployment so high and jobs continuing to leave the country there is no mechanism that will translate into higher wages. Without that what we will soon have here in this country is food, energy that the majority of people cannot afford. The coming commodity ramp is simply going to accelerate the collapse.
Research the Argentina Collapse
 
#11 ·
It all means the destruction and demise of the US $. Period.
As went Rome, so goes the former great USA. Something will take it's place,
but it will be a shell of the former. Maybe it'll muddle it's way through, to some lesser self, but the glory days are over. RIP.
 
#12 ·
It means that we are no longer borrowing the money need to fuel our out of control federal appetite. We are just electronically creating billions of dollars out of thin air, and thumbing our nose at all the bond holder who paid real money for their bonds.

elgin
 
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#13 ·
elgin said:
It means that we are no longer borrowing the money need to fuel our out of control federal appetite. We are just electronically creating billions of dollars out of thin air, and thumbing our nose at all the bond holder who paid real money for their bonds.

elgin
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Its actually far worse than that, in truth QE is a hidden tax. By printing money regardless of what it is being used for, once it is put into circulation it is devaluing the currency already in circulation, making the dollars you have in your bank, ira, 401k etc worth less than they were worth before QE. We have a cute name for it "inflation" which most of the masses think is a supply and demand symptom that causes higher prices. The reality is that the inflation is really an excess money supply created by the FED. More money "created" deflates the value of the existing currency and causes prices to go up.

You worked 40 hrs for your paycheck of $1000 and put it in your savings, 6 months from now due to QE money printing, that $1000 will only have the purchasing power of $800 (20% currency devaluation). So where did the other $200 go ? Well it went to our wonderful government, sort of ....The FED used it to purchase bonds or TBills which the government sold to the FED, then the government takes that money and ****es it away on stimulus, bail outs, foreign aid to countries like Pakistan etc.

So basically we are being taxed every time the FED prints money, but the tax is imposed as "inflation"....which is much more palatable to the masses and can also be blamed on other events, ie bad weather caused a short harvest, trade imbalances etc....

In response to the OP, it is not a matter of "if" QE sparks inflation, QE devalues the dollar, which IS inflation.
 
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