QE Appears to Work Until It's Obvious it Never Did

Mike Shedlock

Lollipops and Tantrums

The Fed is much like a rotten mother who throws her spoiled brat a lollipop as a reward for a temper tantrum says John Hussman in yet another excellent missive: Is the Fed Promoting Recovery or Desperation?

Mike Shedlock

Mike Shedlock is a registered investment advisor representative for Sitka Pacific Capital Management.

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6 Comments So Far

Blair31 Wrote: Apr 11, 2012 7:23 PM

"Socialism works until you run out of other people's money." Dame Margaret Thatcher.

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SteveandJag Wrote: Apr 11, 2012 11:31 AM

The original purpose of QE1 was to stop the liquidity fall. It did that, The market felt QE2 was not needed so it failed to do what Uncle Ben wanted to do. As to any additional QE's, Uncle Ben has just said no, unless it is needed.

He is still forced to buy huge amounts of Treasuries, being force fed to him by our extraordinary deficits and the idle cash will stay idle, until everything stabilizes and the deficits are reduced.

If they are not, we appear to be in a race with the EU, and the BRICS toward the edge of a cliff where we will all perish.

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Dr_Zinj Wrote: Apr 11, 2012 7:54 AM

Fact: Energy costs have inflated 25% in the past year.
Fact: Costs for food and goods are inflating.
Fact: Pay for all poor and middle class are not keeping up with inflation.
Fact: Most workers are afraid to ask for a raise for fear that they'll be the next ones on the chopping block.
Fact: At this date, it's not the fault of the Bush or previous administrations, it's ALL Obama's fault.

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laurence32 Wrote: Apr 11, 2012 11:13 PM

Fact: All those folks on "fixed" incomes spending inflated dollars that are worth less, eat less;
Fact: Those out of work are spending, or spent, their savings and future prospects look grim.
Fact: Government continues to tax business (and WTP) destroying a once producing/selling nation.
Fact: The government/FED socialists weaking the U.S. to drive it into one world government and one world currency, perhaps called the "bancor"as suggested by the socialist, J. Maynard Keynes.

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Conservative abroad Wrote: Apr 13, 2012 5:45 AM

Fact: We are still bringing in 100,000 LEGAL immigrants a month to compete for those low and middle income wages.

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drfredc Wrote: Apr 11, 2012 4:34 AM

If one looks at QE as a black economic box and tries to explain what it's supposed to be doing, one may find the more plausible notions is QE is all about adding some price to the underground economy to make it roughly on par with it's value if above ground, then 'taxing' it (by the QE amount) and instead of giving that revenue to Congress to waste, the Feds give it to the banks to spread around. As such, it's perhaps not as inflationary and economically damaging as one might otherwise think.

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QE Appears to Work Until It's Obvious it Never Did

Mike Shedlock

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