This is all about fund “transfers” and puts the collective private debt of banks onto the people. It happened under Obama with Ben Bernanke, but they “unwound” the policy at the right time. We will see the same thing here, no doubt.
They unwound the TARP money, but they still had almost $4 Trillion (yes, with a T) in QE money when all this started. And rather than unwind it (which would have hurt banks), they chose to keep the bonds and raise interest rates (which helps the banks). They should have unwound the QE before raising rates, but they just couldn’t force themselves to do the right thing. So .. now we get $4 more trillion in QE infinity. This cannot end well.
I don’t know how all this ends. The idea was to try to create inflation. But the more money they create, the more deflation we actually get.
You could create all the inflation you wanted in a day by raising the minimum wage. The inflation index looks almost exclusively at things a minimum wage person might buy: a dishwasher, food, gas, clothing, rent ( but not a house). Of course those things can’t go up in price unless our lowest paid has the money to buy those things. The Feds are idiots and pretend like they can’t see these things.
So what we’ve had so far is a series of ever increasing bubbles where we blow up assets. That what continues to get overpriced, because asset inflation is not included in the inflation number (it’s considered “good” inflation). Shoot it to the moon.
All we do is make the banks richer and richer, at our expense. We’ve created oligarchs, and that will only get worse. Eventually, the Feds will just dump all their now-worthless assets in the garbage and forgive all the bankers. They’ll be richer than ever. But we’ll stay a cash based society. It greases the wheels of transactions large and small.
It’s not true. I battled this all last week. Based on one fricking article? If Trump had been made the head of the most powerful organization on the planet, don’t you think that news would be all over the place?
And nationalizing the bank’s debt is horrible. It means what used to be the bank’s debts are now our (taxpayers) debts. And it’s the banks that own the Fed. The banks have managed to offload their debt on to us, and based on one crap Washington post article (that’s where this article originated) you think it’s a good thing. Sad.
Well, we had some glory days towards the end of the Great Depression thru sometime after WWII where we got a lot of bang for the buck for infrastructure programs. The sidewalks in the house I grew up in were built with those public works programs, and I see signs regularly at parks and such saying they were built with that money. So it can work.
Ever since then, you are right, “infrastructure” has been a code word for “money grab” and we’ve seen very little benefit from it. It would be awesome if Trump could get that money and use it properly. If anyone knows how to make that money provide tangible benefits for generations, it is him. But how to keep a Pelosi from giving it all to her friends for solar boondoggles, misguided “green” projects, and gold plated bridges to nowhere? That is the problem.
Right again.
This is all about fund “transfers” and puts the collective private debt of banks onto the people. It happened under Obama with Ben Bernanke, but they “unwound” the policy at the right time. We will see the same thing here, no doubt.
They unwound the TARP money, but they still had almost $4 Trillion (yes, with a T) in QE money when all this started. And rather than unwind it (which would have hurt banks), they chose to keep the bonds and raise interest rates (which helps the banks). They should have unwound the QE before raising rates, but they just couldn’t force themselves to do the right thing. So .. now we get $4 more trillion in QE infinity. This cannot end well.
This is the answer. Fed’s “assets” just exceeded $5T. This is the bubble of all bubbles. Press F for future generations.
“Infinite cash”.
I guess if the value of the dollar drops to a wheelbarrow full for a loaf of bread, then yeah, it didn’t end well.
Do you think unfettered easing accelerates us toward a cashless society?
I don’t know how all this ends. The idea was to try to create inflation. But the more money they create, the more deflation we actually get.
You could create all the inflation you wanted in a day by raising the minimum wage. The inflation index looks almost exclusively at things a minimum wage person might buy: a dishwasher, food, gas, clothing, rent ( but not a house). Of course those things can’t go up in price unless our lowest paid has the money to buy those things. The Feds are idiots and pretend like they can’t see these things.
So what we’ve had so far is a series of ever increasing bubbles where we blow up assets. That what continues to get overpriced, because asset inflation is not included in the inflation number (it’s considered “good” inflation). Shoot it to the moon.
All we do is make the banks richer and richer, at our expense. We’ve created oligarchs, and that will only get worse. Eventually, the Feds will just dump all their now-worthless assets in the garbage and forgive all the bankers. They’ll be richer than ever. But we’ll stay a cash based society. It greases the wheels of transactions large and small.
Lack of inflationary pressure to cajole a negative Fed funds rate maybe.
Talk of a Fed-Treasury merger is ridiculous on its face and obfuscates the events that created the Fed in the first place.
It’s not true. I battled this all last week. Based on one fricking article? If Trump had been made the head of the most powerful organization on the planet, don’t you think that news would be all over the place?
And nationalizing the bank’s debt is horrible. It means what used to be the bank’s debts are now our (taxpayers) debts. And it’s the banks that own the Fed. The banks have managed to offload their debt on to us, and based on one crap Washington post article (that’s where this article originated) you think it’s a good thing. Sad.
Is there any possibility that Yahoo--Trump haters of longstanding--might have been fear/smearmongering with that quote?
Any chance at all?
It’s originally from a WaPo article, if that helps you decide.
Very helpful. Nobody hates Trump more than WaPo--not even Buzzfeed.
"Infrastructure" is code for giving billions of dollars to Democratic Party special interests.
Well, we had some glory days towards the end of the Great Depression thru sometime after WWII where we got a lot of bang for the buck for infrastructure programs. The sidewalks in the house I grew up in were built with those public works programs, and I see signs regularly at parks and such saying they were built with that money. So it can work.
Ever since then, you are right, “infrastructure” has been a code word for “money grab” and we’ve seen very little benefit from it. It would be awesome if Trump could get that money and use it properly. If anyone knows how to make that money provide tangible benefits for generations, it is him. But how to keep a Pelosi from giving it all to her friends for solar boondoggles, misguided “green” projects, and gold plated bridges to nowhere? That is the problem.
I’d say so. Also we are become more free by each coming day.