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Quantitative easing, does it lead to economic collapse? by 2.5
Started on: 02-24-2021 12:35 PM
Replies: 7 (228 views)
Last post by: FriendGregory on 03-01-2021 07:55 PM
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Report this Post02-24-2021 12:35 PM Click Here to See the Profile for 2.5Send a Private Message to 2.5Edit/Delete MessageReply w/QuoteDirect Link to This Post
The fed declared unlimited quantitative easing, indefinitley, recently?
What does this actually mean? I'm not an expert.

https://www.fool.com/invest...uantitative-eas.aspx
"Unlimited quantitative easing should help calm markets
The Fed announced that it will continue its asset-purchasing program "in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy."

In other words, the Fed isn't committing to a specific amount of asset purchases. In the wake of the financial crisis, the institution's balance sheet grew to more than $4 trillion thanks to three rounds of quantitative easing, so it's fair to assume that the central bank could end up purchasing far more than $700 billion worth of assets in its response to this crisis.

In addition, the Fed said that the unlimited asset purchases will include commercial mortgage-backed securities; the previous plan only included residential agency mortgage-backed securities.

There are two halves of the equation when it comes to ensuring the U.S. economy will keep operating during uncertain times like these -- fiscal policy and monetary policy. The Fed just made its biggest move yet to smooth the road ahead and calm investors' fears on the monetary side. If the widely anticipated third (and largest) stimulus bill makes its way through Congress in the next few days, that would be a massive relief on the fiscal side."


Before that they began more of it in 2020
https://www.cnbc.com/2020/0...-easing-program.html

March 2020


This is from 2013:


So,is the question... is there "slack in the line"?

What is QE?

More links in the description on youtube
https://www.youtube.com/watch?v=rDtVABEzcy4

[This message has been edited by 2.5 (edited 02-24-2021).]

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Report this Post02-24-2021 01:10 PM Click Here to See the Profile for rinselbergClick Here to visit rinselberg's HomePageSend a Private Message to rinselbergEdit/Delete MessageReply w/QuoteDirect Link to This Post
Quantitative Easing, does it lead to economic collapse?

That is the question.

It's been 11 months since the dates of the two articles that were posted about the Fed declaring that they were in Quantitative Easing mode.

So here's a partial answer:
 
quote
In the last recorded instance of Quantitative Easing, the economic collapse that ensued did not occur until at least 11 months after the inception of the policy.

Unless what we're looking at today is (already) "economic collapse."

But that raises the issue of Causation vs Correlation. (Not to be confused with the well known judgement by the Supreme Court in Causation vs Correlation; 1903.) If this is already economic collapse, is it because or partly because of the Quantitative Easing that was announced 11 months ago? Or, are the reasons for the current economic collapse entirely separate from what the Fed has been up to in the Quantitative Easing department?

That's as far as my thinking takes me at the moment.

[This message has been edited by rinselberg (edited 02-24-2021).]

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Report this Post02-24-2021 01:16 PM Click Here to See the Profile for 2.5Send a Private Message to 2.5Edit/Delete MessageReply w/QuoteDirect Link to This Post
 
quote
Originally posted by rinselberg:

Quantitative Easing, does it lead to economic collapse?

That is the question.

It's been 11 months since the dates of the two articles that were posted about the Fed declaring that they were in Quantitative Easing mode.

So here's a partial answer:
Unless what we're looking at today is (already) "economic collapse."

But that raises the issue of Causation vs Correlation. If this is already economic collapse, is it because or partly because of the Quantitative Easing that was announced 11 months ago? Or, are the reasons for the current economic collapse entirely separate from what the Fed has been up to in the Quantitative Easing department?

That's as far as my thinking takes me at the moment.






I suppose its how much they do it, where they limit it, and what other wildcard factors come into play.
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Report this Post02-24-2021 01:35 PM Click Here to See the Profile for 2.5Send a Private Message to 2.5Edit/Delete MessageReply w/QuoteDirect Link to This Post

2.5

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Hmm

A pre covid vid about it.
Financial economy vs real economy.



The income connection....the reason they want to raise the minimum wage?
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Report this Post02-24-2021 01:44 PM Click Here to See the Profile for 2.5Send a Private Message to 2.5Edit/Delete MessageReply w/QuoteDirect Link to This Post

2.5

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Posted: Feb 23 2021


“We’ve been living in a world for a quarter of a century where the pressures were disinflationary,” he said. “Inflation dynamics do change over time, but they don’t turn on a dime.”

"Powell said fiscal stimulus is not likely to create persistent or large increases in prices."

“If it turns out unwanted inflation pressures arise, and they’re persistent, we have the tools to deal with that,” he said.

[This message has been edited by 2.5 (edited 02-24-2021).]

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Report this Post02-24-2021 09:12 PM Click Here to See the Profile for sourmashSend a Private Message to sourmashEdit/Delete MessageReply w/QuoteDirect Link to This Post
They did QE1 in what the 2007 time frame? Ben Bernanke and his "helicopter money".
When they announced QE2 they officially stated they wouldn't monetize the debt printing, and they immediately monetized it.

It was then that people like Stephen Leeb and Gerald Celente were saying it can never end. QE to infinity was the prediction. We are officially there...until the Great Reset, anyway.

Prepare.

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Report this Post03-01-2021 08:11 AM Click Here to See the Profile for USFieroSend a Private Message to USFieroEdit/Delete MessageReply w/QuoteDirect Link to This Post
Inflation is Coming.
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Report this Post03-01-2021 07:55 PM Click Here to See the Profile for FriendGregorySend a Private Message to FriendGregoryEdit/Delete MessageReply w/QuoteDirect Link to This Post
 
quote
Originally posted by USFiero:

Inflation is Coming.

The remaining question is, significant inflation or hyper inflation.
Just Saturday I was recommending my wifes co-work to get back in the market, I expect it to only climb due to money printing based inflation.
He has pulled out and into cash waiting to go in when the market crashes.
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