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QE2 Ends, Bond Rates Go Up

Lord Tammerlain said:
It depends on when the inflation hits of course now wouldnt it
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Indeed but we were already on the roll. The knowledge that QE2 was ending, slowed the ball down some. It wouldn't take much to get it rolling again. QE1 and 2 did nothing for Obama at that.
 
1Perry said:
Indeed but we were already on the roll. The knowledge that QE2 was ending, slowed the ball down some. It wouldn't take much to get it rolling again. QE1 and 2 did nothing for Obama at that.
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Depends on what you mean by nothing

QE1 and QE 2 put a huge amount of money into the economy, at the same time as a large amount of money was being withdrawn. the overall effect was keeping things stable, instead of mass inflation ( the generallly expect result of QE) or mass deflation ( to be expected during a large deleveraging event).

A QE3 is most likely going to happen, as without it the economy will drop off a cliff, with it, inflation will rise, but will not become serious untill after the next election cycle. Politiicians like that aspect
 
Lord Tammerlain said:
Depends on what you mean by nothing

QE1 and QE 2 put a huge amount of money into the economy, at the same time as a large amount of money was being withdrawn. the overall effect was keeping things stable, instead of mass inflation ( the generallly expect result of QE) or mass deflation ( to be expected during a large deleveraging event).

A QE3 is most likely going to happen, as without it the economy will drop off a cliff, with it, inflation will rise, but will not become serious untill after the next election cycle. Politiicians like that aspect
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Let's watch. I'm predicting that if QE3 is enacted anytime soon, gas will be $5.00 and Obama is history.
 
1Perry said:
Let's watch. I'm predicting that if QE3 is enacted anytime soon, gas will be $5.00 and Obama is history.
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I predict that if QE3 is not enacted the US economy tanks and Obama is history

With QE3 the negative effects could be pushed to past 2012 and people will feel that the economy is doing ok and Obama gets relelected
is
 
Perry, weve been over this extensively. Without QE, theres simply no way for the gubmint to pay for its obligations at a low enough rate.
 
ZIRP4EVA said:
Perry, weve been over this extensively. Without QE, theres simply no way for the gubmint to pay for its obligations at a low enough rate.
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I don't care how many times you've gone over it. Much of what the government doled out was not their obligations.
 
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xpiher said:
Gas isn't as high as it is now just because of inflation.
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No, of course not. All the money that the Fed plowed into the markets had to be put somewhere.
 
1Perry said:
No, of course not. All the money that the Fed plowed into the markets had to be put somewhere.
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Most of QE1 and QE2 was used to buy other corps and for reserve build up. Its not even circulating in the economy.
 
xpiher said:
Most of QE1 and QE2 was used to buy other corps and for reserve build up. Its not even circulating in the economy.
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Nice that we gave billions for corporations to put under their mattresses. Yeah we likely need to give them billions more.
 
1Perry said:
No, of course not. All the money that the Fed plowed into the markets had to be put somewhere.
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Please show that increased bank reserves have flooded the commodity market.

This should be cute.
 
Goldenboy219 said:
Please show that increased bank reserves have flooded the commodity market.

This should be cute.
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Of course reserves haven't. They then would not be reserves would they? Billions of the dollars Bernie and Timmy has printed are not in reserves though.
 
1Perry said:
Of course reserves haven't. They then would not be reserves would they? Billions of the dollars Bernie and Timmy has printed are not in reserves though.
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Naivety for our financial system will not help you win any arguments regarding the subject.

The Fed does not print money, they simply credit bank(s) accounts at the Fed which in turn allows them (banks) to loan out money for which can be redeemed as cash.

If a bank gets low on vault cash, they can request more specie from the Treasury (who print he money).
 
Print is a term used all the time even if it's not technically correct. Since you have resorted to technicalities to try and make a point, we'll assume the point has been accepted.
 
1Perry said:
Print is a term used all the time even if it's not technically correct. Since you have resorted to technicalities to try and make a point, we'll assume the point has been accepted.
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It's not technically correct, but it's not metaphorically correct either. We're not minting new dollars to pay off the interest on our debt coupons. It's really just not the same on any level.

"Printing money" is an expression used very often by the media, but that doesn't mean you should use it.
 
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To say what they did was done to just pay off the interest on our debt isn't technically or metaphorically correct either. I don't believe it's a common arguement used in the media either.
 
1Perry said:
To say what they did was done to just pay off the interest on our debt isn't technically or metaphorically correct either.
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...good thing that isn't what I said?

1Perry said:
I don't believe it's a common arguement used in the media either.
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Point being, THAT'S what "printing money" is.
 
Jeezy said:
...good thing that isn't what I said?
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O.K., fair enough. Why did you feel it necessary to add just that one thing?

Point being, THAT'S what "printing money" is.
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Others already noted that it was more than that.
 
1Perry said:
Nice that we gave billions for corporations to put under their mattresses. Yeah we likely need to give them billions more.
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I never said we should do it again. I was simply explaining why inflation has not be as steep as it could be.
 
xpiher said:
I never said we should do it again. I was simply explaining why inflation has not be as steep as it could be.
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O.K. thanks, I would agree with that. It's also a great example of why we should not QE3. There is plenty of money out there.
 
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