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Will QE3 work?

 
 
Reply Wed 12 Sep, 2012 10:36 pm
Do you guys think the QE3 will really help US boost the economy?
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Type: Discussion • Score: 1 • Views: 1,482 • Replies: 9
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Finn dAbuzz
 
  1  
Reply Wed 12 Sep, 2012 10:59 pm
@jeffyang,
In the short term it will have a meager positive effect, but all of these QE's have a longer term negative effect: Inflation.

But let's kick the can down the road.

Everyone in power now will have retired when the **** hits the fan and/or will have enough protected wealth to see them through the fall of America.
hawkeye10
 
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Reply Wed 12 Sep, 2012 11:21 pm
@jeffyang,
Quote:
will QE2 work?


answer according to almost all of the alleged experts is "no".
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oralloy
 
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Reply Thu 13 Sep, 2012 05:50 pm
@Finn dAbuzz,
Finn dAbuzz wrote:
In the short term it will have a meager positive effect, but all of these QE's have a longer term negative effect: Inflation.

But let's kick the can down the road.

Everyone in power now will have retired when the **** hits the fan and/or will have enough protected wealth to see them through the fall of America.


Inflation will only hit us if we don't soak up the excess cash when the economy improves.

If China insists on pegging their currency to ours though, inflation will hit them pretty hard (the last two rounds of QE saw a catastrophic inflation rate in China).
jigneshjsoni
 
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Reply Thu 13 Sep, 2012 06:23 pm
@jeffyang,
How can you estimate, what will be the price rise, when QE is announced ?
I have seen that when QE is announced, gold and oil prices rise. How to calculate immediate effect of QE on gold and oil prices ?
Is it automatically related to amount of money flowing in economy ? If QE of 500 billion dollars is announced, how much percentage will this 500 billion dollars be of current amount of money in economy ?
Can we just increase the prices of commodities, by that much percentage as an additional inflation ?

Thanks
Finn dAbuzz
 
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Reply Sat 15 Sep, 2012 01:08 am
@oralloy,
You're assuming the economy will approve.

Vote Obama and watch inflation soar.
roger
 
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Reply Sat 15 Sep, 2012 01:26 am
@jigneshjsoni,
Those are excellent questions. There will be more people willing to make guesses than there will be people to make reasonably accurate predictions.

My own guess is that prices of oil, gold, and other commodities will indeed increase, but not in proportion and slowly rather than immediately.

That's a guess; not a prediction.
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roger
 
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Reply Sat 15 Sep, 2012 01:29 am
@Finn dAbuzz,
What you should keep in mind is that the stock market indexes are not always in sync with the real economy. I am willing to assume the markets will like it, at least for a while.
hawkeye10
 
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Reply Sat 15 Sep, 2012 01:38 am
@roger,
roger wrote:

What you should keep in mind is that the stock market indexes are not always in sync with the real economy. I am willing to assume the markets will like it, at least for a while.


seems to be the point.....prop up the markets with public debt so that all parties dont need to have an uncomfortable conversation with the masses about how broken the economy is and why none of the elites have ever been honest and forthcoming about this. this is the dynamic of being caught in a lie, where the end result is certain doom but we delay getting there as best we can.
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Finn dAbuzz
 
  1  
Reply Sat 15 Sep, 2012 01:44 am
@roger,
Oh yes they love it, and I don't view the DOW as an unquestionable indicator of the state of our economy.

I will profit by it's focus in the short term but I am increasing my holdings in gold in the meantime.
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