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Quantitative Easing Explained


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sounds good! I'll start murderin' first thing tomorrow!
THIS is the problem.Everyone wants to do something, but they want to wait till tomorrow to get around to it.
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THIS is the problem.Everyone wants to do something, but they want to wait till tomorrow to get around to it.
shows how easily you're fooled. I murdered three prostitutes right away.time to put your balloons where your mouth is old boy.
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the only point in this video that hadn't occurred to me: dealers front-running the fed. I mean, the rest of it was obviously shown to be pretty idiotic in light of today's events.

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Yeah but, as the video so hilariously points out, prices of certain things are UP since a year ago. Therefore, inflation can't possibly be very low. If inflation were very low, then those prices on average would increase but at a slow rate.Wait, I need to think for a little bit.

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http://online.wsj.com/article/SB2000142405...1054770556.htmlhttp://www.ft.com/cms/s/0/8cef39ca-f24c-11...144feab49a.htmlFor members of the reality-based community who care about data more than random idiot #448597497's youtube video...
What happens if we keep seeing stagflation or deflation on consumer goods, yet have hyper-inflation on commodities and energy?
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What happens if we keep seeing stagflation or deflation on consumer goods, yet have hyper-inflation on commodities and energy?
This confuses a lot of people. Most commodities are priced in USD world-wide so as the dollar weakens vs. other global currencies, the prices of these commodities MUST rise in order to keep their relative value, but this is NOT an indicator of inflation within our own economy. It indicates nothing other than USD debasement, which everyone knows is going on anyway. However, QE2 was well-telegraphed (pretty clearly TOO well telegraphed, based on the way the bond market's been trading, i.e. so many people were on board and got caught offsides, which is easy to do in November), and the market had it mostly priced in. At some point, we really must see some inflation within our own economy with all those dollars swimming around. A lot of forecasts I see from people I respect call for decent growth by Q2 2011. If policymakers are able to combine growth next year with some productive austerity measures, the dollar should find footing.
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This confuses a lot of people. Most commodities are priced in USD world-wide so as the dollar weakens vs. other global currencies, the prices of these commodities MUST rise in order to keep their relative value, but this is NOT an indicator of inflation within our own economy. It indicates nothing other than USD debasement, which everyone knows is going on anyway. However, QE2 was well-telegraphed (pretty clearly TOO well telegraphed, based on the way the bond market's been trading, i.e. so many people were on board and got caught offsides, which is easy to do in November), and the market had it mostly priced in. At some point, we really must see some inflation within our own economy with all those dollars swimming around. A lot of forecasts I see from people I respect call for decent growth by Q2 2011. If policymakers are able to combine growth next year with some productive austerity measures, the dollar should find footing.
OK, that makes sense. So is that the reason we remove commodities and energy from the CPI?
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OK, that makes sense. So is that the reason we remove commodities and energy from the CPI?
that's part of it, but the main reason the core reading removes food and energy is because their prices are really volatile and introduce a bunch of noise into the month on month numbers.
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A pretty good article about the Fed and it's inflationary and anti-inflationary tools:http://reason.com/archives/2010/11/18/goin...-fractions-of-a
this is pure spin. why he claims "wall street failed to respond" is totally beyond me. stocks are the summation of a huge mixed bag of economic indicators, the biggest of which (in post-QE2 times) has been Ireland. this is ALMOST as idiotic as citing foreign leaders from countries like China and Germany. China obviously pegs its currency artificially low and Germany makes a ton of money in trade because of the shared nature of theirs (imagine how bad it would be for them if the EU splits?). "growing dissent in the fed" equates to ONE dissenting voice, hoenig, who has not changed his position on any of this for a very long time. hilariously, the author even attempts to claim QE2 is on the "verge" of failing, as if we've had sufficient time to gauge the impact at all. literally everything that has happened so far is a reaction to the news, not a reaction to $600 billion entering the economy--because it hasn't, yet. the idea that IOR @ 25bp is preventing a recovery seems ridiculous to me. it's pretty widely accepted that inflation post-meltdown has been around 1% annually, so I really don't get why this guy is trying to convince us that the offer of parking money at the fed for a .75% loss in spending power is enticing enough to slow the recovery. it's not, and it really isn't.
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  • 3 weeks later...

I had a meeting with some higher ups at JP Morgan today. They are pretty convinced there is going to be a QE3 that will start April/May of next year and that the Fed won't touch rates until potentially 2013 now. This would be good news for the stock market, bad news for treasuries. But it's all artificial.

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I had a meeting with some higher ups at JP Morgan today. They are pretty convinced there is going to be a QE3 that will start April/May of next year and that the Fed won't touch rates until potentially 2013 now. This would be good news for the stock market, bad news for treasuries. But it's all artificial.
so now we're pushing the recovery out a full two years. jesus christ, what a fucking mess.
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