QE3 -- Third Times' a Charm?

[kevsta]

When the Fed stops buying the current deficit with magically-created "dollars", interest rates will shoot through the roof (worse than the 17% under Carter) and we will be hosed. :

Prediction noted.

they won't ever stop.

 

[drewid]

there already is one QE3

(Yup, I thought it was about a ship as well )

 

[balrog666]

No, the average cost of gasoline in the US is under $4, and average retail prices for food have not doubled in the last four years. In the last 12 months, food prices rose by 2%. In the 12 months prior to that, food prices rose 4.6%. In the 12 months prior to that, food prices rose 1%. And in the 12 months prior to that, food prices rose 0.4%. Multiply those 4 years together and food prices increased by a total of about 8.2% over the last 4 years.

Let's stick to facts, please.




Prediction noted.

What is 20 times worse than what?



I'd rather live now than 100 years ago. Standards of living have improved.

Okay ... gas is again approaching $5/gallon and when Iran is nuked, the price of gas will shoot up even more.

The CPI is an out-and-out lie and it has been for the last 30 years.

The dollar now is worth about 2 cents in 1912 value and in about a year it will be worth less than 1 cent. Thanks, Fed.

So would I but that is not the question on the table ...

 

[lomiller]

The CPI is an out-and-out lie and it has been for the last 30 years.

So when the data doesn't support your argument you just invent your own?

The dollar now is worth about 2 cents in 1912 value and in about a year it will be worth less than 1 cent. Thanks, Fed.

And yet people are far better off now, so Thanks Fed!

BTW invested at a relatively modest 8% rate of return, 2 cents in 1912 would net you about $43 today, so once again, Thanks Fed!

 

[psionl0]

And yet people are far better off now, so Thanks Fed!

Just as I thought.

You don't need ingenuity, hard work or good old American know how. All you need for prosperity is a central bank printing money.

 

[Beerina]

Where is gas approaching $5 a gallon in the US? It's a little under $4 currently.

 

[therival58]

“It’s strange, no matter how much money we put into the hands of the people who caused the financial crisis, our economy fails to improve…”

“That is odd isn’t it? We must still not be giving them enough. Let’s give them even more money, as well as promise that we will keep giving them money for the indefinite future.”

I guess the saying here goes "if the system is broke, perpetuate the system."

I never understood the logic of a nation borrowing money from its own central bank and then in addition to being in debt to itself, is forced to pay back the interest owed to itself. What sense does that make? Oh wait, the Fed is not part of the US, my mistake.

 

[drewid]

Where is gas approaching $5 a gallon in the US? It's a little under $4 currently.

To be fair it is approaching $5 a gallon, it just won't get there for a while.

 

[Orphia Nay]

/me types Quantative Easing 3...

No, that wasn't too hard.

 

[kevsta]

Where is gas approaching $5 a gallon in the US? It's a little under $4 currently.

New York?

http://www.nydailynews.com/new-york/gas-prices-new-york-nearing-5-article-1.1160204

 

[kevsta]

* Orphia Nay;8624801 types Quantative Easing 3...

No, that wasn't too hard.

no, that's also about what's involved in the money printing too.

1. place ball bearing on zero key.
2. go down pub.

IMO its just another thinly disguised banks bailout (again)

 

[lomiller]

Where is gas approaching $5 a gallon in the US? It's a little under $4 currently.

Which doesn't have much to do with the Fed

 

[Tippit]

And yet people are far better off now, so Thanks Fed!

People are better off because of massive technology and productivity gains, in spite of the Fed's perpetual looting. This has everything to do with innovation and progress, not the Fed.

BTW invested at a relatively modest 8% rate of return, 2 cents in 1912 would net you about $43 today, so once again, Thanks Fed!

Once again, that is due to the hard work and ingenuity of the American people, not a parasitic institutional counterfeiter, and furthermore, an 8% annualized return isn't modest, it represents the lower bound of equities which have yielded 8-11% annually over long periods of time. These investments carry considerable risk.

 

[ravdin]

I think it will help the housing market to rebound.

Spending unlimited* amounts of money on mortgage debt plus zero interest means that house prices will almost certainly rise in the short term. However, we've had a housing bubble before and creating a new one will not result in long term prosperity. Sooner or later house prices will have to stop increasing, despite the best efforts of the central bankers. At that point all they'll have left are their printing presses.

*$40B per month, for an indeterminate duration.

 

[ehcks]

The dollar now is worth about 2 cents in 1912 value and in about a year it will be worth less than 1 cent. Thanks, Fed.

While current dollars may be 2% as effective as they were 100 years ago, people have more than 50 times as much.

So this is only meaningful for people who put their entire savings in a mattress and cryogenically froze themselves then woke up today. They'd be poor. Too bad.

The value of a dollar decreases because the total number of dollars increases. The only problem is that 80% of each new dollar of income goes to the top 1%. This is not a Federal Reserve problem.

 

[Skeptic Ginger]

“It’s strange, no matter how much money we put into the hands of the people who caused the financial crisis, our economy fails to improve…”

“That is odd isn’t it? We must still not be giving them enough. Let’s give them even more money, as well as promise that we will keep giving them money for the indefinite future.”

It's strange that despite the fact the economy has improved tremendously since Bush left office, the right continues to ignore that fact and pump out the false narrative that, since we don't yet have full recovery, we have no recovery at all.

 

[balrog666]

So when the data doesn't support your argument you just invent your own?



And yet people are far better off now, so Thanks Fed!

BTW invested at a relatively modest 8% rate of return, 2 cents in 1912 would net you about $43 today, so once again, Thanks Fed!

What does the current CPI exclude? Energy, food, and housing costs - the things everyone has to pay for ...

 

[Startz]

What does the current CPI exclude? Energy, food, and housing costs - the things everyone has to pay for ...

The Bureau of Labor Statistics computes many different indices. The main CPI-U does include energy, food, and housing costs.
http://www.bls.gov/cpi/cpiqa.htm

 

[lomiller]

What does the current CPI exclude? Energy, food, and housing costs - the things everyone has to pay for ...

[qimg]http://www.shadowstats.com/imgs/sgs-cpi.gif?hl=ad&t=[/qimg]

So again, if the data doesn't support you just make up new data!

What makes you think your alternate CPI is a better statistic than the actual CPI? (Other than the fact that it fits the narrative you have bought into that is)

 

[Sceptic-PK]

The dollar now is worth about 2 cents in 1912 value and in about a year it will be worth less than 1 cent.

Facts like this in isolation are absolutely worthless.