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MORE "QUANTITATIVE EASING" -- A REALLY BAD IDEA

BlueMax372 2011/08/22 18:17:26

Northwest Florida Daily News, Fort Walton Beach, on more quantitative easing:

Don't be fooled. "QE3" sounds like the name of a British cruise ship. It really stands for Quantitative Easing 3, a money-expansion scheme the Federal Reserve Board is considering to jump-start the U.S. economy. The Fed should drop the idea.

The idea, put more bluntly, is to fix an ailing economy by printing money.

The Fed already has implemented two of these programs: QE1, which began in November 2008 following that September's financial panic, and QE2, which began in November 2010 and ended June 30.

QE1 and QE2 are credited with sparking the modest economic recovery that began in summer 2009. But with QE2's end, the economy is sputtering again.

The problem with quantitative easing is straight out of Economics 101: If you increase the supply of something, its value goes down. In this case, the dollar's value drops, through inflation. That's the reason we've seen rising food and gasoline prices. That's what happened in the 1970s, when the country suffered stagflation -- a stagnant economy plus inflation.

"I've heard rumors recently of a QE3," Mark Calabria, director of financial regulation studies at the Cato Institute, told Freedom Communications. "Fed Chairman Ben Bernanke was in front of the Senate (on June 13) and left open the possibility."

We can argue about the possible palliative effects of QE1 and QE2 as a response to the Great [0bama] Recession, but a QE3 would only further mask the underlying problems in the economy and prolong the malaise.

The Fed's job should be to provide stable money, not one "stimulus" after the next. Real recovery will come only when consumer demand begins to rise and Congress and President Barack 0bama -- or his successor [Please, God?] -- rein in spending and regulations and provide a stable and less-burdensome tax structure for consumers, investors, and businesses.

COMMENT: REAL recovery will commence only after 0v0mit and his merry band of Keynesian dimwits have been consigned to the ash-heap of history.


--The St. Augustine Record, August 21, 2011, p. 2C.

Read More: http://www.staugustine.com

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Top Opinion

  • Cliff 2011/08/22 18:29:55
    Cliff
    +5
    The government printing money is taxation without representation. This needs to be debated in congress and we the people must have some say about it.

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  • Wolfman 2011/08/23 06:28:22
    Wolfman
    +2
    Kiss your 401k goodbye.

    kiss 401k goodbye kiss 401k goodbye
  • S. Gompers 2011/08/23 03:05:03
    S. Gompers
    +2
    Where can I get the contract for selling the bearings for the printing press?

    Fact; every administration has followed Keynesian dimwits for many years and that is not subject to change in the near future.
  • hawk Semper Fi 2011/08/23 02:26:03
    hawk Semper Fi
    +2
    what needs to happen here is we need our money back on the gold standard, this way the fed can't can not print more if they don't have the backing.

    Semper Fi. money gold standard fed print backing semper fi nflated money
  • Curmudgeon 2011/08/23 02:24:36
    Curmudgeon
    This has me worried too, someone should remind the fed that trying to paper over debts they can't handle is making a nasty inflation issue across the globe...
  • Brandon 2011/08/23 02:05:51
    Brandon
    +1
    A fiat currency will always fail, why are we trying to delay the inevitable.
  • GettingBarried 2011/08/23 00:04:17
    GettingBarried
    Wasn't it that renowned economissed Krugman who said the only way to revitalize the economy is by simply destroying the dollar? QE3!!!!
  • Wahvlvke 2011/08/22 23:54:45
    Wahvlvke
    +2
    I'll go with Perry ... treason>
  • BrianD3 2011/08/22 23:23:58
    BrianD3
    +1
    money supply isnt the problem, confidence is the problem. More money in circuation will just lead to inflation AND while inflation TIED to growth is good, you cannot just create the symptom (inflation) and expect growth to follow. ......actually the reverse
  • BlueMax372 BrianD3 2011/08/23 13:17:09
    BlueMax372
    +1
    Precisely!
  • mg's haven~POTL~PWCM~JLA 2011/08/22 23:17:32
    mg's haven~POTL~PWCM~JLA
    +1
    Why not boot bernanke and geitner for allowing this to happen. Its their call who gets what. I bet if obama heard NO from them when he should have he might have known their game. They had been at that crap for over a decade They need to have their leash yanked not stretched out that much further. Heck get barney frank out of there too. He helped them long enough to know what was going on.
  • Teancum79 2011/08/22 22:05:28
    Teancum79
    +1
    Titanic 3.
  • Studied 2011/08/22 20:57:34
    Studied
    +1
    Abolish the FED, they are nothing more than a cartel.
  • WhereIsAmerica? ~PWCM~JLA 2011/08/22 19:36:25
    WhereIsAmerica? ~PWCM~JLA
    +1
    Another step on their path of destroying America.
  • dave b 2011/08/22 19:21:16
    dave b
    +1
    Printing more money will only hasten the de-valuation of the dollar. Thats what Obama needs to have happen so America will be broke.
  • RageFury 2011/08/22 19:18:49 (edited)
    RageFury
    +1
    End the Federal Reserve and let our country take back control of the money supply. Anything less is akin to treason.
  • jr 2011/08/22 19:09:34
    jr
    +1
    Inflation is the cruelest of taxes, since it hits the elderly the hardest
  • BlueMax372 jr 2011/08/22 19:54:46
    BlueMax372
    +1
    In 0v0mit's Amerika, the elderly problem will be solved by his death panels.
  • Stone.Cold.Krazy 2011/08/22 19:08:51
    Stone.Cold.Krazy
    +2
    Cliff said it best......
    "The government printing money is taxation without representation. This needs to be debated in congress and we the people must have some say about it."
  • doofiegirl BTO-t- BCRA-F ~... 2011/08/22 19:06:29
    doofiegirl  BTO-t- BCRA-F ~PWCM~
    +2
    Oh god! More problems for people on fixed income! Prices up, income low, less buying power!
  • BlueMax372 doofieg... 2011/08/22 19:56:24
    BlueMax372
    +1
    And in turn less buying, further constricting the dying economy. Soon 0v0mit's plan for the destruction of America and American capitalism will be complete!
  • Richard Hungwell AKA Relent... 2011/08/22 18:57:32
    Richard Hungwell AKA Relentless
    +2
    If it is ok for them to devalue my money by printing more then it only seems logical that i should be able to print my own to get back what they take away. right... oh, so now they tell me thats a crime. Well, that certainly seems like the pot calling the kettle black.
  • maggiemay 2011/08/22 18:31:41
    maggiemay
    +3
    Someone break the damn printing press. These bozo's are clueless.
  • kaZappoo 2011/08/22 18:31:11
    kaZappoo
    +3
    they still havent considered the concept of producing a commodity or product that would be in demand in this country & world that folks would need & want ..

    this would create industires & sell products to people place people into work , gainfull work ,,,

    instead the gainfull jobs are sent off shore and the only thing these folks can consider is to give folks more money to spend ,,,,,but havent any sustainability to maintain a ginfull prosperous economy... so continue to raise prices flood the markets with useless cash ,,100.00 worth 10.00 and so on ...

    but these maniac's still dont get it ...so turn this country in to a socially dependent on govt society ...and then wonder why the growth is stagnate ...no jobs .prosperity , and people are gettig desperate ....
  • Casey kaZappoo 2011/08/22 18:39:13
    Casey
    +2
    You know China has no real income tax. What there is nobody pays, they get all their money from import ans export taxes. The tax on an imported car is 100%. The tax on an export good varies from 5 to 20% after rebates.
  • Casey Casey 2011/08/22 18:39:56
    Casey
    +3
    Soon they will be wanting to import cars here and the tax better be 100%
  • Laurie M Casey 2011/08/22 18:58:18
    Laurie M
    +3
    and apparently we are shipping coal to them to get the job done. We can't use our coal for our own energy needs but no problemo with shipping it to China
  • Casey Laurie M 2011/08/22 19:41:15
    Casey
    +3
    Plus Obama is dragging his feet on the Oil pipeline from Canada, the Chinese want that line to go to Canada west coast so they can get the oil. Obama is a failure at everything he does.
  • Laurie M Casey 2011/08/22 19:44:07
    Laurie M
    +3
    and he really doesn't give a big red rats a## that he is.
  • BlueMax372 Casey 2011/08/22 19:58:25
    BlueMax372
    +2
    Actually, he's succeeding because his failure is intentional! He is bent on destroying America.
  • Cliff 2011/08/22 18:29:55
    Cliff
    +5
    The government printing money is taxation without representation. This needs to be debated in congress and we the people must have some say about it.
  • keeper 2011/08/22 18:25:03
    keeper
    +4
    Frickin Bernake and the Feds are making our dollar vanish!
  • Casey 2011/08/22 18:24:03
    Casey
    +4
    This hurts the poor the most and will lead to hyperinflation. The Obama food riots are just around the corner.
  • Getting... Casey 2011/08/23 00:07:58
    GettingBarried
    +2
    LOL somehow it will be pitched as the Tea Party Food Riots of '12; like the alleged Tea Party downgrade.
  • Casey Getting... 2011/08/23 00:16:42
    Casey
    +1
    Don't you know it, but anyone with even half a brain won't buy it, most Obama voters are quite a bit short of half.

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