Topic: FED decided to not end QE - page 2. (Read 9421 times)

This really did not suprise the followers of the Austrian school of economics (Peter Schiff and many others).

As important as this is, it would be wishful thinking this will destroy the dollar. It will not. As long as the world accepts dollars, the Fed can print much much more and for a very long time.

I think they still have lots of room

It is easy to bribe people with printed money, so that eventually every one is bribed. Imagine that average Joe suddenly get a job with $10K per month, even the job itself is useless, he won't question it. And more importantly, he won't care about that some bankers earned $100K per month during the process

Commercial banks are like black hole, newly printed money must first satisfy their need and then the extra part will flow out to the society. For each 10 dollar went into commercial banks, maybe only 1 dollar eventually spent and created job

The only concern is hyperinflation, but that will not happen as long as the money printing speed is less than 100% per year and there are assets continuously absorb the extra money supply. Average Joe will not eat double amount of beef per day if his income doubled, but he might spend 100% more on his mortgage and get a newer larger house. That will not impact CPI directly

There is another concern about concentrated production power, e.g. a few multinational enterprises command most of the production in the world, thus rest of the people become jobless. But same, if they are bribed with enough money, they will eventually hire more and more people doing useless things, at mean time accumulate magnitudes higher money

And just like bitcoin, most of those money will first be hoarded when people's saving preference is high, but if the economy really improved after a while and those money are losing their value quickly, they will rush out to chase other things, thus accelerate the inflation. It is possible that we will see a 20% interest rate on USD by that time, maybe even a 50% interest rate can not save it

mandatory

http://www.youtube.com/watch?v=GTQnarzmTOc

This is the end game, the FED has basically admitted now that it can't stop QE and has no exit plan of any kind.

Though the unthinkable approaches as fiat nears its end, I can't wait to see how Bitcoin responds. If it was anything like Cyprus we may be in for a big surprise.

The FED is holding on, waiting for Bitcoin to mature.

Of course they're not going to end QE. It's the only thing propping up the markets since the 2008 crash.

the way i see it fed are doing QE every couple of years now indicating that they are buying some time for themselves. if we dont get another QE in 2015 then we need to brace ourselves as doom will be around the corner...

They can't.  Cheap money has turned from stimulus to entitlement.

Why do they always use lots of vague terms like tightening, easing, tool box, taper ... when in reality it is only two actions: print more money or print less money  

We don't do QE in Bitcoin. 

Great to see my tax dollars being used to prop up criminality. I wish I was to big to jail. 

I agree. The Fed was expected to taper, and they didn't. I see this leading to more and more people wondering if it will ever stop.

Fed will stop printing when the economy is better.....For sure

What Bernanke did say, which is correct, is that there is only so much any central bank can do. They have some tools, and they can use those, but not more.

What is really needed is a stop to random redistribution of wealth through government, and massive deregulation. Let the prices, including interest rate, signal to the actors what is valuable and what is not. Its is not in the Fed's toolbox.

That was just an apartment building, as everybody who bothered to actually check the address would know.

+1

also check this out:

http://www.marketwatch.com/story/fed-postpones-the-moment-of-truth-2013-09-18?pagenumber=1

http://flowofwisdom.com/2013/08/19/is-the-federal-reserve-acting-like-bullies-over-germanys-gold/


and how about that gold basement fire in new york couple of months back?
it seems that the gold is going from institutional possession into private mansion basements. ie we are witnessing a bank run that will go on among known circles until economy cant take no more.

ohh boy seems like something terrible is bound to happen sooner than later..

As long as you Americans not paying back our loan with your own money. They will continue to print more crap to pay us back. Hedge your position with us loans or bitcoin. You choose!

I've only seen a little bit of Marc Faber but I liked what he had to say