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Topic: So what would realistically happen should the FED introduce QE5? (Read 3555 times)

legendary
Activity: 1512
Merit: 1005
QE could be stopped, but money production (in the form of credit) could continue in the chartered fractional reserve banks (while lower reserve requirements), using unused and already "permitted" mechanisms, new bonds in the half private market (the postal service f.ex), private bonds with explicit government insurance, or private bonds with implicit government insurance, sour loans can be parked in bad banks (in stead of being cleared).

In addition, all the worlds fiat systems seem to cooperate, always keeping the peripheral currencies within a band of variation from the dollar, so other countries can do the money printing on behalf of the Fed.

Lots of possibilities. The point is to hide the real money production, because the market is governed not only by inflation, but inflation expectation. When all fails, start a war.


donator
Activity: 1617
Merit: 1012
What's QE5? A negative Federal Funds rate?

I believe this would have little effect on the price of BTC. Banks are still turning around and lending this money to regular people at typical rates of 8 - 20%. Most people would not get to see this extra liquidity.
hero member
Activity: 798
Merit: 1000
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If they did, Wall Street and corporate sharks would make off like bandits, just like the last QE runs. This is simply corporate welfare and nothing more.

QE5 would simply continue the FEDs trend of rampantly printing up money from nowhere to keep feeding already massive economic distortions and bubbles. The problem here is that in doing this they have backed themselves into a corner, where they must simply keep printing money until hyperinflationary collapse occurs. Through history, several fiat currencies have had this occur, so its not a new concept.

When they pulled back QE a bit a few months ago, emerging markets around the world got absolutely hammered. Countries like Argentina and many others saw their economies start tanking almost immediately along with the value of their currencies because the hot money was no longer flowing so strong. This showed how incredibly weak and fundamentally unsound the world economy really is, and the FED is behind this worldwide bubble.

The fiat economy is in deep shit, and it will end eventually. It is inevitable. QE is a quiet admission that every market on this planet is not based on actual economic value or growth, because without their dirty money press everything would instantly collapse.

Look up the Weimar Republic and you will see what America's future looks like. The despair it caused the Germans effectively helped Hitler rise to power as their savior after the hyperinflationary collapse of the Weimar currency that left millions jobless and starving.
hero member
Activity: 784
Merit: 500
It seems they do these to benefit investors but wouldn't that also skyrocket the BTC:USD value?

Not sure if they would do this.  All QE did was juice the stock market.  I'm sure they are worried about stock market bubble

The reason the stock market is bullish cause there is rotation from other investments into stocks.  Funds can't invest BTC if they wanted to.  So probably no effect on BTC
newbie
Activity: 14
Merit: 0
It seems they do these to benefit investors but wouldn't that also skyrocket the BTC:USD value?
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