Things are going so great in the economy that the Federal Reserve decided we need another round of QE.... QE3 is an ENDLESS QE! Gold Futures Surge as Fed Announces QE3 Gotta Love those Keynesian, finally decided to just cut that pesty nose right off our face. I wonder why the Chinese or USSR never figured this one out? To be prosperous all you need to do it print up as much money as you can. Just ask the Zimbabweans.... they have Trillion Dollar fiat notes.... WOW they must really be rich!
So if these policies do succeed in stimulating employment - and so, come to an end - are you going to admit that your whole take on this subject is in error?
Stimulating employment is not the same as creating a prosperous society. The USSR had 100% employment. North Korea has 100% employment. When a cup of coffee at McDonald's costs $10 and we're just as poor are you going to admit Keynesian Economic theory is a failure?
One, the QE 3 was just announced a few hours ago. It has yet to be implemented. Two, gasoline prices rose long before the QE 3 announcement and they rose for different reasons ... you know the old supply - demand thingy.
Did they? Really? How about making some appropriate comparisions? As pointed out to you numerous times before, this is a silly. What is important is purchasing power, not how many dollars any given product costs in dollar terms. And the truth is consumer purchasing power is much greater now with the advent of Keynesian economic polices than at any time in human history. And as has been pointed out to you again on numerous occasions, expansionary monetary policy does not mean unrestrained inflation. The Federal Reserve can shrink monetary supply just as easily as they can expand it. Michael you remind me of the guy on the freeway having a hissy fit over his flat tire, totally ignoring the semi that is bearing down on him.
What happens Michael when the value of the dollar increases? Those who own dollars win as the dollar buys more goods and services. Those who own things like homes, stocks, companies, gold, silver, etc. lose as those items can be purchased with fewer dollars. Those dependent on labor for their income loose as their labor is worth less. They have to work more to earn the same dollar. American made products become more expensive overseas, that means fewer jobs in The United States.
That doesnt make sense, you cant have it both ways... Their labor isnt worth less if items can be purchased with fewer dollars, right ?
Please Register or Log in to view the hidden image! So, once we get our purchasing power down below the Mexican peso or Cambodian Riel then we'll really be rich! Just imagine, it used to take a single father (family of 5) working to buy a middle class house, couple of cars and a nice holiday home. Now it takes a the husband, his wife, their two student roommates they rent the downstairs out to and kids... nope, can't afford those, all to own/rent from the bank, a small house (or apartment). BUT (and here's the key) once we get the US dollar way down below the peso.... THEN we'll really be RICH!! RICH!!!! Maybe some nice Chinese business person will even hire us to work in their factory! Gee, if we're lucky, with our peso-dollar we'll get to work 16.... maybe 18 hours a day to make ends meet! Won't that be wonderful! THINK OF ALL THE WORK WE'LL HAVE TO DO!!!! MOOOOOOOOOO!!!!!!!!!!!!! Please Register or Log in to view the hidden image!
That is not what I read: http://news.investors.com/blogs-cap...federal-reserve-qe3-will-boost-gas-prices.htm http://giavellireport.com/2012/09/05/how-much-will-gas-cost-after-qe3/ http://seekingalpha.com/article/841261-on-qe3-buy-oil-and-gas-sell-obama-re-election-odds
On the contrary, it does make perfect sense. When the dollar increases in value by definition, the dollar would then purchase more goods and services. That means those goods and services (including labor) have to be worth less because they can be purchased with fewer dollars. It’s called deflation. It is the opposite of inflation. It is basic math. Michael has been ranting about the dollar not purchasing as much as in the past. That is called inflation. Michael is arguing for the opposite of inflation (i.e. deflation). What Michael is not telling you is people have more dollars now and more income to purchase goods and services more than offsetting any decrease in the value of the dollar. You are right in this sense; you cannot have it both ways. You cannot have dollars that are worth more without decreasing the number of dollars in circulation and the earning power of the average Joe and Jane and lowering the number of jobs available to the average Joe and Jane. You cannot have fewer dollars in circulation and everyone have more dollars and more purchasing power and more jobs. This is just one example of the inconsistencies in in right wing ideology.
Let’s refresh your memory; you claimed that the QE3 announcement was responsible for the higher gasoline prices we have been experiencing at the gasoline pump. In essence you are saying the cause preceded the event. The articles you “read” do not support your contention about current gasoline prices. The articles you referenced are speculating about the future impact of QE3 on gasoline and commodity prices. There is a difference between past, present and future. It is that whole time thingy.
We have been through this many times before Michael. You are a broken record, repeating the same claims using the same material over and over again and again. The part you are not showing is how many dollars are now avaliable to the consumer to purchase those goods and services. What you are not showing is the purchasing power of the average Joe and Jane has increased signficantly over the referenced time period more than offsetting the decline in the purchasing power of the dollar.
To all those getting their panties in a bunch over the Fed's latest QE stimulus, wake up and smell the coffee. Economic inactivity is doing far more damage to the US economy than a tiny QE monthly stimulus plan. I say tiny because it's a drop in the ocean when considering the size of the American economy. In the UK there has been the best part of $600 billion worth of QE in an economy less the than a sixth the size of the US economy. Result being that one of the most indebted European states has one of the lowest rates for bond yields and have managed to stave off significant economic contraction which could have seen their economy shrink by over 10%. The lessons to be learned here are that extra money helps economies, it's that simple. Right now US economic growth is being stifled by a lack of money and consumer spending. Also because of an over reliance on cheap imported Chinese, Taiwanese and Indian 'tat'. What is needed is far more QE that can actually start to reach the pockets of ordinary Americans. When this starts to happen we will start to see increases in production and manufacturing as companies will start to have customers who actually have money to spend. Without the money out there though why are companies going to start making more things if there's no one to buy them? Simple truth is they're not. Ok if there does happen to be a knock effect that sees the dollar devaluing slightly then that can only be a good thing for exports and improvements in balance of trade that will in the long strengthen the economy. Would it really be such a bad thing if people start to find that imported goods are more expensive whilst at the same time discovering more choice of American ones that are becoming cheaper. This could also see more jobs created for ordinary americans.
It's true that high employment is not itself sufficient to create a prosperous economy, but it is necessary. You certainly can't have a prosperous society without a high level of employment. That's not true. In both cases, what they had/have is bullshit propaganda statistics that claim 100% employment, despite the fact that large numbers of workers have no jobs. QE is not an exercise in Keynesian economics. Keynesian policies would involve a bunch of government spending on public works projects and the like. You don't appear to have any real grasp on Keynesian economics. Indeed, you seem to just use it as some kind of catch-all term for any "status quo" policies that do not embrace your revolutionary "Austrian" nonsense program. But, sure, if unemployment does not improve, or if inflation gets out of hand, I will have no trouble inferring the QE is not working.
But people knew it was coming...the speculation stuff...like it happens during rain falls, or hurricanes...but then, it may not matter to you...it certainly does not for me...it is the time thingy...too
Yes speculation can be a factor. But if speculation of QE3 was a speculative factor in recent gasoline pricing, we would have seen price increases in other commodities like oil. And we didn't see it. So that would say QE3 speculation was not a factor in recent gasoline pricing. It is far more likely the increase in gasoline prices we saw in August and early September were the result of gulf refinery shut downs due to Hurricane Isaac. And now, with the recent 9/11/12 embassy and consulate attacks, we have political instability in the Middle East contributing to increased gasoline and oil prices. http://www.nydailynews.com/new-york...g-5-article-1.1160204?localLinksEnabled=false
The Fed will continue creating dollars...as its been doing almost continuously since the 1960s. As long as the rest of the world accepts them in exchange for real goods...why would they stop printing??? Its the best business one could possibly imagine.
Would you rather the opposite? Would you prefer fewer dollars and increased unemployment (i.e. depression)? Apparently, the answer is yes.
