QE, The People And The Damage Done

[Raúl Ilargi Meijer]

A report issued by McKinsey Global Institute last week in my opinion warrants more scrutiny than I’ve seen it get so far. It addresses the effect of (
[See the full post at: QE, The People And The Damage Done]

[Glennjeff]

Really enjoyed the Young Neil clip. He moves the bass around very nicely on that guitar.

Oh! Gold is at $1250 and not tracking the price of petrol (deflating against it) at all well, but a realistic price. Think I mentioned something about that number in a crazy rant on the original TAE blog comments. No sudden left hand turns this time. (Just testing your memory and attention to detail)

Hope this simplified format works better for you n all.

[Professorlocknload]

“and the benefit to the economy would be $17,000. That couldn’t fail to create jobs.”

And inflation. In a big way. All in a one time frenzy. And it would most likely be leveraged into car loans, and installment credit, creating another debt bubble. Guess the banks would get it back anyway.

This is ultimately what they will try. Hell, if $10,000 would be “beneficial,” why not $850 billion a month and $100,000 per household x 1.7?

Or is printed money not real wealth? Maybe all it would do is cause price spikes and negate it’s effectiveness, along with debasing the currency?

We’ll see how this sort of thing develops in Venezuela.

[ted]

Thank you Professor, for your comment. I always cringe when I hear people throw up these “Easy Solution, Ideas” Kinda of like trying to put out a volcano with water cannons. If the problem is as big and extensive as we think it is then there is no easy solution; maybe it makes people feel better to offer solutions though…Ted

[Raúl Ilargi Meijer]

Well, Ted and PLL, I never presented anything as an easy solution, but why not try an alternative to what demonstrably doesn’t work? What we have is the Fed paying $85 billion/month to banks, same amount to us would be a nice experiment. Just see what happens. For the people, the present process is murder, so why not? And how that would lead to inflation, Prof, really, for people like you if we were mired indeep deflation, you’d see that as a sign inflation is coming.

[ted]

Well….my point is that the “damage is done” at this point. We need a crash to happen before we can rebuild. The political infrastructure will not allow any solutions like you talk of, and even if they are implemented do you think after all that has been done they will really make much of a difference? It will get swallowed up in the abyss. You contradict yourself too much….peak oil is going to rear its ugly head very soon…..Ted

[Raúl Ilargi Meijer]

Ted, I’m the first to call the political system beyond repair, and I’ve done just that 1000 times, so I hope people will understand that if I suggest something as “outrageous” as this, I don’t mean we should try and vote for it in Congress, or any parliament. But I still think the questions and suggestions are legit and valuable. Just because the system is dead doesn’t mean we all are dead too. I plan to continue to come up with thoughts about our societies whether or not they may or may not fit what our political systems have descended into. The role of peak oil in all of this is a whole other issue.

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