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Forums - Politics Discussion - Quanatative Easing is an inefficent top down economic approach.

Kasz216 said:
Oh... and as sign of a horrible effect that's already happening....

http://www.businessweek.com/articles/2012-08-30/in-japan-retirees-go-on-working

That's largely going on all over the developed world now, though. Not to say Japan doesn't have it especially rough.

The only thing they really got right was there health system. Lower cost, better coverage, and their health system is solvent, isn't it?



Monster Hunter: pissing me off since 2010.

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i thought it helped out poor people, since they have debt. and QE3 inflates the dollar, so they are paying back their debt with cheaper dollars?



killerzX said:
i thought it helped out poor people, since they have debt. and QE3 inflates the dollar, so they are paying back their debt with cheaper dollars?

That is what i suggested as well (which i suppose is part of the reason they want to hike interest rates on student loans. Need to at least break even in real dollars, long-run). Presumably currency devaluation also makes American exports more competitive by default



Monster Hunter: pissing me off since 2010.

killerzX said:
i thought it helped out poor people, since they have debt. and QE3 inflates the dollar, so they are paying back their debt with cheaper dollars?


That would only be the case  assume that wages are going to increase with inflation.

Wages/Inflaton really seems to be more of a one way relationship.

Inflation increasing with Wages...

Wages... sometimes increasing with inflation, but only inflation created by actual economic growth.



Mr Khan said:
Kasz216 said:
Oh... and as sign of a horrible effect that's already happening....

http://www.businessweek.com/articles/2012-08-30/in-japan-retirees-go-on-working

That's largely going on all over the developed world now, though. Not to say Japan doesn't have it especially rough.

The only thing they really got right was there health system. Lower cost, better coverage, and their health system is solvent, isn't it?

I don't know... seems systemic of something worse when a company is rehiring 90% of their retirees at a 40% paycut.  That's just heinous.

As for Japan.

It's not really solvent... but that's due to demographic issues.... though i'd argue that's why it's mostly been successful too.

You can have the best recipe in the world and it's still not going to make good tasting food if your ingriedents suck.

 

The Japanese are a lot healthier going in to their system them most other countries.  The way Japan's healthcare works actually is a lot like a much cheaper version of our system... where doctors get paid mostly by proscribing more tests whether they're needed or not.



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Kasz216 said:

http://www.cnbc.com/id/49031991/Does_Quantitative_Easing_Mainly_Help_the_Rich

http://www.moneyweek.com/news-and-charts/economics/global/bill-bonner-qe-favours-the-rich-60512

This is an amusing thing about the elections this year... since Republicans are against QE, Democrats are for it.

QE greatly helps out those with assets, espiecally financial assets. 

 

Essentially it's a BIG valuation increase for those high in assets.  "Wealthiest .01%" or whatever.

At the low bargin cost of food and other commoddities (and products made from them) to get more expensive.

 

Isn't Romney whole economical plan to cut taxes to rich so that they can invest more into the economy and create more jobs ?

Well it looks to me like QE does the same thing in a different way :P ( it doesn't cut taxes but it increase their income so in the end the result is the same)

Now if you argue that does little for jobs, I don't see why the tax cutting thing would work any differently..

Not thatI, personally have any position on QE, I have benefited from it so I am not going to complain too much about it...



PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !

PS3-Wii gap : 20 millions and going down !

sounds about right the corrupt politicians only design policies that ensure the top 1% always win
regardless who gets into power. the corrupt politicians implement policies that accelerate the wealth of the top 1% at the expense of the 99%.



yup, it's a black hole that funnels money from the poor to the rich basically. More specifically it devalues the money of everyone who is holding dollars while the people who own assets stay about the same (value only goes up in fiat currency not real value). This is why i've been buying assets for a while now, those on fixed income, living paycheck to paycheck, and those holding fiat currencies beware.

Recently QE3 was announced, EU bond buying plan announced, Japan increases stimulus fund, UK announces it's own version of QE, and China announced infrastructure stimulus plan. This was all announced in the last couple of months. You've been warned, get your money our of fiat currencies now.



currently playing: Skyward Sword, Mario Sunshine, Xenoblade Chronicles X

Ail said:
Kasz216 said:

http://www.cnbc.com/id/49031991/Does_Quantitative_Easing_Mainly_Help_the_Rich

http://www.moneyweek.com/news-and-charts/economics/global/bill-bonner-qe-favours-the-rich-60512

This is an amusing thing about the elections this year... since Republicans are against QE, Democrats are for it.

QE greatly helps out those with assets, espiecally financial assets. 

 

Essentially it's a BIG valuation increase for those high in assets.  "Wealthiest .01%" or whatever.

At the low bargin cost of food and other commoddities (and products made from them) to get more expensive.

 

Isn't Romney whole economical plan to cut taxes to rich so that they can invest more into the economy and create more jobs ?

Well it looks to me like QE does the same thing in a different way :P ( it doesn't cut taxes but it increase their income so in the end the result is the same)

Now if you argue that does little for jobs, I don't see why the tax cutting thing would work any differently..

Not thatI, personally have any position on QE, I have benefited from it so I am not going to complain too much about it...

Personally I don't think tax cuts will help... but taht's me.


It does work differently however... hence why it's an inefficent top down approach.

QE raises the overall market, making everything your already invested in worth more.  Which you may cash in.  Or may just let sit... since the big wave already happened.  Additionally it discourages startups since the big wave has already hit.  Startups being the most important part of fixing the economy.

While taxcuts for the rich only give you money on realized invesmenets you cash in... then you reinvest said money... or spend it either helps.

QE practically works as an incentive to let money sit in high end stocks.



HappySqurriel said:
Monetary stimulus is the narcotic pain killer of economics ... It does nothing to address the underlying problems, it only provides short term relief, and it is addictive.


Actually, in most cases, pain killers are all you need and all that will help to get through injuries; and in just about all other cases, they are an extremely good addition. They allow the subject to sleep better and improve the quality of healing while at the same time avoiding mental stress as a result of the physical pain.

In addition, pain killers will be able to neutralize migraine headaches, which could otherwise have you vomiting in pain.

The moral of the story is you have only examined pain killers from a very biased angle, and that is probably also true about your examination of economics.



I describe myself as a little dose of toxic masculinity.