5 ms·
I was talking about the two levers the Fed has to guide the economy at work - Printing Money and Lowering interest rates (as described by Ray Dalio https://yout
by 29_29 7y ago
I was talking about the two levers the Fed has to guide the economy at work - Printing Money and Lowering interest rates (as described by Ray Dalio https://youtu.be/PHe0bXAIuk0 https://youtu.be/PHe0bXAIuk0). My coworker starry eyed, looked at me and said, "What about Quantitative Easing?". I responded that is printing money. I think the issue is, these concepts are given difficult sounding names, so people do not question their ethics. I'm not saying they are not needed - in a credit based economy it seems they are absolutely necessary, but perhaps they could be implemented in a way that doesn't so favor the rich.
- mars4rp 7y agoYes, print money and pay for student loans!
- michalu 7y agoExcept that "Quantitative Easing" is NOT "printing money"... it's just media who dubbed it "printing money" as it is a more clickbaity term that works better for driving traffic to the advertisement infested pages.
- grandridge 7y agoIt is exactly printing money, just the amounts are so large they just skip the paper and ink
- geggam 7y agoAnd it's easier to move around, for a fee. Think of this business opportunity. Start a company where you imagine wealth into existence then loan it to others. Then you setup partner systems where you charge folks who use that wealth. A charge for each transaction. Zero overhead with a profit layer...
- RhodesianHunter 7y agoWhen you put money into the market, but take bonds (which are a guaranteed future cash flow) out you are injecting liquidity temporarily, effectively trading current cash for more future cash. It's not the same thing as printing money and spending it and suggesting otherwise is either disingenuous or ignorant.
- 29_29 7y agoQuantitative Easing could not exist without creating money. Its literally the Fed creating money to buy bonds to reduce interest rates.
- 29_29 7y agohttps://www.investopedia.com/terms/q/quantitative-easing.asp https://www.investopedia.com/terms/q/quantitative-easing.asp > Quantitative easing is an unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to increase the money supply
- deleted 7y ago[deleted]
- deleted 7y ago[deleted]