yes, I cannot wait for the "other solution".. this is going to be hilarious... The world will feel a slight pain, but it's better that Greece is "cutt off".. Time to take away the heroin from the addict... Time to detox.. Slowly weaning away did not work..
Well, you don't need to be super dramatic about it, lol. Every country prints money. Maybe instead of using logical fallacies and displaying your ignorance, you should ask questions instead. Just a suggestion.
It wouldn't have been so hilarious if they hadn't adopted voodoo Reagan austerity economic policies, but they did just that; https://www.youtube.com/watch?v=81BD8GkwblA
If you aren't Keynesian I'm guessing you're monetarist. To say that camp has been "right" after 7 years of unprecedented global QE is more than a stretch. I know I know, QE wasn't big or early enough. Hopefully Yellen gets that right with QE4. Greece has hit the wall of economic scarcity. They no longer have politically feasible access to capital. Now at the 11th hour you are looking at the economic camp that says "don't steal" and blaming them.
Nope, you can see my threads for the past 5 years, making it known that QE was a non-event and would do pretty much nothing for the economy. QE4 wouldn't do anything either. The way we do QE is not the traditional way that you think it is. So yes, our economic camp has been 100% correct about QE the entire time.
Here's a comment I made 3 years ago... "It depends what quantitative easing you are talking about. If you are talking about what people call QE1 and QE2 of the past 3 years than no it does not have any inflationary effect whatsoever. I've studied this issue in detail and it is literally a non-event other than maybe some psychological issues about possible inflation. But as Bernanke even came out and said... it's more like "credit easing" than quantitative easing and it created $0 for use in the private economy. So if global inflation happened it was not due to QE1 and QE2 simply because it's a mathematical impossibility, since the Fed didn't actually put any money in to the real economy." http://www.politicalforum.com/polit...tive-easing-viable-national-defense-tool.html
Question: How many drachma's will it take to buy one loaf of bread????? hahhahahahaha.... Silly progressives... There's no such thing as the "money tree"... Printing money does not equal "wealth creation".... The Greeks thought austerity was "bad", but wait until they see the "alternative". This is going to be interesting...hahahahahah
That doesn't make you right because QE hasn't been a non event. The money had to go somewhere and that is where prices went up. In this case that was in financial assets. Now stocks and bonds are sky high while disregarding historical asset class correlations. The full extent of this distortion won't be known until a correction takes place.
Thanks.. and "Go into all the world and preach the gospel to all creation..... For printing money is evil... " It is too late for Greece... but you can still save yourself
No, you're still wrong. The money "did not have to go somewhere". It went on banks balance sheets and no where else. Like I told the dude who keeps posting pictures of Zimbabwe and the Weimar as if that means anything... it might be best to start asking questions. - - - Updated - - - Every country prints money. Not really that big of a deal, unless you are one of those super crazy anti-govt loons.
Bonds were purchased, this lowered yields and raised prices for bonds. Low rates served as a mechanism for increased corporate bond issuance, which enabled stock buybacks at a huge level even while the market was perched at all time highs.
Good thing about printing money is that you can raise the minimum wage to.... 1 million drachma's per hour.... Screw $15/hour.. 1 MILLION drachma's per an hour!!!! Yeah, I know.. some liberal/progressive probably just creamed their pants right now... hahahahahah.... The sky's the limit when you can print as much money as you want.... Screw the Euro... Drachma's the currency now, and it's going to rock the world....
Is this a bad thing? Haha. Are you trying to say the stock market is driven indirectly by QE lowering treasury yields? Maybe that's what the Fed's wanted. - - - Updated - - - Oh no!!! So one country printed too much money that means any printing of money now is bad? That's some serious logic you got going for you. And by the way, I know you can't tell my tone through a computer, but I'll let you know I am 100% mocking you and speaking in a completely condescending tone, lol. Because you literally have no clue what you are talking about.
Well it looks like you're ready to shift gears from saying "the money didn't go anywhere". Sure, bubbles feel fine on the way up.
Lmao, you said absolutely nothing about QE going anywhere, you were saying it lowered yields (which I agree with) causing OTHER money to go in to the stock market. That's completely different than "the money went to the stock market".
That's nice... I know you can't tell my tone through a computer, but I totally don't care... Free money!!! Get it while you can.. ahh.. screw it.. just take your time.. Greece will print out more.. hahahahahahahhahahahahaha.... No matter what happens, hilarity is insured...
Well whether those particular digital dollars went on to buy AAPL shares or not, it was far from a "non event" and it pumped up financial prices miles ahead of the real economy.
Sure it was a non-event. You're just making up stuff that people only started investing in AAPL because treasury yields were down couple points. That's a bold statement to make without any facts whatsoever, lol. QE1/2/3 were pretty meaningless to the real economy. Didn't give anyone any money to spend, lowered treasury yields by a little bit... but to say that decrease is what caused the growth in the stock market is pretty hilarious. It might have a small effect to it, but nothing significant.
Money is a way to keep track of the exchange of goods. I sell you chickens, you give me money. I then use that money to buy something I feel valuable. If the government prints a lot of money (which Greece will ultimately do considering how poorly they have handled their finances in the past), this will only cause hyperinflation /inflation. The problem with Greece is that they are spending more than the make. When I mean "make", I mean "wealth creation". They are not adding value to the "system." They (as a society in general) keep on buying stuff with borrowed money, but than they cannot provide value back. In grained in their society is the value of socialism. They expect to receive more, but yet don't expect to give more. It's like an addict.. They have to be cut off. They must be forced to acknowledge that money is not "free"..
Well what if they don't print enough and there is no one looking to give you money for your chickens?
7 years of rates being at 0 is a bigger factor. QE is a factor as well. Treasury yields greatly impact yields for all other fixed income securities in the U.S. The spread over treasuries is a huge factor when evaluating bonds. So when you suppress long term treasury yields you impact the entire market.
There is enough money in circulation. If I give them chickens, what will Greece give me???? Greece is a small country. They don't have oil.. Their agriculture is insignificant with regards to how much they owe the world. They aren't a manufacturing hub like Japan.. They at the end of the day expect free chickens when they have very little of value to give in return. They just want to keep on borrowing and borrowing.. Greece does have money... They just don't have a lot because they don't have anything of value they can sell... Like adult kids living in their parent's basement, it's time for the kids to be kicked out and find something they can do to make money (i.e., create wealth). Asking for bailouts, after bailouts isn't going to work in the long run. Going back to the drachma isn't going to work either, but it will be fun watching them try...
They are factors for sure, but they are not the biggest factors. There are still normal fundamentals in play. You act like AAPL isn't a company people would invest in if treasury yields were a little higher, haha. There was an overreaction and the stock market plummeted. There was plenty of room to grow for the stock market with out QE1/2/3. And even though it was kind of their plan to get people to invest in equities instead of in treasuries, I'm not sure what the problem is, haha. It's only your opinion that the stock market is overvalued. People have been saying that for the last 4-5 years. - - - Updated - - - So you know there is enough money in circulation, how? Or you just making stuff up? That's a rhetorical question.
