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To: ecrire who wrote (27992)6/4/2012 11:00:48 AM
From: Nevada999917 Recommendations  Read Replies (1) | Respond to of 29622
 
You are truly an expert in the very simplest of economic concepts. Kind of like the greatest kindergarten teacher on earth. Some of us believe you need to dig a little deeper to understand the current global financial situation.



To: ecrire who wrote (27992)6/4/2012 2:07:08 PM
From: GST6 Recommendations  Read Replies (1) | Respond to of 29622
 
<corporations and individual consumers retrench,curtail spending, pay down debt.Money "printed" is hoarded>

This just underlines the fact that you have entirely missed the point of QE. QE creates fake money to fill a gigantic hole in our economy -- a hole that can only be eliminated by running a combined savings and trade surplus. We have neither -- and we are running out of countries to tap for their trade and savings surpluses. In the absence of these other sources, we fill the gap with fake money. This is not a matter of 'stimulation' -- this is basically the same thing the Madoff and others did -- only they did it on a tiny scale compared to the Fed. The Fed is not stimulating anything -- they are printing money like there like no tomorrow because they have no other way to keep this ponzi scheme going. Like all ponzi schemes, this one will end badly.