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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: THE ANT who wrote (109852)1/18/2015 9:08:05 PM
From: elmatador  Respond to of 217573
 
as long as the largesse benefits a tiny minority only it an go on. If all sectors of the American society demands a part of it, then it no longer be possible.

Note that the EU now will replicate the same experiment. Let's see how it develops there.

In the EU case, I am thinking that QE will work there but not for all.

Then the core EU will not want the periphery to participate in the largesse and EU will split.

Remember that the Bretton Woods agreement was a very limited "açao entre amigos", the G-7. and could not function if it embraced the rest of the world economies.

It will be repeated in similar manner: EU, US and Japan having QE based (new) economies.



To: THE ANT who wrote (109852)1/18/2015 9:41:29 PM
From: Elroy Jetson  Read Replies (3) | Respond to of 217573
 
Too much spending causes inflation. Not enough spending causes deflation, which is where we're at now. As a consequence the Fed can easily monetize the entire the entire national debt, which will merely prevent unemployment from reaching 30%, without causing inflation.

There's no absolute rule in economics, it's all relative to what's going - the conditions on the ground, the military might say. Which is why an economist might say something is true, ceteris paribus, meaning holding all other things constant.