Nothing to add, but I'm curious as well. |
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I saw in the news yesterday that the European Central Bank has called for the use of quantitative easing to boost the current eurozone economy. |
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Nothing to add, but I'm curious as well. |
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157 is a prime number. The next prime is 163 and the previous prime is 151, which with 157 form a sexy prime triplet. Taking the arithmetic mean of those primes yields 157, thus it is a balanced prime.
Women and rhythm section first - Jaco Pastorious
^Appreciate the input |
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Yeah it's basically artificial inflation. They give it to the banks and I think the banks have some kind of obligation to pass that onto the public. |
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It is a nice term for printing money and causing inflation. It does two things. The first is that it devalues the money. If you devalue you the money, your debt is also reduced. If you owe someone a 100 pesos that is less that owing someone a 100 dollars. So devaluing your money reduces your debts. |
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Yes, that is probably it. I don't know the actual equations, because I believe in Austrian economics and not Keynesian economics which is what most people follow today. Though with a basic understand of economics, you don't need a formula to see what they are doing is going to cause problems down the road. In fact even people who know nothing about economics can see they are just pushing the problem off until later. |
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QE doesn't work... the Fed has tried that here to the number of 29 trillion dollars since the recession began. Triple the money supply in 4 years? That can't have negative effects on the economy or the dollar at ALL >.> |
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Yes, and the only reason we haven't seen the massive inflation they saw in the late 1970s is because the savings rate in America is so stupidly low (due to both low interest rates and stupid, entitled baby boomers) that the lack of capital is producing a deflationary spiral that's actually able to keep up with inflation. Thus, prices have been relatively stable. But since everyone's unemployed, stable prices is still effectively a kind of inflation, because in a deflationary spiral all prices should be plummeting. |
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The other reason we don't see massive inflation, is that we sent a lot of money over seas to other countries. Which is why there are a lot of people really scared of the US being dropped as the reserve currency of the world. Because if that happens, the money comes flooding back to the US and we will experience hyperinflation. |
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Unfortunately, hyperinflation doesn't really hurt the wealthy: they are the only ones who SEE the new money (no net change in value.) It's the middle class and even moreso the working class that will be damaged... we're not going to HAVE a middle class if money floods back here. (Who will support the economy now?) |
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