Matt Taibbi: Why 'Quantitative Easing' Is Insane

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[dearzoshka]

the thing is, everyone has an opinion, everyone has been wrong before, and that every political party is going to fuck something up. matt taibbi is a journalist...that's it. before you go calling someone a 'dumbfuck' take a step back from yourself and realize that no one has all the answers or knows everything. if you're so smart, then why aren't you in the video instead?

[jiiig]

I have "smart" people today who say there's no problem with gov just printing money.. 😥

[aluisious]

Missing two decades of growth and getting ready for the third decade to slide by is not without cost.

[Implicacean]

I don't know anything about Bernanke, but why would anyone give a damn what the founders thought? After over two centuries of cultural advance, how would the perspectives of a small group of plantation aristocrats, who pulled a bunch of rogue states into a loose confederacy, have any bearing on our culture clashes or our unified government-like mass of corruption.

[timfwater]

well yes in the long run there would be inflation if this money isn't paid back- but in the short run you need to keep aggregate demand afloat- and keeping the big banks solvent accomplishes this.

I feel that the more discomforting aspect is.. why are we using these Keynesian funds to prop up the same G-damn banks that caused this problem?! Why not use it to finance co-op run banks on a state level, that would hire investment consultants yet be directly responsible to the public? My 2c

[aluisious]

Sure looks like inflation out there. 5 dollar gas, 50k dollar tuition, 500k shacks in nice cities, medical insurance premiums ten times higher than they were ten years ago. Oh, but the cost of tables at Ikea is stable, so there's no inflation.

[MWFUKING]

look how suppressed this information is wow.

[LingahbytheSea]

The Japanese did it in the 90's, look how well they are doing now!

[mojorhythm]

It won't cause inflation. Banks create money by lending first then looking for reserves later; they don't passively wait for liquidity injections from the Fed. If there loans to be made, they would be making them. The problem is that the US and the rest of the world is already drowning up to their eyeballs in private debt. The solution to a private debt crisis is not more private debt; it is a debt write-down. Debts that can't be paid won't be paid.

[cyborganic]

Oh god. It's just frustrating to hear what someone is saying and knowing it is completely misinformed. When we start having inflationary pressure, which is so far from where we are now, the Fed will sell those T-bills, and that money turns back into thin air.