How come QE hasn't caused a massive explosion of hyperinflation?
>>1260542
Only the rich have access to teh moneez, and they don't appreciably affect demand. Everyone else is still struggling.
>>1260542
becuase you don't understand what QE did and is still doing and who's profiting off of it
>>1260542
The same reason why trickle down economics is a sham: the rich don't reinvest their money into the economy.
>>1260579
>the rich hoard their money
>they don't invest in businesses to seek returns which beat inflation
>they don't diversify by putting their money into real estate and other various forms of securities/assets
So what was the point of QE?
>>1260583
Putting your money into securities and other financial assets is a form of hoarding. If they had put their money anywhere useful, e.g. in startup capital, we would have seen hyperinflation.
>>1260587
The all-knowing, all-powerful free market who we normally worship and use to justify our actions fucked up and caused the value of stocks to drop. Lest I be forced to sell one of my yachts, the federal reserve stepped in and printed four trillion dollars to buy bonds, raising stock prices. It's amazing how perfect our capitalist system is. :)
>>1260542
the money never enters the real economy
https://www.youtube.com/watch?v=Kw3uXAQ4DwE
The added liquidity sits on the sidelines of the banks because the trust just isn't there. They don't want to make more loans.
Once the boom really gets going, we will definitely have some severe ketchup-bottle inflation. This is why the fed is being so dove-ish these days.
>>1260662
Wrong
>>1260665
cool opinion bro which CC did you get your econ AA from?
>>1260542
We're starting to see it now sunny.
Look around you:
> new cars
> small businesses left n' right
> investment commercials
> housing prices 2x they were 1 year ago
It's happening again.
>>1260681
that's bullshit nigga, non-durable goods are sluggish as hell and more small business are closing than opening.
I'll agree with you on housing prices but that was a long fucking lag, all QE really did there was stop the sector from collapsing completely.
>>1260583
Well, it is true that the rich save more money than the poor percentage wise
The problem with trying to wring it out is that some of them might just leave with it which is even worse than saving
>>1260617
>>1260542
The created money isn't being spent on anything productive, thus the money isn't re-entering the economy which would cause inflation.
>>1260693
Ya, but those small businesses are getting their money from where? Banks? Right.
>>1260726
Venture capital doesn't necessarily come from a bank.
>>1260668
Not zerohedge like you
Try reading the wiki on "money supply" before commenting champ
>>1260639
>shadow banks
now that's just what we needed
normal banks were not bad enough i guess
What can a normal person do to protect their wealth and livelihood when the QE money enters the economy and inflation starts going out of control? Buy gold?
>>1260542
Turbo lag. Zimbabwe gave their banks a lot of printed money too. It just sat there for a few years. Don't worry, you'll see the consequences of QE soon enough.
>>1260886
Don't have to. Anything tangible that you think you can barter later on.
That being said precious metals will obviously do the best in a hyperinflation.
>>1260617
>free market
Stopped reading right there
>>1260681
>used cars selling for half their worth 10 years later with 100k+ miles.
you can see it everywhere.
>>1260542
because its not a free market. Banks are too big to fail. theres only one way for a bank to fail and thats fraud. but since they are protected by our government they can just keep fucking everyone over without consequence.
>>1260681
I checked the prices on craigslist for my make/model/year, 10 year old car with low miles.
The depreciation was anywhere from $2k-8k from what I paid for it new 10 years ago.
$2k. In 10 years. It's not that it's holding its value.
IT'S THAT THE DOLLAR IS GOING DOWN.
At some point you'll buy a car and its used price will go UP.
>>1260947
just buy guns. its the only commodity that you can sell for more than you paid for it even if you use the hell out of it. plus they are fun as hell.
It did hyper inflate shares/stocks. maybe if they'd just give every US citizen a bonus $1000 each month it would have sent consumer goods UP. who knows?
>>1260999
socialism is a bad word anon.
>>1260551
so if anything happens to affect this, we are going to see hyperinflation. So in the future, something will happen to trigger super rich spending, and then the dollar WILL collapse. Unless somehow money disappears.
Jesus Christ.
>>1260755
The shadow banking system is a term for the collection of non-bank financial intermediaries that provide services similar to traditional commercial banks but outside normal financial regulations.
>>1261069
how is this legal?
>>1260953
>wanting to interact with gun freaks
lol no thanks
>>1260947
the dollar has gone up 25% in the past year or so...
>>1260727
Yes QE goes to whom? Rich? VCs are majority what again? JP Morgan anyone?
Love connecting dots.
>>1260587
To lower corporate bond yields and encourage investment, and in turn reduce unemployment.
>>1261211
Nigga, a large amount of us are normies. It's another thing were you are surprised by how many people are into it.
>>1261313
>a large amount of us are normies
Yes exactly.
>>1260590
Yes, because someone storing their money even in a bank account takes it out of circulation completely and does not increase the the bank's reserves so that it is capable of lending out more for useful activities. Oh no wait...
>>1260941
>Banks are too big to fail.
that's in the past now, the new slogen is no bank is too big to fail. of course it's somewhat gradual you can't just yank the carpet out under the fat bastards.
>>1260693
That's funny because there's literally no statistic for the business closings, and besides retail sales are higher than ever.
>>1261069
i know and it doesn't sound good at all.
>>1261398
Banks aren't lending.
>>1261427
That's arguably not true. The loan stock is larger than ever before and average loan sizes are up as well. Yes they are lending.
>>1260662
>The added liquidity sits on the sidelines of the banks because the trust just isn't there. They don't want to make more loans.
I can't tell if you're being serious
>Once the boom really gets going, we will definitely have some severe ketchup-bottle inflation. This is why the fed is being so dove-ish these days.
Retard.
>>1260542
Because most of that money was used to buy equity assets, and derivatives, easily exporting the buying power into a "product" and allowing the rest of the market to stay relatively, and relatively is a strong word here, untouched.
>>1260941
tell that to Lehman Brothers lmao
>>1261069
>traditional commercial banks
Commercial banking? Who gives a fuck
>>1261295
JP Morgan, as JP Morgan is a financial institution
>>1261045
Yes I agree. however thats pretty much what has happened except they only gave it ALL to a few people. I personally think they are practicing socialism NOW. Yet everyone blames the capitalist.
>>1260941
You have to ask yourself IF USA is NOT run by a socialist government then why did they give free money to the banks?is that sort of half way socialism? but because US GOV only gave free money to bankers they still pretend to be capitalist?I think this is the heart of your economic issues.
>>1260542
>How come QE hasn't caused a massive explosion of hyperinflation?
It has, but primarily in areas rich people spend money on; luxury <x>, equities and so on. This is because rich people are the only people who saw any of that money.
>>1261629
>It has, but primarily in areas rich people spend money on; luxury <x>, equities and so on.
Also these areas don't really count toward inflation figures.
>>1261621
I would also question the lower levels of US government and related bodies, How many people with Socialist ideaology are working for them? This is perhaps were the bulk of the economic problems stem from.
>>1261629
Is giving free money to these rich people still socialism, I think it is.
>>1261574
>>1261621
>>1261641
You guys do realize that the TARP (which was pretty much the largest bailout package, and what everybody is referring to when they say "gib moneys to da bank") was pretty much fully paid back by all the banks after the crisis. It's not like they just too the money and ran.
https://en.wikipedia.org/wiki/Troubled_Assets_Relief_Program#Participants
>>1261641
No I don't think so. In fact I think socialism would be confiscating their riches, rather than multiplying them.
>>1261649
yup in socialism everything is owned by the "people" and by that of course they mean the state. and everything is distributed and provided by the state.
of course such an economy will run a huge deficit. which can only be supported by state organized international criminal activity and or huge ever growing debt see north korea.
>>1261648
Where do you think that money came from? It's just new debt that was printed out of thin air.
>>1260542
Because the money went to banks not people. People's spending causes inflation. Lack of capital among people leads to deflation.
>>1260542
The money is going to those who already own huge chunks of non-cash assets, i.e. banks and their ilk.
The American consumer or business is a bad bet for lending right now because personal debt levels are off the charts. The people are just going to use that money to pay off debt, which will flow back to the banks. Where's the profit?
Invest banks can pump the money into the markets. Institutional banks are capped on how much they can have in the market but they're just sitting on the cash because lending to new business in America is a bad bet.
The real way to get the country out of its rut is to reduce household debt. But that would harm creditors, and creditors are the ones who bankroll elections.
Make sense?
On a related note, what is a good asset to have for when the current debt bubble collapses?
>>1261718
Bullets.
>>1261586
So much armchair tier retard info in this thread
"Free money to the banks"? You act like the 4 trillion in AE money has become yachts - yes the fact that they didnt go under allowed them to give themselves bonuses but youre getting way off topic
The QE money is never going to interact with the normal banking system - it cant cause inflation if it isnt apent on goods and services
>>1261660
Dude - go read up on "money creation" and "accounting" this zeitgeist tier reasoning isnt gonna fly around here
>>1261718
>On a related note, what is a good asset to have for when the current debt bubble collapses?
Cash.
>>1260912
I'm safe though, guys...right?
R-R-right?
>>1261855
If it is physical and in your personal posession the answer is yes. Do remember that there is historical precedent for governments confiscating gold and silver, so keep that shit secret and safe.
>>1261827
Retard alert
>>1261718
>good asset to have for when the current debt bubble collapses?
Food, water, water purifiers, electrolytes, secure shelter, firearms and ammunition.
And gold and silver once the dust settles, if it settles.
>>1261860
It's in my reach right now.
As far as confiscation, I have some gold bullion which they could """"legally"""" demand I turn in if they wanted to, but I have more in 18k and 22k jewelry, which doesn't count supposedly.
>>1261827
>what's a good asset for when the debt bubble pops?
>fiat currency, bro!
>>1261903
not him but really though, should we all start buying up gold or euros?
>>1261641
It's only big bad scary socialism if it benefits the middle class. Wealth redistribution from the poor to the rich is perfectly acceptable. :^)
>>1261906
Gold, silver, and commodities I guess. The basics.
Of course most people have no idea what the fuck is coming down the pike and think that printing currency to no end is fine and sustainable, so they'll be chimping out and raping and rioting when it all goes to shit, which is why you should have fundamentals covered first.
It's not like you have to sink every cent you have into gold and silver, but god damn. You tell people they should have some and they look at you like you're telling them about a mystical relic or some shit.
it's bad only if someone else does it, isn't it?
>>1261648
how dare you bring reason into our reddit-tier le banksters circle jerk
>>1261648
you know that not even has it been paid back, but it's been paid back in multiples? the govt has profited massively from QE
>>1261953
>Of course most people have no idea what the fuck is coming down the pike and think that printing currency to no end
You obviously have no fucking idea what you're talking about if you think that QE or stimulus packages are 'printing currency to no end'.
Go on smart arse tell us whats comming down the pike. You think that gold will save you? Think again dipshit, gold is more volatile than $ and always will be. Hense why we threw away gold back currency decades ago
>>1262123
It is super cringey in here.
Hey everyone postig about an inflationary apocolypse - what are the two main components of the m2 money supply? Without googling it
What variables influence average liquidity and hoe does the treasury market play into this?
Oh whats that? Youre knowledge of the subject all comes from the movie "zeitgeist" and listening to peter schiff?
Ok well the grownups are busy little dearies so run along
>>1261903
If you time it correctly, technically he's right.
>>1261866
What would you rather be holding?
>>1262128
>You obviously have no fucking idea what you're talking about if you think that QE or stimulus packages are 'printing currency to no end'.
Never said that QE had to do with printing currency. But are they printing currency? Fuck yeah. Is that good? Fuck no.
Is QE good? Fuck no.
>Go on smart arse tell us whats comming down the pike
Ok, dumb busted cunt: the "next" recession, which is really just the same one we had in 08, will be worse to such an extent that it could well be a full depression.
>You think that gold will save you?
In part.
>gold is more volatile than $
Good point, the dollar has been steadily and predictably losing nearly 100% of its purchasing power in 116 years. Very safe investment :^)
Fiat currency, with its 100% failure rate throughout history, is definitely the way to go!
>Hense why we threw away gold back currency decades ago
It was thrown away to remove a limit on how much currency can be printed, thereby making it easier to expand the U.S Empire and social programs with which to bribe voters.
>>1263560
>which is really just the same one we had in 08
i'm kind of glad someone else also recognizes this here. kinda sad about what's coming.
>>1260542
obvious answer is they did a good job to counteract massive deflation.
It will correct.
>>1264042
Well they just pumped a ton of currency into the market basically and none of the fundamental problems were solved or practices changed or stopped.
Nothing has improved. The most they did was postpone, and make it even worse than it had to be in the process.
I wouldn't be surprised if it happened this year, conveniently before the election.
>>1264132
my only regret is i don't have the capital to really profit from the ensuing shitstorm that inevitably coming. bought some silver might come in handy at some point. but it's kiddy grade really.
>>1260542
cause people are catching up to it and investing and cashing out of it at a similar rate as its growing inflation or hyperinflation only happens when changes are too drastic and supply way overextends and outpaces demand or vice versa
>>1264142
what did you get?
I have a total of 1/2 troy ounce between 1/10 oz coins and 1 to 2.5 gram bars, and also some jewelry.
My silver is about 2/3rds generic, RMC, Elemetal, and Sunshine Mint rounds and bars. 1/3 government minted, Canadian Maple Leafs and Cougars, British Britannias, and American Silver Eagles that I got on a one day sale (they're not worth it otherwise).
>>1264132
They didnt pump any money into the market you monkey
Jesus does anyone in this thread read?
The QE money is not in circulation and is just barely even being tapped by shadow banks. Its locked out of circulaion.
Its just liquidity on the feds balance sheet - no ones even cashing out of the s&p (which would take some of the money into circulation)
>>1264167
i bought a 100oz in a trial purchase. i wanted to hold like 500 at least but prices went up as my order was delivered.
>>1261930
With interest Rates up in june property bubble busts...I'll hold off till then.
>>1264196
I've tried to explain this 100 times. It's no use here. These people just want to believe what they want.
>>1264635
thing is is that everyone is talking about rate hikes in june
meaning that standing against the herd is going to make you the most profit
>>1264042
is it bad that I wanna see the world economy collapse and watch all these consumerists lose everything?
>>1264167
I personally only bought about 300oz of silver which is about 30-40% of my assets
>>1264635
Dont people lock in 30 years at the same interest precent? Rate hikes wont affect them?
>>1264901
I think a standard fixed mortgageis up to 4or5 years. different for each bank. I don't think they'll lock one in for 30 years those lock in rates are usually higher or lower than the floating rate based on what that bank thinks interest will do in the future.
>>1265040
so after 4-5 years they gotta renew at the going interest rate and that's when people are gonna get fucked?
>write out a huge post
>chat box doesn't accept backspaces fast enough and the browser simply takes me back to the front page
Short version: You're looking in the wrong place this time. You're hotpocket prices are the least of your concerns.
Cheaper capital equipment, share buybacks, dividend payments with credit.
Look at the huge inventory oversupply that companies have...they had too much money and made more than the consumer actually wants.
>>1264901
Not everybody gets the same 30-year fixed rate though. Credit plays a large role here both in the credit of the person taking out the loan and the overall health of the credit markets at the time the loan is taken out.
>>1265059
thats exactly right the idea is you can at least save a few bucks...but these days in australia the go is to switch banks entirely and go to one which is offering a better interest rate...ther are cost involved in doing this( sometimes the bank you are switching too will cover those costs)
>>1260542
It did.
Asset inflation
>>1265338
it pretty much only blew the stock market up.
>>1265062
also consider who the biggest spender is - the government
if the government is running a deficit what does that do? inflationary or deflationary pressure?
what if its running a surplus?
this fucking thread man
>>1265846
and again - no one is cashing out the "chips" in any meaningful way - how much would people have to cash out and then actually SPEND in normal markets for it to effect the dollars value? a HUGE fucking amount
barely any QE money has trickled in through the shadow banks - its enough to puff up the s&p but not nearly enough to effect inflation
>>1260542
Because none of the money leaves the banking system.
QE = changing bank securities/reserve accounts to lower interest rates. The Fed debits the securities accounts and credits the reserve accounts which doesn't increase any financial assets. It just changes the composition from interest bearing securities (bonds) to non-interest bearing securities (cash).
Not a single penny ever gets into the real economy to create inflation. You could do $500trillion in QE and it still wouldn't create inflation.
>>1260703
>cant tax the rich or theyll leave
Im so sick of this lie. If they take their business elsewhere another will pop up to take its place. Supply will rise to meet demand its a zero sum game
>>1265882
Shh - they decided a hundred posts ago they didn't care
Just let the circkle jerk continue
>>1260542
Banks get paid interest rates to keep the money locked up at the Fed, if it would enter the economy the value would probably go poof.
http://www.bloomberg.com/news/articles/2016-02-10/this-is-why-the-fed-is-paying-interest-to-big-banks
Is the jewish bankers owning the fed just a /pol/ meme or is it real?
>>1264196
>T-T-They didn't p-p-pump money into the market, a-am I right guys? G-guys?
Meanwhile the European Central Bank announces that come June 2016, they will start buying corporate bonds!
https://www.ecb.europa.eu/press/pr/date/2016/html/pr160421_1.en.html
B-b-but that's not pumping money into the market, that's controlling the liquidity and the monetary aggregates, r-right?
>>1266420
bike balloney said it will be the biggest wealth transfer of the century.
i'm starting to believe him.
>>1265886
>it's a lie because I don't believe it
The problem is the demand can be met from overseas (low tax) supply.
>>1264245
100 oz how? One bar, increments, what?
The most I buy in one bar is 10 oz. I have a few of those. Then several more of 5 oz, then the majority is in one ounce rounds or bars.
>>1264897
Nice, more than I have at the moment.
You go full government minted, private, or both?
>>1267536
100 maple leafs
>>1265882
Why lower the interest rate to zero ? what does that do.
>>1260617
>The all-knowing, all-powerful free market who we normally worship and use to justify our actions fucked up
>free market
>>1266471
So make them compensate for going 9verseas to sell their product in America that will bring it back up to the normal taxes businesses stationed in America make.
Therein, unless they want to lose their largest consumer demographic and probably lose a large part of their fortune then they will pay the taxes
>>1267687
Then prices of products go up and growth slows down.
You're analogising the failures of the current European Union senpai
>>1267695
But wouldn't people just then not buy them and go extra lengths to gett cheaper things if they were too expensive? I'm not talking about banks of course. But places like mcdonalds and burger king and taco bell and walmart and kmart all are around because they are cheaper than local competitors. So if they take out the price benefits and actually become more expensive, wouldn't people just not buy them and they would again, still lose consumers. So they would have to drop the price in order to get a profit off of their items
>>1267707
I mean the problem with the european union is that they in all reality, create very little profit in general for the europwan union because there are less consumers in it so they can easily leave. But America has the largest number of consumers out of any country. So that would really hurt more than european countries with populations of less than or just about a few million people who are not all even consumers in a large way like americans are
