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Just Another Right Wing Extremist
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Monday, July 13, 2009

Quantitative Easing

I just love that term. It makes hyperinflation sound soothing and comforting. Think of it as a laxative for the economy.

Here is the heart of the matter from Wiki:
In practical terms, the central bank purchases financial assets, including treasuries and corporate bonds, from financial institutions (such as banks) using money it has created ex nihilo (out of nothing).
You have to watch that "out of nothing" part. Conservation of matter and energy and all that stuff.

The government just waves it's magic wand and "poof" a rabbit or a trillion dollars just appears out of thin air. The difference is that the magician is putting on a show to entertain you while the government's actions are not entertaining. In the end it will be your checkbook that is put in the box and cut in half.

Are you ready?


The Other Mike S. said...

Most people just don't give a damn. We take the money out of one pocket, and put it in another. There is absolutely nothing backing our currency, so they just keep printing up more of it. Why not? It pays the bills...

Anonymous said...

For the first time ever, we did not get a raise this summer. So as inflation increases, I won't be able to keep up with the increased cost of living and my quality of life will decline. This is also due to the insane practice of just printing money with nothing to back it.


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