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QE2 is useless?

Marshall Auerback, a senior fellow at the Roosevelt Institute and a consulting strategist at Pacific Investment Management Co., says zero interest rates are pointless because, net-net, there are no aggregate benefits to the economy because what one borrower gains, one saver loses.

True, but then he goes on to recommend direct payments into the economy by government.

If that works, why not advocate  simply giving every citizen $20,000?  Or, if that doesn’t work, $60,000?  Or, if that doesn’t work, $1,000,000?

QE2 is not useless.  Not at all.  It’s going to kill the economy with uncertainty. We’ll return to barter and people will vomit out this confetti rubbish.

Categories: Predictions
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