Home > Miscellaneous Musings, Predictions > Even the shills are exhausted

Even the shills are exhausted

I’ve seen several servile shills for the banking establishment try to justify QE2Infinity.  They can be summarised as follows:

1. QE won’t have much of an inflationary effect, or any effect at all – so no need to worry children.  [To which I respond: WHY THEN DO IT AT ALL???]

2. QE is not printing money.  Central banks are printing money to buy bonds, not dumping dollars out of helicopters. [And the difference is, precisely…what?]

3. QE is intended to lower longer term interest rates, thereby encouraging lending and spending. [HOW, exactly?  Are the banks going to suddenly lend to unemployed and/or families bankrupted by the housing bust simply because they’ve been given more digits on their balance sheet?]

4. QE can’t cause hyperinflation when there’s high unemployment and excess capacity. [Why not?  That’s the only circumstance when hyperinflation DOES occur!]

5. Opponents of QE are tin-foil hat wearing ideologues and crazies and austerity-junkies who don’t understand economics and want people to suffer.  Ignore them.  [Err… excuse me… stepping aside from the torrent of name-calling and abuse, you have to face a simple fact:  You can’t spend money you haven’t earned and don’t have.  When you’re bankrupt you stop spending because you simply can’t continue – not because you don’t want to.  Austerity junkies are just pointing out this can’t continue forever.  At some point governments go bankrupt or hyperinflate to death.  Pointing out that fact is not being an austerity junkie.  Aside from (of course) this slanderous accusation being pure ad hominem]

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