Post
Topic
Board Economics
Re: Why does anyone pay attention to people that study "economics"?
by
picolo
on 28/01/2015, 11:11:07 UTC
If you create more money, the real value of the existing money should go down. There is the question of who will enjoy this new money. In the case of QE it seems to be the governement, stocks holders, banks and maybe some people who have debt so a minority of the population.

I think you mean most of America. The poor enjoy QE as well as banks. By the poor, I mean people obsessed with buying shit they don't need with money they don't have.

Banks enjoy it because they can now lend money at better rates to people who don't need that money in the first place. Lower interest rates allow the poor to stay poor (by buying extra shit) and the rich to get richer (taking enormous loans at low rates to facilitate greater business opportunities cheap credit allows). It hurts everyone depending on the way you look at it.

The American Economy is based on debt and the federal budget and the commercial balance are in deficit every year which will end in tears.