Why QE is destroying jobs

[johnyj]

"Moreover, it is well-documented that quantitative easing increases inequality.  Quantitative easing doesn’t help Main Street or the average American. It only helps big banks, giant corporations, and big investors.

Too much inequality causes economic downturns and decreases aggregate consumer demand … and companies fire workers when demand decreases.  So quantitative easing also indirectly – but in a very real fashion – destroys jobs by destroying consumer demand."

http://www.washingtonsblog.com/2013/05/the-fed-buying-more-assets-until-unemployment-falls-is-like-a-medieval-doctor-bleeding-a-patient-with-leeches-until-his-iron-deficiency-goes-away.html

[1713503129]

1713503129

[Pumpkin]

Savings drive the economy. QE destroys savings and thus cannot help the economy long term.

People who wish to learn some real economics should study the Austrian school of economics.

[notme]

Savings drive the economy. QE destroys savings and thus cannot help the economy long term.

People who wish to learn some real economics should study the Austrian school of economics.

That's a good place to start, just don't stop there.

[tinus42]

Savings drive the economy. QE destroys savings and thus cannot help the economy long term.

People who wish to learn some real economics should study the Austrian school of economics.

The well-connected banks and hedge funds make huge short term profits and that's all Bernanke & co. care about. They will be long gone when this turns sour. 

[LiteCoinGuy]

"Moreover, it is well-documented that quantitative easing increases inequality.  Quantitative easing doesn’t help Main Street or the average American.

I agree. Its for the wallstreet.

[mekanical]

All of this true.  Keynesian-style macroeconomics and central banking philosophies are not only the foundation behind university curriculums, they are apart of the CFA examination.  It's an endless spiral of miss-education. 

[tinus42]

Just read ZeroHedge.com, that blog shows how disastrous the FED's policies are. And the same is true for the ECB and the BOJ.

[mekanical]

Enlightening to see that everyone is on the exact same page here.  I guess its not too much of a surprise that the bitcoin community is bit more economically savvy then the average smart person.

[rpg]

"Moreover, it is well-documented that quantitative easing increases inequality.  Quantitative easing doesn’t help Main Street or the average American. It only helps big banks, giant corporations, and big investors.

Too much inequality causes economic downturns and decreases aggregate consumer demand … and companies fire workers when demand decreases.  So quantitative easing also indirectly – but in a very real fashion – destroys jobs by destroying consumer demand."

http://www.washingtonsblog.com/2013/05/the-fed-buying-more-assets-until-unemployment-falls-is-like-a-medieval-doctor-bleeding-a-patient-with-leeches-until-his-iron-deficiency-goes-away.html

the jobs were destroyed before, QE is only catching up in devaluing the dollar. This is why BTCs are trading at well over $100: store of value

[Jumpy]

I doubt the OP is even familiar with which assets are being acquired in QE. It's not a handout and its primarily in support of bonds for growth projects. It's true that this has a broad upward effect on the market, but that's because the market believes that it has a positive effect on consumer spending. If the market believed that QE would hurt jobs, it would put downward pressure on equity prices (and probably still buoy liabilities). If you think you are smarter than the market, you need to catch up to at least the 1700's on your economy reading.

Ready.

Set.

Flame. 

[ronimacarroni]

It's not a handout and its primarily in support of bonds for growth projects.

Are you implying the government is investing the money they print on something useful?
Last time I checked America's infrastucture got a D+.
Why didn't they spend that money on that when they did the stimulus package instead of tax break gimmicks.
We're trillions of dollars in debt and have nothing to show for it.

[notme]

It's not a handout and its primarily in support of bonds for growth projects.

Are you implying the government is investing the money they print on something useful?
Last time I checked America's infrastucture got a D+.
Why didn't they spend that money on that when they did the stimulus package instead of tax break gimmicks.
We're trillions of dollars in debt and have nothing to show for it.

There was a lot of construction happening on the interstates between WV and Illinois last weekend.

(not that that has anything to do with QE)

[joulesbeef]

part of the reason for QE is greenspan kept interest rates too low until the bubble popped leaving us no traditional means of monetary policy.

[xxjs]

It's not a handout and its primarily in support of bonds for growth projects.

Are you implying the government is investing the money they print on something useful?
Last time I checked America's infrastucture got a D+.
Why didn't they spend that money on that when they did the stimulus package instead of tax break gimmicks.
We're trillions of dollars in debt and have nothing to show for it.

There was a lot of construction happening on the interstates between WV and Illinois last weekend.

(not that that has anything to do with QE)

It could be used as a reason to print more 

[GoldSilverBitcoin]

Just wait til dialysis kicks in....

[smoothie]

I'd say QE is not destroying jobs more so than destroying the purchasing power of the currency issued to people who work at these jobs.