Ben, it is your move. Obama statistics said the economy is improving. Financial indexes are skyrocketing. You did it, Ben. Your magic saved us all. So now is time to rest. QEs are no longer needed. When will you take your vacation, Ben…?
Out of this joke, the question is very important. When will FED stop printing money. The excuse up to now was that it is needed as a stimulus for the economy. So now, at least officially (if we can believe the statistics) the economy is going up. It is time to stop the printing press and even to think of somehow (I don’t know how, but Ben is genius and mush know) extracting some of the dollars that were injected on markets.
Of course we are not fools. The economy is going up in terms of inflation. Even if the statistics is right, the new jobs are de facto less paid due to inflation. I.e. it is not clear if really the economy is going up. It is absolutely possible in non-money terms – as a quantity of produced goods and services it to go down. And additionally, the QEs are not stimulating measures. They are emergency hospital measures of financing the budget deficit. And as it is still enormous, after the funny cuts that started March 1st, so much money is still needed to buy bonds. I.e. QEs cannot stop.
But today we can understand better the truth about QEs. If Ben is honest he must just recognize that “stimulus” is bullshit. And the money print is for the same it has always been for millennia – for saving stupid governments from bankrupt at the expense of all society…
March 14th 2013