Out of The Pot?
Over at a financial forum...
BiodieselChris commented: as we now have learned: QE = deflation (something I was very wrong in predicting back in 2010 — live and learn!)
"Wood goes on to make the point that QE is deflationary because it shrinks net interest margins for banks via depressing treasury bond yields. It also enriches the already wealthy via asset price inflation but they do not raise their consumption in response, because how much more shit can they possibly buy? Finally, it leads to a preference of share buybacks vs investment spending because the payback from financial engineering is so much easier and more immediate."
We Natter: We concur, but careful not to conflate deflation of assets with the cost of living. Despite media narrative, QE = STAGFLATION. A stagnant economic malaise combined with inflation, which is what we suffer. Inflation is ALWAYS present, understated or otherwise, it is the bane of the banksters existence. Deflation only occurs in the sense that an overinflated ASSET bubble can deflate. Your housing, insurance (home, car), medical, education, food and energy keep going up in REAL cost, while your REAL wages keep going down. Isn't this warm and cozy? This is the Frogs in the Pot phenomenon that occurs while we sleep. Through their bought and paid for henchmen, the banksters achieve this in a manner which not one man in a million is able to diagnose. OUT! of the pot that is…
BiodieselChris commented: as we now have learned: QE = deflation (something I was very wrong in predicting back in 2010 — live and learn!)
"Wood goes on to make the point that QE is deflationary because it shrinks net interest margins for banks via depressing treasury bond yields. It also enriches the already wealthy via asset price inflation but they do not raise their consumption in response, because how much more shit can they possibly buy? Finally, it leads to a preference of share buybacks vs investment spending because the payback from financial engineering is so much easier and more immediate."
We Natter: We concur, but careful not to conflate deflation of assets with the cost of living. Despite media narrative, QE = STAGFLATION. A stagnant economic malaise combined with inflation, which is what we suffer. Inflation is ALWAYS present, understated or otherwise, it is the bane of the banksters existence. Deflation only occurs in the sense that an overinflated ASSET bubble can deflate. Your housing, insurance (home, car), medical, education, food and energy keep going up in REAL cost, while your REAL wages keep going down. Isn't this warm and cozy? This is the Frogs in the Pot phenomenon that occurs while we sleep. Through their bought and paid for henchmen, the banksters achieve this in a manner which not one man in a million is able to diagnose. OUT! of the pot that is…
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