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5 simple facts about US ‘easy money’

29.10.2013 07:47

After the US managed to avert a default, world financial headlines shifted from “US government shutdown” and “debt ceiling” to another term – “quantitative easing”. RT explains what QE means and why everyday people should care about the Fed's decision.

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Comments (28) Sort by: Highest rating Oldest first Newest first

 

Nina 17.06.2014 15:02

Since they are printing money, not sure how do they control inflation. Anyhow their economy should collapse as a result.

 

D F 29.11.2013 18:33

Big gov means Big interest (WEALTH)
Big gov mean big money FLOW or LOANS 100% debt.

 

D F 29.11.2013 18:32

one word for the for the creature that spawned from the tribe of Benny-
1.CONMAN
It s one thing to run a confidence game (FIAT FUNNY MONEY)
He bailed out he jumped ship he knows the CONFIDENCE GAME is being discovered.

 

Vegard Foldal Legård 06.11.2013 09:15

Too many dollars chasing too few goods

 

AzoSF 31.10.2013 06:05

This is all a load of bs. QE is just a way to tranfer wealth from the people to the private Zionist banks aka the Federal Reserve. It is a ponzi scheme and the owners and all the people who are supporting this bank should be hung for theft and crimies against humanity. These Zinionsts, using the banking system, have destroyed people's lives and created wars for Israel's interests. It also funded numerous projects that involves stealing country's resources and destroying natural habitats, endangering life on this planet. Hang these mentally ill obsessed fanatics!!!

 

Beryl Desmond 30.10.2013 17:18

In the 1920s you had a gold backed currency, now you just have paper currency with no value at all.
You now have fiat currency, wothless bits of IOU paper with nothing to back it up.
No gold standard since Nixon in 1971
America is bankrupt like UK, just no one will admit it!

 

Brian Wills 30.10.2013 15:42

The only thing that can work is to give people something of value and create jobs at the same time. The environment needs to be addressed. Transportation is at the base of the environmental problems.
Making the movement of people and goods cost less, gives value to all. A system of "hyper loop" as proposed by Elon Musk would be worthy of a global implimentation, and I believe would rescue us all from our present course of certain distruction!

 

Grant Turner 30.10.2013 15:26

To address your points Larssen -

- Debt can be paid off with more debt when the new debt bears a significantly lower interest rate than the old debt. If you've ever refinanced a car or your mortgage, its essentially the same principle.
- Government has the constitutional right to regulate the value of money. Interest free money is not guaranteed in the constitution.
- Interest on debt is paid with Gov't income, or new debt when interest rates are lower.
- Monetary easing is not constant, and is necessary when demand for money is high. Easing in the late 1920's would have prevented the great depression.

 

Johnny 30.10.2013 15:13

"...the money was used to buy debt instruments and junk financial..." with more $$$ available the relative impact of the "bad debt" is reduced? theoretically, increased consumer spending helps the economy...but if nothing of note is manufactured in the USA, doesn't the new $$$ flee the USA to oh Brazil, China, etc?

 

Per Christer Larssen 30.10.2013 13:54

I am at loss about this article as many like them, in my view fail to address a very fundamental issue; 5 facts

- Federal Reserve Notes are interest bearing instruments
- How can you pay off debt by issuing more debt
- Why does not the US government reclaim its constitutional right to issue interest free money
- Where does the money to pay of the interest come from (rhetorical - it does not exist)
- Issuing more notes without reflecting real economic value creation depletes the value of existing notes in circulation - its inflation

 

Richard Blair 30.10.2013 12:46

What about the 17 Trillion dollars in debt and the 90 Million ither stopped or looking for work??

 

Mike Przlomski 30.10.2013 12:06

When you devalue the dollar it buys less.

 

Mike Przlomski 30.10.2013 12:04

Unfortunately we have a Federal Reserve that simply does not
recognize the inflationary impact on food and energy prices from quantitative easing. But I bet the American people do.

 

Scott C. Newey 30.10.2013 10:13

So, correct me if I'm wrong, but will lower interest rates not boost the number of personal loans as people take the opportunity to rush out and and cover immediate costs with quick cash? How does increasing public-debt spell positive?

 

Ross Johnson 30.10.2013 10:02

The new money created by the private Fed Reserve is propping up the Wall St gambling economy and not supporting real productivity.

It will all totally collapse and they know it.

 

Demos Sense 30.10.2013 09:57

The only way they know how to fix the economy temporarily, print more money and hope for the best. Instead of really addressing the issues.

 

chq 30.10.2013 09:36

N.E.S.A.RA ASAP

 

rogirl 30.10.2013 03:07

The only solution is to deal in other currencies and precious metals and to eliminate the US dollar as a reliable world currency. This is what Mr Khadaffi of Libya was doing before he got murdered and torn appart on live teleivision while Clinton cackled in full view of the world. Print as much money as you like US but soon it will not be worth the paper it's printed on, and your paper money ecomomy ill go up in smoke.

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