pretty much all of europe has austerity measures in place to reduce their deficits.... so by slasing government spending and raising taxes, economic growth should fall but deficit reduce (here i'm thinking it's set in stone that global growth should therefore be headed DOWN) yet FED/Boj easing , QE, pumping trillions into assets....doesn;t this promote growth?!?! shouldn't any growth therefore be a bubble? discuss, i'm a noob.
Welcome to the club of "Mental Confusion". Confusion (from Latin confusĭo, -ônis, noun of action from confundere "to pour together", also "to confuse") of a pathological degree usually refers to loss of orientation (ability to place oneself correctly in the world by time or location) Our distinguished president: <img src="http://images.publicradio.org/content/2008/04/02/20080402_bernanke_redeye_18.jpg"> P.S. If we are going to talk about should, then: My P&L should not be where it is today. Here is what I figured so far. If QE II comes along everything will go up but the dollar. Real-estate, Commodities, Bonds and the market are going up. What about them apples? Actually everything is going up as we speak but I am short because of few âshouldsâ and my P&L is negative in a big way.
You are comparing different actions with different objectives. ECB: charter is a zero inflation policy FED: charter is a balance between inflation and unemployment basic stuff. As soon as you understand this, then the next step is easier. EU: a loose monetary union controlled mainly by German oligarchs and a few other oligarchs with main objective to preserve the purchasing power of the rich (hence the ECB charter) Basic economics: how can you stimulate growth by increasing taxes and cutting spending? No way. EU policies ensure that the lenders will get most of their money back at the expense of the future of the union. The lenders are the Germans. They plan to bail out. USA and the FED are doing the right thing IMO. When you implement economic policies you have to think of people. Real people with families who are struggling. The European oligarchs do not care, they have proven that throughout history. All they care is to have their vaults full of money. This is one reason people from Europe migrated to America, to escape from the slavery of the rich. A little or more inflation is to the benefit of the poor people. Do not let the propaganda blind you. Inflation transfers wealth from rich to poor, the borrowers. After each inflation cycle, there is a very long growth cycle. Do not listen to these talking heads. Money printing is good, when it is...
Very well said. It is nice to make fun of the FED but so far they have done a good job. Also quite transparent if one lissens carefully. I am mad because the FED said go long but I went short. The end of the day it is my fault.