Wow, I didn't realize that $600 billion was involved every time someone moved money from a savings to a checking account. Learn something new every day...
Isn't it just semantics? Isn't the result more important? Like, if banks were just sitting on those reserves, then we shouldn't see anything inflating. Do you see anything inflating?
Uh, cotton, wheat, gold, oil. You know..things that aren't hedonically-adjusted. But that's another discussion.
Not through QE. I do support "printing" money by the government though. I'm not talking QE, I'm talking budget deficits. The government should aggresively cut income taxes in order to increase the amount of money that's available for spending and debt retirement by families. Contrary to uninformed believe this does not mean that our children will have to pay off more debt. The government is not operationally constrained by the issuing of debt. Government debt is issued instead as way to absorb the increased private sector savings that go along with the public sector deficits. Public deficits mean private surpluses and that's what we need to see right now.
Exactly. Once he said this he leaned forward, crossed his legs, held his arms close to his body, and made an expression with only one part of his face. That is a classic sign of lying.
I don't have any ideaological problems with your other points, though I think it's likely the U.S. will default on its debt one day (rather than hyperinflate) regardless of what they do now. Back to QE. We'll have to agree to disagree. The $600B has to originate from somewhere. It's not a transaction cost. In the two analogies below, it's the (b) scenario. (a) I walk into a bank, open a new checking account by transferring all the money from my checking account. Nothing gained or lost. Zero sum game. (b) I walk into a bank and walk out with $5,000 in U.S. Treasuries without touching my checking/savings accounts or spending anything else out-of-pocket.