Does “Quantitative Easing” Really Accomplish Anything ? Yes, if you are trying to hide toxic debts, but it will do nothing for the economy at large.
The Fed is terribly afraid of deflation (i.e. declining asset prices), as this would magnify the enormous bad debt problems of all their banker friends. As such, the Fed is desperate to create inflation in any asset class they can and their last resort is ‘Quantitative easing’ (i.e. printing worthless paper to buy government debt and then transferring the bill to the US taxpayer by making up their own accounting rules).
So, Quantitative easing is of course code for ‘Mindless money printing’, and it has worked as planned to create inflation (stocks and commodities have skyrocketed to artificial levels over the past several months), but does this solve the underlying debt problems encumbering the U.S. economy ?
No…the debt must somehow be removed from the system. The Fed can try to make it disappear by ‘inflating it away’, but as we’ve seen, this causes other problems like oil price spikes, and cotton price moonshots. There is no painless solution, we can only delay reality and we cannot print our way to prosperity.
Orwell and “Quantitative Easing:” The First Step to Solving a Problem is Stating it Correctly
“quantitative easing” …..creates no real resources whatsoever, and whatever “ease” it might provide will be more than counterbalanced by painful side- and aftereffects.