QE3 comes finally, US loots the world again

Revolutionar

simple fact, Bernanke is much better than give him credit......................................


QE 3 can be interpreted as well considered, well planned.....................when the market is at multi months high....................


this shows the hands are not forced by panic.................................


I like it.................................

Revolutionar

and if  it helps Obama gets re elected.even better.................................

Everynowhere

Its a preposterous idea and i think it was meant tongue-in-cheek.  Not so preposterous though according to some commentators for Germany to put their hands in their pockets and pay off Greek debts

I am quite serious. Assume all PIGS states could start over with zero debts - what makes you think that they wouldn't accumulate new debts soon?

You see, our current political and economic system sets a very strong incentive for politicians to cut taxes and increase expenses, doesn't it? As a politician, you are considered sucessful if you achieve tangible results - and those have to be paid for. And you will be reelcted if the economy runs well - which it does if you spend much and ease taxes. Debts will have to be taken care off by your successor... You see thise behaviour in veritually all representative democracies (including the US).

This used to work, as governments could simply print more money when debts grew too much, so inflation took care of the issue (which is why countries like the US and Japan don't struggle, ableit having similar debt levels like the PIGS). In the Euro zone, this is no longer possible - which was also the reason why the nations had to pay considerably lower interest rates after entering it.

So if we don't change anything and another country simply pays for our debts, we will simply buy time - but the issue would still not be solved.

St_George

Everynowhere Post time: 2012-9-14 20:36
I am quite serious. Assume all PIGS states could start over with zero debts - what makes you think ...

A Banking and fiscal union where all accounts are centrally scrutinised.

hongxie

It is a fundamental failure of the modern world.

Meddling by governments never fixed any problem.

St_George

They let Countries into the euro on doctored accounts.

Everynowhere

A Banking and fiscal union where all accounts are centrally scrutinised.

THAT would be a solution indeed - but this solution is even viable now, that the debts exist. A bailout is by no means necessary to solve the issue. It would even destroy the trust of the markets and push up interest rates for the future Union...

So let's hope that our leaders listen to your advice and unite the states of Europe further, so that Europe's and our entire world's economies may return to growth..