View Poll Results: Is QE Socialism for the Rich and Bankers?

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  • Yes

    9 81.82%
  • No

    0 0%
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    2 18.18%
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Thread: Is QE Socialism For the Rich and Bankers?

  1. #21
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    Re: Is QE Socialism For the Rich and Bankers?

    Quote Originally Posted by MildSteel View Post
    Because you are a ok guy, I'll try to clear it up, if you will listen. The intent of posting the poll was not to invite opposition so that I would have the opportunity to hammer. The intent was to discuss and to make a point. Yes, I feel strongly about this issue and as a result, my response might be strong to views that I do not feel are accurate. It is nothing more than that. There is no reason for you to feel that I have created a poll with the intention of hammering someone. Is that ok?
    You don't need my approval.

    It's been my experience that when a poll is run it's meant to see where people fall on the issues. But it's your thread, so I guess you can do whatever you want.
    President Donald J Trump, 45th President of the United States of America. A victory born in the hearts and minds of Everyday Americans

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    Re: Is QE Socialism For the Rich and Bankers?

    Quote Originally Posted by ocean515 View Post
    You don't need my approval.

    It's been my experience that when a poll is run it's meant to see where people fall on the issues. But it's your thread, so I guess you can do whatever you want.
    I know I don't need your approval, but since you appear to be a sincere person, I thought I would make an honest attempt to clear up any misunderstandings that you might have with regards to my intent. IF my attempt means nothing to you, that's fine.

    In polls where people state their position(s) on certain issues, there is discussion, sometimes that is challenging in nature, and that is to be expected. Again, there is no good reason for you to feel that the intent is to provoke a response so that a "hammer" can be brought down. Unless maybe that's the type of thing that you and others do.

  3. #23
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    Re: Is QE Socialism For the Rich and Bankers?

    Quote Originally Posted by MildSteel View Post
    I know I don't need your approval, but since you appear to be a sincere person, I thought I would make an honest attempt to clear up any misunderstandings that you might have with regards to my intent. IF my attempt means nothing to you, that's fine.

    In polls where people state their position(s) on certain issues, there is discussion, sometimes that is challenging in nature, and that is to be expected. Again, there is no good reason for you to feel that the intent is to provoke a response so that a "hammer" can be brought down. Unless maybe that's the type of thing that you and others do.
    LOL.

    Whatever. Have a nice evening.
    President Donald J Trump, 45th President of the United States of America. A victory born in the hearts and minds of Everyday Americans

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    Re: Is QE Socialism For the Rich and Bankers?

    Quote Originally Posted by ocean515 View Post
    LOL.

    Whatever. Have a nice evening.
    Same to you!

  5. #25
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    Re: Is QE Socialism For the Rich and Bankers?

    Quote Originally Posted by MildSteel View Post
    It can do that, but in this instance the intent should be clear to the discerning mind. The intent is to convey the notion that Fed policy is creating enormous wealth disparity. That should be clear.
    It should also be clear that which party is allegedly running the show does not much matter.
    “The reasonable man adapts himself to the world: the unreasonable one persists to adapt the world to himself.
    Therefore all progress depends on the unreasonable man.” ― George Bernard Shaw, Man and Superman

  6. #26
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    Re: Is QE Socialism For the Rich and Bankers?

    Quote Originally Posted by DaveFagan View Post
    USA wages had priced much of USA manufactured goods out of World price ranges. The Oligarchy must drive wages down to keep the same structural manufacturing operation and ownership that they control. The Oligarchy/Banks/Traders/Stock Markets move paper around to generate ever larger profits. These profits are not tied to labor/manufacturing/productive industries, but just paper profits. The massive volume of this wealth is allowing banks/hedge funds/traders to control other Countries and purchase productive assets that use overseas labor and they do this with a "fiat paper" whos' real value is based upon faith. Maybe they can get the Pope to give this faith-based money a little boost with a blessing of the faithful. They's sumpin' slippin' heah, don't ya' know?
    Excellent points. The game is rigged and it has been since the beginning.

  7. #27
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    Re: Is QE Socialism For the Rich and Bankers?

    QE is basically the sale of high-yield, no-risk bonds at historically low (and artificial) interest rates. Of COURSE it's a giant kickback to the oh-so-punitively-taxed rich.
    Freedom of speech is not freedom from criticism.

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    Re: Is QE Socialism For the Rich and Bankers?

    Quote Originally Posted by ttwtt78640 View Post
    It should also be clear that which party is allegedly running the show does not much matter.
    Agreed. Indeed one will not become President of the United States unless he is willing to sign up to that way of doing things.

  9. #29
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    Re: Is QE Socialism For the Rich and Bankers?

    Quote Originally Posted by Kobie View Post
    QE is basically the sale of high-yield, no-risk bonds at historically low (and artificial) interest rates. Of COURSE it's a giant kickback to the oh-so-punitively-taxed rich.
    Yep. I certainly appears to be that way. Man, think of it, having a cash cow like the Federal Reserve at your disposal. What a concept.

  10. #30
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    Re: Is QE Socialism For the Rich and Bankers?

    Quote Originally Posted by MildSteel View Post
    That was the stated intent. However, what makes Fed activity suspect in this instance is that they kept up the activity despite the well known fact that it was doing very little to stimulate bank lending. It therefore begs the question, was the intent solely to prop up the balance sheets of banks?
    "Solely" the intention, no. But it was a listed intention based on how QE1 was to be handled and it ended up being a key reason that banks did not lend it all out. The sobering truth is banks do not lend out reserves they have held as deposits at the Fed gaining interest.

    Again, QE by design is about buying problematic assets off the books of the banks as a way to free up capital to lending ratios. So yes, a net effect is cash on hand ("propping up the balance sheet.") Problem is regulations demanded this. You do recall all the "stress tests" the major banks had to agree to back in the 2009, 2010 and to current don't you? The Fed QE1 program helped with that. If things had gone to plan then Congress would have made up the difference by effecting aggregate demand by infrastructure and technology spending. But Congress did a mediocre job at that part so all QE really did was shore up the bank's cash positions and allow the equity markets to go on a historically quick bull market run to the point of a bubble.

    If you look at how QE really ended up effecting bank deposits to loan ratios you would see the below graph. The reason the lines were no longer in sync post QE efforts is the difference on what the Fed buys and from whom. When the Fed buys from the banks the exchange is asset off the books to reserves, deposits do not change. When the Fed buys from the public, the banks become the intermediaries of the transaction. "Created currency" that the public receives for selling the asset to the Fed ends up as deposits at the bank (meaning bank deposits rise off those transactions.) QE1 (and arguably all QEs to date since 2008 leaned heavy to bank transactions, meaning a ton of reserves that *do not* end up in the form of cash for the bank to loan out.)

    And the real reason that QE was largely ineffective for the 4th through 2nd income quintiles is between Fed action to date and *lack* of government action to date overall aggregate demand for this economy was never addressed. Because the economic model of this recovery has not been all that healthy it is no shock to economists why the banks simply decided to make some money in interest paying less on deposits than they receive on reserves. Which also makes sense as overall QE is designed to keep cash off the sidelines but thanks to confusing economic policy that did not happen so well. We also cannot ignore that any positive interest on excess reserves exists almost exclusively because the banking system by design is forced to hold those reserves and pay the insurance fee for associated deposits. Propping up the banks has to be part of the equation with Fiat Money systems, but does not have to be the sole reason for QE efforts.

    In short, you should blame Congress more than we blame the Fed for what ultimately became a wealth based recovery and a race to the bottom 5th income quintile for everyone else. Also, between the Fed and Congress the below was the result.

    Is QE Socialism For the Rich and Bankers?-deposts-vs-loans-jpg
    "Every time something really bad happens, people cry out for safety, and the government answers by taking rights away from good people." - Penn Jillette.

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