1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Qualitative Easing (Froz and Chuck Bao nip)

Discussion in 'South Oval' started by Oldnslo, Nov 11, 2010.

  1. Oldnslo

    Oldnslo Radioman

    Here's what I understand: our government is creating money out of thin air in order to buy its own debt back from the banks currently holding it. $600B or so in play.

    I understand that Japan has done this in the past, but not to the tune of $600B.

    What I don't know and need help with: what happened with Japan's QE experiment? How does all this play out, and how do I protect my family from economic harm?

    I'd assume that QE has a great chance of setting off inflation and that commodities, especially gold, silver and oil, would be places to seek safe harbor.

    what the craphell is going on?
  2. pphilfran

    pphilfran SoonerFans.com Elite Member

    By most accounts it did little...interest rates might have declined somewhat...

    It don't think it will do chit for the US for a year or so....the consumer is paying off debt....lowering the interest rate will not change that fact...
  3. 85Sooner

    85Sooner SoonerFans.com Elite Member

    Japans economy was in the tank for a decade.
  4. XingTheRubicon

    XingTheRubicon SoonerFans.com Elite Member

    I almost feel sorry for US leaders/politicians about 10 to 20 years from now.
  5. Okla-homey

    Okla-homey SoonerFans.com Elite Member

    I'm no economist, but I understand that money can't stay "free" forever (e.g. the current T-bill rate < 1%). Sooner or later, there will be a reckoning. And it ain't gonne be pretty.

    Japan lost a generation's worth of growth because of this kind of stuff.
  6. Okla-homey

    Okla-homey SoonerFans.com Elite Member

    You can't. It's too late.
  7. StoopTroup

    StoopTroup New Member

    Buy gold, gems, silver, Plutonium ;), Platinum, copper....etc....

    Things that might be used to back the money down the road.

    Hopefully the two gold teeph I have will go up in value. :D
  8. soonerscuba

    soonerscuba New Member

    Just a friendly reminder to everyone, Japan's lost decade (90s) was caused by asset speculation during the 80s, and they tried QE from 2001-06. Saying that QE caused a recession is false, it simply failed to pull it out of one. Domo.

    Also, commodities are good right now (I don't think XOM is losing money any time soon). But you don't make money buying at high, and there is an emerging global consumer market that the U.S. is attempting to sell to, so if you aren't risk adverse, I think there are some deals out there.
  9. StoopTroup

    StoopTroup New Member

    texas longwhorn memorabilia will still be worthless in the future.
    Crucifax Autumn and sooner59 like this.
  10. Oldnslo

    Oldnslo Radioman

    okay. my current plan is to buy bullets and wait for the locusts and frogs.
  11. XingTheRubicon

    XingTheRubicon SoonerFans.com Elite Member

  12. dwarthog

    dwarthog Well-Known Member

    Isn't this QE2? As in the second time the feds have conjured up a bunch of cash and dumped it into the economy?
  13. Frozen Sooner

    Frozen Sooner Soon to be Memphibian

    Minor point:

    Quantitative Easing, not Qualitative.

    It's an inflationary measure, fo sho. The idea is to create greater liquidity so we don't have a lending lock-up. I've been somewhat dreading the point when all the business loans aren't going to be able to meet their balloon payments and banks won't have the liquidity to refinance. Looks like they're trying to avoid that.

    However, I confess that I'm much more wrapped up with Federal Jurisdiction than I am finance right now. Ask me a question about habeas corpus and you're likely to get a much more detailed answer right now.

    As I recall, Japan had fairly steady growth through much of the 2000s. As pointed out above, their financial problems were in the 1990s. However, I don't know that you can attribute their 2000s growth to QE. I do know that many of their problems in the 1990s could be traced to lack of liquidity in banks and massive loan defaults.
  14. NormanPride

    NormanPride SoonerFans.com Elite Member

    If you want to read a great fictitious but informational story about Japan's economy, read Akumetsu.

    Some shocking parallels to our own economy.
  15. C&CDean

    C&CDean Administrator

    We just need to go over there and buy up all the prime real estate and golf courses like the japanese did here. Problem solved.
  16. royalfan5

    royalfan5 Superbia in Proelio

    Plus today the commodity markets are getting absolutely smoked because of the strengthing dollar and rising Chinese interest rates.
  17. Bourbon St Sooner

    Bourbon St Sooner SoonerFans.com Elite Member

    I imagine a lot of this liquidity is going to end up in the stock market, because frankly there aren't people out looking for loans right now. The thought is you prop up the market, people see their portfolios grow more valuable and they start to buy.

    I'm not buying any more gold at this point. Eventually this bubble is going to burst.
  18. Blue

    Blue SoonerFans.com Elite Member

    It didn't work out well for Zimbabwe. Of course, we're not Zimbabwe.
  19. Oldnslo

    Oldnslo Radioman

  20. BillyBall

    BillyBall Well-Known Member


Share This Page