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  1. #1
    & Badger, Ratty and Toad Mole's Avatar
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    Unhappy Quantitative Easing

    We are now moving into the second tranche of quantitative easing.

    Quantitative easing is simply printing USA dollars.

    And the USA can print dollars that are accepted anywhere in the world because the USA owns, controls and prints the Reserve Currency of the world.

    However printing dollars is waging trade war. And of course other countries will retaliate. But in the whole history of trade wars, no one, absolutely no one, has ever won a trade war.

  2. #2
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    A trade war is like a competition to who can commit suicide the fastest

  3. #3
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    Quote Originally Posted by Tantive View Post
    A trade war is like a competition to who can commit suicide the fastest
    Yeah, and just as important is what are the investors doing with all this 'free' US money?

    They are not investing it in the US because the rate of return is too low. No, they are investing in foreign economies where the rate of return is much higher.

    Essentially, Americans are using this 'free' money to buy resources overseas. And as I write vast billions are pouring into resources in Oz.

  4. #4
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    Indeed so while higher interest rates is the solution to solve the problem, both for savings and capital investments, it is also a problem, because of the massive amount of debt currently held. They're not willing to take the pain for restructuring.

  5. #5
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    Quote Originally Posted by Tantive View Post
    Indeed so while higher interest rates is the solution to solve the problem, both for savings and capital investments, it is also a problem, because of the massive amount of debt currently held. They're not willing to take the pain for restructuring.
    Yes, it was savings and investment that made America great, but debt and consumerism is giving America a hangover.

    However America will reinvent herself and return to the protestant work ethic and capital investment.

    But if you don't, I will come over there and give you a damn good talking to.

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