The Bureau of Labor estimates the CPI has an inflation rate of around 1.5 to 2%, but my own experience suggests its substantially higher. So the QE dollars might just be inflating prices. Employers and producers aren’t responding, and that’s likely due to the impending ACA implementation. No one knows what the impact of that will be so everyone is hunkering down.
Dave
It’s true it would be better policy to just change the target. As it stands now, they’re spending trillions to achieve effects that could be had with much less of a short-term effort. Still standing on the brakes while pumping the gas…
Neil
There’s no magic money machine that can fix this. The answers are fiscal and regulatory, and that ain’t gonna happen in the next three years.
captain* arizona
the market speaks thru super commputers run by very large sophisticated traders. And this is what they say give us your money suckers! Put your money in etf like qld and beat 99.9% of every one on wallstreet with 8% stop loss and and get back when it goes above 50 day and let them try and beat you.
Comments
5 responses to “The Markets Are Speaking”
$85 billion a month, to what, prop up the banks and Wall Street? Is the money going into businesses that will produce something, or is most of it simply funding more government debt?
http://www.nationalreview.com/exchequer/247825/70-percent-myth-consumer-economy
A trillion dollars a year. Over 6% of the US GDP.
And yet, GDP growth is only 2% per year.
The Bureau of Labor estimates the CPI has an inflation rate of around 1.5 to 2%, but my own experience suggests its substantially higher. So the QE dollars might just be inflating prices. Employers and producers aren’t responding, and that’s likely due to the impending ACA implementation. No one knows what the impact of that will be so everyone is hunkering down.
It’s true it would be better policy to just change the target. As it stands now, they’re spending trillions to achieve effects that could be had with much less of a short-term effort. Still standing on the brakes while pumping the gas…
There’s no magic money machine that can fix this. The answers are fiscal and regulatory, and that ain’t gonna happen in the next three years.
the market speaks thru super commputers run by very large sophisticated traders. And this is what they say give us your money suckers! Put your money in etf like qld and beat 99.9% of every one on wallstreet with 8% stop loss and and get back when it goes above 50 day and let them try and beat you.