QE3 – Why it’s a bad idea
June 12, 2011
After reading a Dallas Morning News article on Quantitative Easing 2 from November, 2010, the fact they are talking about QE3 makes me angry. The old saying is, “Fool me once, shame on you. Fool me twice, shame on me.” A newer version should be, “Fool me three times, what do you think I am, frigging stupid?” Of course that could be said of Californians by electing Jerry Brown for a third term as governor, but that’s not the topic of today’s post.
Fortunately for us, fhe Fed has announced as late as June 10, 2011, that it will not be implementing QE3, much to the shock of Wall Street. We can all breathe a sigh of relief… for now.
Ben Bernanke, a Bush appointee as Federal Reserve Chairman, has practically decimated our economy with a policy which he continues to promote. Since 2006 our country’s loose monetary policy has been guided by his hand, and what have we gotten for it? High unemployment, a devalued dollar and a stagnant economy. We can blame Obama all we want, and we should for many things that are going wrong in our country, but Bernanke has a hand in this thanks to his poor decisions as Fed Chairman.
As the article in Dallas Morning News points out, QE2 sounds like an ocean liner, but should actually be called the Titanic… The bad news? We all have seats on it. Are we all going down? Time will tell. But here are a few facts.
QE1 and QE2 have done nothing to jump start the economy. Like the Heritage Foundation pointed out (much like my bathtub analogy) taking water from one end of a swimming pool and dumping it into the other end may raise the water level in certain areas for a certain time as it ripples across the surface, but eventually the water level in the pool has not increased. So it is with quantitative easing.
The Fed prints money which we are essentially borrowing from ourselves and using to buy up bonds which have already been issued (monetizing debt) using this newly printed money. Supposedly the bond holders then have liquid capital to pump back into the economy. But since wealth is not being created, the increased money supply only waters down what is already in the economy. If you guess that this makes things cost more, you would be right. Inflation has been with us for a few years, but because energy and food are not entered into the equation, we have gotten doctored economic numbers.
So if QE1 had worked, wouldn’t our economy be humming? Okay, the argument is that our economy is so big it takes time to turn the ship around. So we got QE2 after QE1. How is that working for you? So well that now they are talking about QE3? Watch out for that iceberg!
FedUpEditor
New pipeline and domestic drilling are key to US liquid fuel supplies
June 11, 2011
API economists have examined U.S. government data and a few studies, and they’ve discovered that with the pipeline and expanded access to domestic energy supplies the United States and Canada could provide 92% of America’s liquid fuel needs by 2030 – decreasing the nation’s projected dependency on the rest of the world by 22%.
API has produced a new video illustrating those numbers. Please feel free to use it. Additionally, more information is available on the access page at EnergyTomorrow.org, where API has posted the benefits of opening up areas that are currently off-limits to exploration and production.
The State Department, by the way, has issued a statement saying that it will make a decision on the Keystone pipeline by the end of this year.
API economists have examined U.S. government data and a few studies, and they’ve discovered that with the pipeline and expanded access to domestic energy supplies the United States and Canada could provide 92% of America’s liquid fuel needs by 2030 – decreasing the nation’s projected dependency on the rest of the world by 22%.
API has produced a new video illustrating those numbers. Please feel free to use it. Additionally, more information is available on the access page at EnergyTomorrow.org, where API has posted the benefits of opening up areas that are currently off-limits to exploration and production.
The State Department, by the way, has issued a statement saying that it will make a decision on the Keystone pipeline by the end of this year.
