Quote:
Originally Posted by graciegirl
I don't have a clue what you are talking about. This must be some political rhetoric that I haven't been exposed to.
What is Quantitative easing? It makes me guess that it is printing money with no backing or issuing bonds with no backing. Or borrowing money from oneself?
Could you two explain further what you are talking about?
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You pretty much nailed it on the head. It's like giving your teenager a credit card and tell them that the card has no limit but you want them to be responsible. National Debt has now passed 18 Trillion, (Bush Jr. 5.8 trillion in 8 years Obama 6.1 trillion 6 years.) Contingent Liabilities (Pensions, SS etc) are conservatively pegged at over 200 trillion or as I like to say 200,000 Billion.
Bernie Madoff, as long as he was getting fresh money, (his form of Quantitative Easing) was paying double digit interest rates and we all know how that ended. This is much the same. However you will never convince a Keynesian that this is bad. They will tell you look at the stock market. I used to have the risk of deflation risk pegged at about 5%. I now have it at 50%.
I believe that you can't spend more than you take in. But watch how many people are going to call me a doomsday nut for taking that position.
