enrieb Posted March 5, 2009 Share Posted March 5, 2009 I cannot believe how pathetic this BBC video at describing how quantitative easing is supposed to work. It features a reporter with a presenting style usually reserved for pre-school children television. He is dressed as a mechanic, leaning over the the engine of a car, as if somehow QE and economics is related to how a car engine works. I am all for simplifying complex economic ideas by using analogies to get across the concept, but I just don't see the connection. His manner of communication, seems to portray QE as a common economic tool that is used to fix economic problems, like a pump being used to inflate a deflated tyre, and that those who use such tools know precisely what they are doing. There are no ill consequences and no moral hazards to consider "its like filling up a petrol tank with imaginary petrol" Yes he actually said that. http://news.bbc.co.uk/1/hi/programmes/the_...ics/7925669.stm Quote Link to comment Share on other sites More sharing options...
Timm Posted March 5, 2009 Share Posted March 5, 2009 It's more like pissing in the tank. There is more liquid, but the same embedded energy. Do it too much and the engine will stall. Do it really to much and you'll break the engine. Quote Link to comment Share on other sites More sharing options...
A.steve Posted March 5, 2009 Share Posted March 5, 2009 Are you surprised? This is just an example of inept propaganda. The Treasury and BoE desperately want people to believe that QE will cause run-away inflation... because that will lead them to spend their savings... which, in turn, will support the economy. This acts against the emerging risk-adverse popular behaviour where asset prices are seen to be falling and are expected to continue to fall. QE will be inflationary if: 1. People fundamentally believe it will be and act accordingly. 2. The assets that are bought are bad assets where default is a foregone conclusion... landing the taxpayer with a significant loss. Quote Link to comment Share on other sites More sharing options...
Kootenai Brown Posted March 5, 2009 Share Posted March 5, 2009 (edited) ......... Did you notice this bozo was pouring his "imaginary fuel" all over the engine to "stimulate" it. He'll get it started alright. Cue giant fireball and natural selection. Edited March 5, 2009 by Burned Out Quote Link to comment Share on other sites More sharing options...
bogbrush Posted March 5, 2009 Share Posted March 5, 2009 It's more like pissing in the tank.There is more liquid, but the same embedded energy. Do it too much and the engine will stall. Do it really to much and you'll break the engine. +1 Spot on. I will be telling friends I thought of that. Quote Link to comment Share on other sites More sharing options...
PotNoodle Posted March 5, 2009 Share Posted March 5, 2009 "its like filling up a petrol tank with imaginary petrol" Yes he actually said that. This is so you can imagine you are going to work, to the job you no longer have. Then you can imagine you are coming home to the house you have been evicted from. Seems sensible to me. Quote Link to comment Share on other sites More sharing options...
salamander Posted March 5, 2009 Share Posted March 5, 2009 (edited) Why didn't they just show a clip of a printing press churning out vast quantities of crisp new twenties, interspersed with the occasional Weimar photo of notes in barrows/furnaces etc ? Can only assume that they are trying to confuse people so that they don't understand what is actually happening. Edit: Surplus word removed. Edited March 5, 2009 by narrowescape Quote Link to comment Share on other sites More sharing options...
SarahBell Posted March 5, 2009 Share Posted March 5, 2009 Buy wheelbarrow shares now Quote Link to comment Share on other sites More sharing options...
Nicholas Cage Posted March 5, 2009 Share Posted March 5, 2009 I probably wouldn't drive more, just to burn petrol. Especially when the price is unstable and I might lose my job, wage is not very good, taxes are so high. Quote Link to comment Share on other sites More sharing options...
Guest DissipatedYouthIsValuable Posted March 5, 2009 Share Posted March 5, 2009 Rule 96: You can explain anything with a car analogy. Quote Link to comment Share on other sites More sharing options...
bootfair Posted March 5, 2009 Share Posted March 5, 2009 Hopefully people will realise the fatal flaw with trying to get anywhere on "imaginary petrol". Lets hope in 6 months time they are not telling us how we can fill our stomachs on "imaginary food"... I cannot believe how pathetic this BBC video at describing how quantitative easing is supposed to work.It features a reporter with a presenting style usually reserved for pre-school children television. He is dressed as a mechanic, leaning over the the engine of a car, as if somehow QE and economics is related to how a car engine works. I am all for simplifying complex economic ideas by using analogies to get across the concept, but I just don't see the connection. His manner of communication, seems to portray QE as a common economic tool that is used to fix economic problems, like a pump being used to inflate a deflated tyre, and that those who use such tools know precisely what they are doing. There are no ill consequences and no moral hazards to consider "its like filling up a petrol tank with imaginary petrol" Yes he actually said that. http://news.bbc.co.uk/1/hi/programmes/the_...ics/7925669.stm Quote Link to comment Share on other sites More sharing options...
Y-QUERK Posted March 5, 2009 Share Posted March 5, 2009 What a dumb video. Quote Link to comment Share on other sites More sharing options...
tomandlu Posted March 5, 2009 Share Posted March 5, 2009 Rule 96: You can explain anything with a car analogy. Except cars. Quote Link to comment Share on other sites More sharing options...
Monkey Posted March 5, 2009 Share Posted March 5, 2009 if he wanted ot use car analogy or petrol he should have used the difference between 100ron and 95ron fuel ie it would only really work with a turbo charged car running higher than stock boost to get more BHP and torque we have been running on 100ron fuel for 10 years and the ECU has been mapped to suit, the boost has been raised by 50% and the car is running smooth and fast. then we start using 95ron with out de-tuning the engine, this causes detonation and a hole begins to appear in the piston, but as the pistons in locked away inside you cant see it, but you can feel it, you keep driving, heat uilds up in that piston which starts to burn the head gasket away, oil mixes with the water, and that mixes with the petrol, then the piston gives away, whist your driving at 100mph 200 miles from home. you Quote Link to comment Share on other sites More sharing options...
Sinking Feeling Posted March 5, 2009 Share Posted March 5, 2009 A 2009 version of this 1930s short film! http://www.youtube.com/watch?v=99Dzdc1H0wM Quote Link to comment Share on other sites More sharing options...
Chuffy Chuffnell Posted March 5, 2009 Share Posted March 5, 2009 (edited) A 2009 version of this 1930s short film!http://www.youtube.com/watch?v=99Dzdc1H0wM I spat my tea out at 4:25 Great footage from the 30s though - shows how nothing has changed. The people are thick and can be told anything. And if you tell them stuff in a dumbed down way they somehow give up trying to understand the issue further and give in to the supposedly more intelligent authorities. As for the BBC clip - I saw it this morning. Staggering. The dumbing down of Britain in action. Edited March 5, 2009 by Mr Deflation Quote Link to comment Share on other sites More sharing options...
InternationalRockSuperstar Posted March 5, 2009 Share Posted March 5, 2009 http://news.bbc.co.uk/1/hi/programmes/the_...ics/7925669.stm it's sh1t like this that makes me feel so not guilty for not paying the license fee! Quote Link to comment Share on other sites More sharing options...
InternationalRockSuperstar Posted March 5, 2009 Share Posted March 5, 2009 A 2009 version of this 1930s short film!http://www.youtube.com/watch?v=99Dzdc1H0wM directed by "Zion" LOL Quote Link to comment Share on other sites More sharing options...
piece of paper Posted March 5, 2009 Share Posted March 5, 2009 A 2009 version of this 1930s short film!http://www.youtube.com/watch?v=99Dzdc1H0wM Liked it a lot. If we do run a repeat here, I'm not sure how the retired residents 'down south' are going to take to the underemployed inner city residents descending on them in search of cotton pickin' jobs! p-o-p Quote Link to comment Share on other sites More sharing options...
rickybruce Posted March 5, 2009 Share Posted March 5, 2009 Liked it a lot. If we do run a repeat here, I'm not sure how the retired residents 'down south' are going to take to the underemployed inner city residents descending on them in search of cotton pickin' jobs!p-o-p Good old black Joe. Liked how he perved over Ophelia the farmers teenage daughter Quote Link to comment Share on other sites More sharing options...
InternationalRockSuperstar Posted March 5, 2009 Share Posted March 5, 2009 A 2009 version of this 1930s short film!http://www.youtube.com/watch?v=99Dzdc1H0wM jeeze did you see in that video: wheat at $0.43 a bushel! it's $517.00 now! I gues the "inflation plan" worked Quote Link to comment Share on other sites More sharing options...
okaycuckoo Posted March 5, 2009 Share Posted March 5, 2009 You're just one click away from your own personal QE: http://boardgames.about.com/od/monopolyfaq/f/print_money.htm (Hat tip to this blog - http://ourdailydebt.wordpress.com/ ) Quote Link to comment Share on other sites More sharing options...
PotNoodle Posted March 5, 2009 Share Posted March 5, 2009 Rule 96: You can explain anything with a car analogy. An analogy is like a car..... which is similar to another car. There you go. Quote Link to comment Share on other sites More sharing options...
PotNoodle Posted March 5, 2009 Share Posted March 5, 2009 jeeze did you see in that video: wheat at $0.43 a bushel! it's $517.00 now!I gues the "inflation plan" worked You're kidding. They still have bushels ? I seem to remember (vaguely - I did this not long after potty training) that there are a certain number of pecks in a bushel. Quote Link to comment Share on other sites More sharing options...
General Melchett Posted March 5, 2009 Share Posted March 5, 2009 'Quantative easing is a lot like making love to a beautiful woman....' (Swiss Tony moment over, for me anyhow) Quote Link to comment Share on other sites More sharing options...
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