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Bear Goggles

Qe Central Bankers Deserve A Medal For Saving Society

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QE is the carpet which bad things are swept under.

Thats why things might appear better from a bean counters point of view, he has no idea what is under the carpet, but he can see that those without a carpet are apparently in a much worse state.

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Looks like another veiled 'Europe's f*cked' piece to me.

How many ways are there to write the same story over and over?

AEP must be going slowly insane, he only has 2 modes now. Pro Anglo QE and anti EU imminent collapse unless they QE.

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And it isn't because people 'repaired their balance sheets' by 'repudiating debt' and paying them back.

It is because they defaulted and banks reduced new lending.

Oh No Its Not!

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and which organisations created the need to "save society".

AEP's claim is another rewriting of history. It's a reset - but only in that he's moved the time the problem started forward and to about 2007.

AEP's reset is pretty lousy as well as uninspiring.

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Good piece.

QE clearly reduced unemployment.

Austerity clearly a failure. Simple as that.

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Good piece.

QE clearly reduced unemployment.

Austerity clearly a failure. Simple as that.

My steak is now fatty mince

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AEP's economics 2014:


On cue, federal debt is now falling as well. The deficit is down to 2.8pc of GDP, low enough to erode the debt ratio in a growing economy through the magic of the denominator effect.

"The magic of the denominator effect".

That "magic" is that the increase in the debt is so huge and interest rates are so low so that dividing the numerator (the deficit which has been made small by low interest rates) by the denominator (the huge and exponentially increasing debt) that it results in a small number (2.8%).

That's the magic of the denominator effect.

More like the duffness of the denominator effect.

Edited by billybong

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AEP's economics 2014:

"The magic of the denominator effect".

That "magic" is that the increase in the debt is so huge and interest rates are so low so that dividing the numerator (the deficit which has been made small by low interest rates) by the denominator (the huge and exponentially increasing debt) that it results in a small number (2.8%).

That's the magic of the denominator effect.

More like the duffness of the denominator effect.

It is MMT BS.

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Good piece.

QE clearly reduced unemployment.

Austerity clearly a failure. Simple as that.

http://www.shadowstats.com/alternate_data/unemployment-charts

Depends on how reliable the official data is, if people are finding employment to come off the figures then you might be able to claim success, if however people are simply not looking for work then the fall in US unemployment figures is misleading. However you then have the issue of the level of wages being paid for these new jobs.

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Good piece.

QE clearly reduced unemployment.

Austerity clearly a failure. Simple as that.

I see now why you keep harping on about the "wages must rise".

your logic is sound...except the wages arent rising in line with the QE and asset prices as promised under MMT/semiKeynes theory.

all that has happened is the banks have somewhere to offload the crap they issued in the last 1 years...and the cash they recieve?..they buy assets that are real/stocks in real firms, and issue more "instruments".

How you expect this to lead to rising wages is a bit of a leap of faith in the nature of business.

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Europe, the UK, it makes no difference.

The eurozone chose less (printed) stimulus, we chose more.

The eurozone thus incurred less inflation, but less employment.

The end GDP result is pretty much the same.

Of course, carry on making peoples wages worthless, as gidiot has done these past 5 years, eventually you end up like the soviet union at the end of the 80s. Everyone had a job, but the money didnt buy anything much. Queuing all day to get a loaf of bread, waiting years to take delivery of a car.

The irony is, we're supposed to be the right wing tory country, and we've chosen the keynesian avenue. 'socialist' europe has chosen the more fiscally conservative avenue. Not that you'd know it from media coverage.

Edited by Executive Sadman

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@BlooLoo

Precisely. Wages aren't going to rise anytime soon, not when they can relocate or outsource their manufacturing to China, or to a team of automated machines here, or to an ever-increasing pool of immigrants, or offer a job to any of the 500 million members of the EU who might wish to apply.

Edited by FallingAwake

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Whats the point of having a job if it wont buy something as basic as a house?

We have loads of land, there are millions of unemployed builders across the EU and there's a shortage of houses.

It's not difficult is it.

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We have loads of land, there are millions of unemployed builders across the EU and there's a shortage of houses.

It's not difficult is it.

The VI land-holders won't sell it for less than it is worth (fortunues)- thanks to QE/0.5%HTB etc.

You should know all about that.

I know several friends/acquaintances who have put houses up for sale over the last few months in the £500-800k region, who are expecting to have to wait 12 months + to sell. In one case they had an offer £50k under asking (which was I think £50k less than the agents recommended price anyway) and they rejected it. Another who put it on at what seemed a peak price to me, only to drop it by about £80k a few weeks later after little response and who has now decided not to sell (doesn't need to).

I was not prepared to see Mervyn King when opening that article. The pain needed taking... younger savers took the pain by trying to save against hyperinflating house prices 2002+. Nothing has changed... just this morning presenter on radio looking at reports, seeking 'house price growth' in regions. Welsh EA said hoping to see it, but softening in London, and just the same in his area for the moment. If anything had changed the VI would want lower house prices.

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