Testing The Financial Apologists

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QE refers to Quantatative Easing, which is a euphimism for monetizing the debt. Barrons explains what the Fed does and why it is risky.

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More importantly Quantitative Easing is an alternative to reducing interest rates when there’s no room to cut them.In your last post you assert that the trouble is that there’s no room to increase interest rates.These are contradictory. The Fed can’t desperately need to reduce interest rates AND increase them.You wanted to know why Percy says that you are delusional! There’s a reason right there.It looks to me as if you have your doom scenario in mind and “see” it everywhere - even in sources that contradict it. That sounds pretty delusional to me.

Phat, I hope you realise that there is a distinction between your claims to have listened to qualified people and those people supporting your assertions.So far we’ve seen that they typically disagree.And that’s the problem.

In my case I see you claim that gold should be rapidly increasing in price, you say it isn’t because the banks are holding the prices down - but the respectable sources you cite suggest that the banks are keeping the price rising.So it looks to me very much as if the idea that the price of gold should be steeply rising is “snake oil” you’ve been sold, and that the bank’s involvement is just an excuse for why it hasn’t happened. You certainly did not get it from the sources you cited.

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The current rate of inflation is higher than the expected values of maturing bonds.
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There is no way to stop inflation in todays world. It will slowly chew all of our incomes up.

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Indeed, after a long period of low inflation the after-effects of COVID plus the effects of the Russian invasion of Ukraine have seen a rise.But obviously there are ways to keep inflation down. That’s why we’ve had low inflation for the last few decades. Remember the ‘70s? The current inflation rate in the US is not bad by that standard.

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The #2 person at the Federal Reserve is a Modern Monetary Theorist, which, as you all know, I disagree with (that philosophy)

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Really? Who do you think is #2 at the Federal Reserve and what evidence is there that they follow Modern Monetary Theory?

Perhaps you’d like to answer Message 200 to show that you’re not completely clueless?

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Krugman is a modern monetary theorist, which is not the final word.

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No, he isn’t. Really, why do you try to post this label on people when you have no idea of their views?