Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Synonymous Terms for Quantitative Easing

Interest-Rates / Quantitative Easing Jan 11, 2011 - 05:37 PM GMT

By: Richard_Daughty

Interest-Rates

Best Financial Markets Analysis ArticleI was having a leisurely breakfast with the family when I read where Philipp Bagus, writing at Mises Daily newsletter, quotes James Bullard, president of the St. Louis Federal Reserve Bank, as saying, "it's important to defend inflation from the low side as we would on the high side."


I thought to myself, "Defend inflation? Inflation needs to be defended from being too low? Arrgghhh!"

As indicated by the surprising use of the pirate-sounding phrase, "Arrgghh!" you can tell that this sublime idiocy drives me Up The Freaking Wall (UTFW), as soon indicated by a few almost-obligatory and loud Mogambo Screams Of Outrage (MSOO) emanating from my lips, which, unfortunately, upset my stupid family, and they all started complaining about the noise and the way that food was flying out of my mouth and getting all over everything.

Amid rude comments like, "Calm down, you idiot!" and, "Ewww!" I just explained, "Screw you!" got in my car and went to work.

As I was driving along, thinking about this idiot Bullard, and thinking about how the Federal Reserve has become a malignant organization that is going to destroy us with catastrophic inflation as a result of their terrifying creation of So Freaking Much Money (SFMM) so that the Obama administration can borrow the money and spend it, and thinking about how I can possibly save my job, which is hanging by a thread, when - suddenly! - I had a Brilliant Mogambo Idea (BMI)!

With mounting excitement, I stepped on the accelerator, horn blaring, swerved into the parking lot and, to save time, took the Handicapped Parking space.

Some moron walking by shouted out to me, "Hey! You can't park there!" to which I replied, "I'm not normal! Ask anybody who knows me, you moron!" and stomped off in a rush.

Bursting breathlessly into my boss's office, I excitedly said, "Thanks to the genius of James Bullard of the Federal Reserve, I now know that we have got to defend incompetence on the upside as well as the downside! Too much incompetence is as bad, or maybe worse, as too much competence! So get off my butt about what a lousy employee I am!"

Well, as soon as I said that last sentence, I knew that I had made a mistake, mostly by observing the way my boss kind of stared at me for about ten seconds, slowly clenching and unclenching her fists.

I explained to her how Mr. Bagus explained that, "Money printing cannot make society richer; it does not produce more real goods," although creating more and more money "has a redistributive effect in favor of those who receive the new money first and to the detriment of those who receive it last."

"Eureka!" I exclaimed. "This is exactly what we want! You and I would gain now, at the expense of some other jerks down the line, which defends my incompetence perfectly and makes us look good!"

That's when she said, in cool, measured tones through gritted teeth, "I read that article, too. And he goes on to say, 'The money injection in a specific part of the economy distorts production. Thus, QE does not bring ease to the economy. To the contrary, QE makes the recession longer and harsher.' So do you want things to get worse for us, longer and harsher, by rewarding your staggering incompetence instead of throwing you bodily out of the building and taunting you all the way to your stupid car?"

It was fascinating to see her struggling to control her emotions and her obvious desire to punch my brains out, but she doesn't because, the way I figure it, she can see that I am four inches taller than her, thirty pounds heavier than her, and have a much longer reach than her, so that before she could even reach me, I could - pop, pop, pop! - put a few good left jabs where they would do the most good, in a self-defense kind of way, spinning her around so that I could put in a few roundhouse hooks to pound on her kidneys awhile before I go for the knockout, all while yelling, "Usurper! This job should have been mine! And should be mine because at least I am smart enough to buy gold and silver when the foul Federal Reserve is creating so much excess money that catastrophic inflation in prices must, because it always does, happen, making me rich enough to quit this lousy job, while you and your stupid 401(k) is in common stocks that have not done a thing in a freaking decade, even in nominal terms, and in inflation-adjusted terms you are losing your Big Fat Butt (BFB), and whose future is equally dim!"

This is when I decided to lighten the mood, which was obviously becoming strained, by asking, "Did you see where he went on to say that the Fed's ruinous program of Quantitative Easing 2 would be more descriptive if it was called 'Quantitative Straining'? Hahaha! That's funny!"

Her expression didn't change. So I said, using some bathroom humor, "Straining? Like on the toilet? Like when you are constipated?" Not even a smile.

Heedlessly, I went on, "Or how about his 'Quantitative Destruction II'? Or 'Crisis Prolongation III'? Hahaha! Good stuff, huh?"

There was still no change in her expression, so I went recklessly and desperately on, "Currency Debasement I? Bank Bailout I? Government Bailout II?"

By this time I was racking my brain, frantic for something else to say. Then I remembered his "Consumer Impoverishment" which is the most perfect descriptor of them all! Hahaha!

But I hesitated, suddenly seeing that she could use this "impoverishment" thing against me when discussing my poor work performance, and, suddenly out of ideas, I decided to leave the area.

I pretended to get an important phone call on my cell phone, asking me for important, important data to close a big, big sale, the figures for which were back at my office, where I had to go right now to retrieve them, which was difficult in that I did not have my cell phone with me and had to pretend that my wallet was a damned phone. "Brrring brrring!" I said.

Alas, I don't think she bought it. But since she is too stupid to buy gold and silver when the filthy Federal Reserve is creating so much excess money, when 4,500 years of history proves that it will cause terrible inflation in prices, I don't care!

Soon, because of the rise in the prices of gold and silver, I will be able to buy this whole company, then we'll see who throws who bodily out of the building! Hahaha! Revenge will be sweet! Hahahaha!

And the best part is that not only are gigantic profits from buying gold and silver guaranteed by 4,500 years of history, but that it is so easy! Whee!

Richard Daughty (Mogambo Guru) is general partner and COO for Smith Consultant Group, serving the financial and medical communities, and the writer/publisher of the Mogambo Guru economic newsletter, an avocational exercise to better heap disrespect on those who desperately deserve it. The Mogambo Guru is quoted frequently in Barron’s, The Daily Reckoning, and other fine publications.

Copyright © 2011 Daily Reckoning

© 2010 Copyright The Daily Reckoning - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in