will there be a QE 3 ?

Nope. But I'm sure that the von Mises dopes have told you that it's untrue, so buy gold from Glrenn Beck.

Have you finally learned anything about real economics since i last pounded your assertions into the ground by showing them to be the fallacies they are? Or will they rise like all the zombie-lies of the Austrian School's innumerable fallacies?

 

So Greece is like an Austrian (Austerian?) School convention?

My hyperbole aside, the Greek issue will affect the U.S. But not to some sort of effect that it will seriously harm our nations' ability to go about its own job of governing. And if the IMF really and truly wants to see that money back, they tell Greece to cut it's military spending dramatically while increasing it's domestic spending, to help rebuild the economy. Anyone versed in reality and the economics of reality, knows that.

 

Buy silver.

 

These are both arguments in support of QE, if it protects the value of real estate and company investments then why argue against it?

If the rich are keeping the value of their wealth then that is a good thing for the economy and the poor as it trickles down right?

 

the US is buying back its own debt...to me they are admitting they cannot pay anymore.

And assets are earning more then debts you say? Thats why 40 cents of every dollar spent has to be borrowed right?

 

by pegging their currency to the dollar they are effectively importing america's inflation. And this crap about no inflation? If you measure inflation using the basket of goods used in 1981 you will get an inflation rate of 9%....many newsletters are still using the old way and thats the rate they get...but you wont hear this on the propaganda filled networks in your country!

 

also, several american banks have exposure to greek debt and also to ireland's debt through their foreign operations!

 

I still dont see the need for this QE thingy

 

I am not really worried about Ireland so much. Greece is a bigger deal.

Irish hold 50% of all Irish Governments debt or basically €33 billion. Rest of the world owns €30.5 billion. Total Foreign bank holdings in Irish bonds is less 15% of that €30.5 billion.

Greece on the other hand has 30% of all their debt held by Foreign Banks.

US is even worse.. when we include intergovernmental debt. 47% is owned by Foreign Banks or individual investors. That puts us on part with the likes of Ireland and a Greece. But don't pay attention that as it looks really bad and it put Keynesian economics in a position of explaining how do we borrow more and still pay for it.

When we exclude intergovernmental debt it's more like 70% owned by Foreign Banks and individuals.

 

You can think that, even if it isn't true.

That's not what I said.

 

CPI and even the newer Billion Prices Index aren't showing inflation to be much at all. The Austrians saying inflation is around the corner and the sky is falling are funny little creatures, but not trained in Economics to see whaat is happening, as opposed to what they say should be happening because their idealogy says it should happen.

 

So really, you're saying that if those banks lose their asses we should socialize their losses?

 

Keynesian economics says how to pay for it. If you're going to criticize the only proven successful economic philosophy of the past 75 years, you should at least learn something about it before you make absurd claims.

I should be honored that you blame me so much for von Mises and the rest of the Austrians are shown to be deluded and unable to process reality in life and economics. But I wasn't the one who did that, just so you know. That was a combination of Austrians getting so much obviously wrong and the real economists doing the real work in studying the outcomes of political and economic policies and their effects on the economy. How is Greece doing under their new austerity measures, BTW? Still having their economy contract? I guess the austrians will call it a success when the Greeks see unemployment doubled and debt goes to over 150% of GDP.

 

Milton Friedman would see the need for QE, until the situation improved...

http://delong.typepad.com/sdj/2011/06/delong-smackdown-watch-ghost-of-milton-friedman-edition.html

 

inflation could hit 20% and Bernacke and all the propaganda filled networks would still say that inflation is not a problem and the dummies would believe it!

 

nope....in fact I think all those banks that become insolvent should be allowed to fail. But my point is that if greece defaults, it could start a chain reaction similar to when Lehman failed in 2008!

 

anybody that thinks that a nation that has reached 100% debt to GDP and climbing with no political will to fix the problem needs to have their head examined. The US is getting away with it only because it has the reserve currency...something it has no business in having as it is obviously abusing it!

 

then go ahead and follow Wiemar Germany's lead

 

what happened in germany?

 

Tell me when it gets to 4%, and I'll laugh if anyone calls that hyperinflation...

 

Germany will have to either bite the bullet and pay down their debt, or let the euro fail. As long as the Greeks are forced into contractionary spending freezes and cuts to its domestic spending, they'll continue to be unable to raise revenues enough to pay down that debt.

 

First, reserve currency, schmeserve schmurrency. Who cares? It doesn't insulate anything. Too much emphasis on whether or not we have a reserve currency, even though it doesn't affect much. The right's love of supply-siders and Austrians means the debts will never be paid down as long as they have a say.

Second, we're not even close to 100% debt:GDP ratios. And the Democratic House Progressive Caucus is the only ones in congress looking to lower deficits and debt by expanding the economy.

http://cpc.grijalva.house.gov/index.cfm?sectionid=70

 

Can you tell me the difference between inflation being under 4% compared to inflation going up to 3.25 × 10(to the 6th power)?

 

Shanty, if you aren't careful you are going to get sand in your mouth and eyes before you decide to pull your head out.

 

Heh. The Chicken Littles out there just know that high inflation is coming, even though there's no way for them to explain how it might come about, under the situation of a liquidity trap.

Talk about hyperinflation, when borrowing rates for the U.s. are down to historic levels and inflation is pretty (*)(*)(*)(*) low, are silly. It's to be laughed at, and not taken seriously.