Quantitative Easing, what's your view?

Discussion in 'Property Market Economics' started by spludgey, 9th Dec, 2018.

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  1. Waterboy

    Waterboy Well-Known Member

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    the thing with Australia is, it's not always in-sync with the world. otherwise we would've followed the other countries when they did their QE. no more mining boom to help us this time.
     
  2. radson

    radson Well-Known Member

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    Empire and Someguy like this.
  3. mues

    mues Well-Known Member

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    QE. Sounds good. Doesn’t work.
     
  4. Befuddled

    Befuddled Well-Known Member

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    One set of weak economic data does not warrant reaching for QE.

    I think it's bit of an overreaction... It'd be like getting a rash on an arm and choosing to amputate.
     
  5. spludgey

    spludgey Well-Known Member

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    Don't you mean "armputate"? ;)
    But given that they raised it, I'm guessing there's either a small chance or they're trying to settle people's nerves by showing that there's still a lot of cards to be played.
     
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  6. marmot

    marmot Well-Known Member

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    I thought most of the cards had already been dealt with interest rates droping down to 1.5% ,Still plenty of room for the AUD to fall a bit should we get more bad news .
     
  7. Kangabanga

    Kangabanga Well-Known Member

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    Depends on how trade wars progress this month. A lot of controversy and changing expectations at the moment.

    Also depends on what us fed does with regards to their rate rising.

    Lastly depends on how iron ore and coal prices go next half year. A lot of specualtion and big prive swings in that space
     
  8. Chomp

    Chomp Well-Known Member

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  9. Waterboy

    Waterboy Well-Known Member

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    evidence?
     
  10. marmot

    marmot Well-Known Member

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    It makes people feel better that the RBA had a "secret weapon" and are going to use it to bail us all out should things deteriorate further.
    Much of our problems seem to be caused by high debt levels and lack of wage growth with many consumers just not spending.
    The best the government can come up with is further eroding the tax base.
    Would I rather see good wage growth or an extra $1000 back every year at tax time , Id take wage growth any day as it puts a far much more money in my pockets and eats away at debt at a much faster rate.
    That what really drives an economy forward.
     
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  11. spludgey

    spludgey Well-Known Member

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    If this $1000 was tax revenue, then I doubt that it would have the desired effect, as you'd cut government spending significantly.
    However, if it was "free" money, it could potentially work.
     
  12. Archer

    Archer Well-Known Member

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    If countries could solve problems by printing money and not be bound by the debt they accumulate wouldn't they all do it? This has been tried and failed over and over again throughout history - Zimbabwe, Argentina etc etc In the end debt always matters and people and countries go broke the same way slowly, slowly then all of a sudden! The ones that haven't yet just haven't reached the all of a sudden.
     
  13. Waterboy

    Waterboy Well-Known Member

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    There's a difference between money printing by a Dictator and that of an independent central bank / inflation-targeting policies.

    Watch and learn.


     
  14. Archer

    Archer Well-Known Member

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    Is that a comedy skit?
     
  15. Waterboy

    Waterboy Well-Known Member

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    do you even really understand what actually QE is? or just extremely close minded?
     
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  16. Archer

    Archer Well-Known Member

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    I understand perfectly - it is what people want to believe when they need to believe it. If you can no longer balance budgets and spend what you earn then you need to believe something else is possible. Many people have argued why MMT is a crock I wont repeat that here. I believe you can't create wealth from the stoke of pen (or computer) it is generated from the toil of people who meet other peolpe's need. That is how capitalism works, but I have no wish to argue with you the world would be a magnificent place if MMT worked. Countries could create untold wealth and we would all live happily ever after.
     
  17. marmot

    marmot Well-Known Member

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    I wonder how many Wall St bankers actually understood what was happing in the lead up to the GFC.
    They were all trying to flog of a toxic product and to busy making money to understand the full extent of the damage they were doing.
    For all the hype about QE why is the U.S still unable to unwind it.
    And they deployed it during a period when markets were looking like collapsing.
    We want to use it just because many households havent seen good wage growth in years which ultimately has forced many to stop spending which then flows back into the labour market.
     
    Last edited: 23rd Jun, 2019
  18. Waterboy

    Waterboy Well-Known Member

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    ^obvoiusly don't understand the concept
     
  19. Herbert

    Herbert Well-Known Member

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    Perfectly put, QE = cheating basically......... short term political dodge, kicking the can on for later generations to clear up.
     
  20. Waterboy

    Waterboy Well-Known Member

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    what cheating? we've all been blinded by the brainwash that fake "deficit" is bad.

    please do yourself a favour and watch the video with an open mind, without any bias or pre-concieved notions that were spoonfed to you by generations of politicians from both sides.

    if you don't understand the concept of Modern Monetary Theory, please don't even bother arguing.

    we have to completely change our idea of government budgets and deficits. governments are not households or businesses who have to "balance" the budget.


     
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