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khayos 09-13-2012 02:19 PM

Stagflation - QE3 and holy cow we're back in the 70s
 
So Bernanke has announced QE3 to keep rates low until mid-2015. Is there now a compelling reason for business to inject capital and spurn growth or does it still fear Obamacare?

JackBauer 09-13-2012 02:23 PM

Re: Stagflation - QE3 and holy cow we're back in the 70s
 
Do you even know what stagflation is?

IcyPatriot 09-13-2012 02:24 PM

Re: Stagflation - QE3 and holy cow we're back in the 70s
 
Quote:

Originally Posted by JackBauer (Post 3144888)
Do you even know what stagflation is?


Stagflation is more dangerous than inflation ... that's for sure.

IllegalContact 09-13-2012 02:24 PM

Re: Stagflation - QE3 and holy cow we're back in the 70s
 
cheap money

IllegalContact 09-13-2012 02:28 PM

Re: Stagflation - QE3 and holy cow we're back in the 70s
 
Quote:

Originally Posted by IcyPatriot (Post 3144891)
Stagflation is more dangerous than inflation ... that's for sure.

inflation along wiht economic stagnation.

mostly driven by the cost of gas back then.

khayos 09-13-2012 02:34 PM

Re: Stagflation - QE3 and holy cow we're back in the 70s
 
Quote:

Originally Posted by IcyPatriot (Post 3144891)
Stagflation is more dangerous than inflation ... that's for sure.

Inflation goes up... just see what QE3 does; already projected that oil will go up for sure.

Economic growth slows down... we're already at the precipice of another recession as we approach the fiscal cliff.

Unemployment remains high... 8% and no projection that it goes down.

JackBauer 09-13-2012 02:36 PM

Re: Stagflation - QE3 and holy cow we're back in the 70s
 
Quote:

Originally Posted by khayos (Post 3144900)
Inflation goes up... just see what QE3 does; already projected that oil will go up for sure.

Economic growth slows down... we're already at the precipice of another recession as we approach the fiscal cliff.

Unemployment remains high... 8% and no projection that it goes down.

This is pretty much the exact opposite of what is projected to occur. I think you're conflating what you really want to see happen with what is actually likely to happen.

khayos 09-13-2012 02:37 PM

Re: Stagflation - QE3 and holy cow we're back in the 70s
 
Quote:

Originally Posted by JackBauer (Post 3144903)
This is pretty much the exact opposite of what is projected to occur. I think you're conflating what you really want to see happen with what is actually likely to happen.

Really? Where do you see it projected otherwise?

JackBauer 09-13-2012 02:39 PM

Re: Stagflation - QE3 and holy cow we're back in the 70s
 
Quote:

Originally Posted by khayos (Post 3144907)
Really? Where do you see it projected otherwise?

The Federal Reserve?

patsfan13 09-13-2012 02:43 PM

Re: Stagflation - QE3 and holy cow we're back in the 70s
 
1 Attachment(s)
Well Bernanke's done, he is out of options as explained here, he is hoping to drag BO across the finish line:

The One Big Problem With QE To Infinity | ZeroHedge

Quote:

There is one big problem with the Fed's announcement of Open-Ended QE moments ago: it effectively removes all future suspense from FOMC announcements. Why? Because the Fed has as of this moment exposed its cards for all to see from here until the moment it has to start tightening the money supply (which may or may not happen; frankly we don't think the Fed tightens until hyperinflation sets in at which point what the Fed does is meaningless). It means easing is now effectively priced into infinity. Now rewind back to that one certain paper by the New York Fed, which laid it out clear for all to see, that if it wasn't for the expectation of easing in the 24 hour period ahead of the FOMC meeting, the market would be 50% or lower than where it is now, and would have been effectively in negative territory in the aftermath of the Lehman collapse. What Bernanke did is take away this key drive to stock upside over the past 18 years, because going forward there is no surprise factor to any and all future FOMC decisions, as easing the default assumption.

We all know how messed up the Euro has been with rumors of collapse and all, well here the the chart for the EUR/USD and as you can see to all the chaos and disaster there the dollar for better or worse is about where it was at the beginning of the year vs the EU sorry for the low res, this chart covers from 12/29/2011 through today:


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