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View Diary: Why what Ben Bernanke said yesterday should make you angry (102 comments)

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  •  QE and printing money are sufficiently similar... (12+ / 0-)

    ...that I don't really see how the latter is an employment engine while the former isn't.  If it didn't work (and, like the stimulus, it's kind of hard to tell because you don't know what would have happened otherwise), it's because there are deeper issues at work in our employment-and-compensation crisis.

    Dear conservatives: If instead of "marriage equality" we call it "voluntary government registration of committed homosexuals," are you on board?

    by Rich in PA on Fri Jun 08, 2012 at 05:25:59 AM PDT

    [ Parent ]

    •  The Fed can't perform miracles (0+ / 0-)

      How can you affect job growth by printing money?  All it does is create inflation -- and BTW if you think inflation is really only 2% you are nuts.  See Shadowstats.com for the real numbers. Since the US dollar is the world's reserve currency we've managed to export the inflation, mostly.  Many of the "Arab Spring" events were a result of the sudden rise in food prices in the developing world being the straw that broke the camel's back. This was largely thanks to the second round of QE -- hot money rushed into commodities, driving up prices of everything from oil, to gold, to wheat. People in Egypt could no longer afford to feed their families.                          

      The Fed simply has to wait until things get much worse (think stock market tanking again) so that deflation starts to hurt the elite, then there will be a "consensus" for more money printing.  

      As far as jobs, the ball is in the politicians court, including Obama.  They could create much-needed infrastructure projects which could create many thousands of jobs, then print the money to pay for them.  There would be inflation but at least that way we'd all get something real out of it.  Former QE, "Operation Twist", etc have only benefited big banks.  If you think that's gonna happen in Obama's next term, dream on.

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