Cynical I know but nothing lost in translation

By Peter Boockvar - May 25th, 2010, 1:15PM

I’m sorry if this sounds too cynical. I’m actually a very happy person. Fed Pres Bullard in the Q&A of today’s speech said their quantitative easing program has been “very successful,” that they will remove it in a “reasonable time frame” and the Fed could use the quantitative easing tool again in the future. He also said deflation is not a risk right now as higher inflation is more likely than deflation (I’m quoting Bloomberg) Translation: money printing works to temporarily fix and paper over a financial crisis as we got a huge rise in asset prices, we don’t want to give it up so soon and if things turn south again, we’ll knock down more trees and ramp up the printing press again. Also, printing money will eventually lead to inflation and the more disinflation/deflation we see in the short term, the more we will print.

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Category: MacroNotes.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

2 Responses to “Cynical I know but nothing lost in translation”

patient renter Says:
May 25th, 2010 at 4:27 pm
Saying the QE has been successful so shortly after implementing it is like saying that all is clear 1 second after lighting a 10 second dynamite fuse.
franklin411 Says:
May 25th, 2010 at 10:24 pm
“We shall answer their demands for a gold standard by saying to them, you shall not press down upon the brow of labor this crown of thorns. You shall not crucify mankind upon a cross of gold.”

William Jennings Bryan