/biz/ - Business & Finance

QE is not inflationary and this thread is garbage.
Take a look at any period where we actually had higher inflaiton such as any period before 2008. Nobody did QE except for Japan.

>>50128778
which, as Japan shows, hyper inflates every asset imaginable and makes owning equity for most people impossible without 48 hour work days. And westerners are not Asians, we are rather going to send our parents to the forest, or export them into cheap third world nation nursing homes
Though there might be a third option, why not crank the volatility up to the max, brutal busts and golden booms

option 1 will happen, but you overdramatise the crashing bit. there will be a recession, bubbles will burst, people will be mad but that's it it's happened before.

>>50128861
I doubt the first option is even on the table among decision makers, currently its more an attempt to scare the markets into a correction, and it worked, not really well.
>it happened before
it never happened before that the old inactive population with promises of dying in a golden coffin is the biggest part of the electorate

>>50129019
>it never happened before that the old inactive population with promises of dying in a golden coffin is the biggest part of the electorate
people lost a lot in 401ks, savings etc after 2008. in europe entire generations have lost decades of wealth at both ends of the age spectrum. but what's the alternative, gommie revolution? get china in to run the show?

>>50129057
the foul compromise, shorter cycles, extremer volatility, make it the new normal. The real solution no matter the political decisions, let it wither away, pick b), they cant make Genx and Millenials work until 85, while paying into the public pyramid scheme and getting nothing, the system either collapses or it becomes rational at some point to hunt other humans for protein

>>50128727
it's no secret that this recession is the result of mishandling 2008. there are problems at the institutional level that kick the can down the road. and we basically have some of the best economists in the world trying to justify policy decisions by playing around with mega math rather than the other way around. The cart has been in front of the horse here for a long time. hell, it was at our doorstep even before covid. Covid was at best a stroke of luck for the world governments and at worst a planned scapegoat.

So much of the world has been hyper financialized that at this point it's become too big to fail without a major interruption of goods and services to people and orgs.

Not sure it can be fixed. The squirrely math makes everything we know possible. it's why beef is still cheap and home loans are still affordable.

>>50128727
>its killing the old

>>50128727
I got shitfaced drunk last night and argued about this with my brother in law.
JPow is in a tough spot, way tougher than Volcker in the 70s.

I tend towards doomerism but I believe if JPow raises rates and shuts off the economic engine then it might not restart. I believe raising rates will not only kill boomer portfolios, it will also hand the keys to global dominance to China on a global scale. China is an industrial economy still, it still has extremely productive sectors. The same thing cannot be said about the United States, much of the US has moved away from manufacturing and industrial output into services and IP. I don’t believe you can restart a zombie economy through expanding infinite Starbucks franchises and iOS game apps.

On a greater scale you have to imagine what made the US an extremely potent military power in WW2: which was the militarization of civilian factories. America no longer has any factories, it will take decades to repair the damage believing that the “information economy” could supplant real manufacturing and production.

>>50128778
>QE is not inflationary
I love how ppl like u are allowed to trade. It makes me lots of money!