How come QE hasn't caused a massive explosion of hyperinflation?

Wrong

cool opinion bro which CC did you get your econ AA from?

We're starting to see it now sunny.

Look around you:

> new cars
> small businesses left n' right
> investment commercials
> housing prices 2x they were 1 year ago

It's happening again.

that's bullshit nigga, non-durable goods are sluggish as hell and more small business are closing than opening.

I'll agree with you on housing prices but that was a long fucking lag, all QE really did there was stop the sector from collapsing completely.

Well, it is true that the rich save more money than the poor percentage wise
The problem with trying to wring it out is that some of them might just leave with it which is even worse than saving

...

The created money isn't being spent on anything productive, thus the money isn't re-entering the economy which would cause inflation.

Ya, but those small businesses are getting their money from where? Banks? Right.

Venture capital doesn't necessarily come from a bank.

Not zerohedge like you

Try reading the wiki on "money supply" before commenting champ

>shadow banks
now that's just what we needed
normal banks were not bad enough i guess

What can a normal person do to protect their wealth and livelihood when the QE money enters the economy and inflation starts going out of control? Buy gold?

Turbo lag. Zimbabwe gave their banks a lot of printed money too. It just sat there for a few years. Don't worry, you'll see the consequences of QE soon enough.

Don't have to. Anything tangible that you think you can barter later on.

That being said precious metals will obviously do the best in a hyperinflation.

>free market

Stopped reading right there

>used cars selling for half their worth 10 years later with 100k+ miles.
you can see it everywhere.

because its not a free market. Banks are too big to fail. theres only one way for a bank to fail and thats fraud. but since they are protected by our government they can just keep fucking everyone over without consequence.

I checked the prices on craigslist for my make/model/year, 10 year old car with low miles.

The depreciation was anywhere from $2k-8k from what I paid for it new 10 years ago.

$2k. In 10 years. It's not that it's holding its value.

IT'S THAT THE DOLLAR IS GOING DOWN.

At some point you'll buy a car and its used price will go UP.

just buy guns. its the only commodity that you can sell for more than you paid for it even if you use the hell out of it. plus they are fun as hell.

It did hyper inflate shares/stocks. maybe if they'd just give every US citizen a bonus $1000 each month it would have sent consumer goods UP. who knows?

socialism is a bad word user.

so if anything happens to affect this, we are going to see hyperinflation. So in the future, something will happen to trigger super rich spending, and then the dollar WILL collapse. Unless somehow money disappears.

Jesus Christ.

The shadow banking system is a term for the collection of non-bank financial intermediaries that provide services similar to traditional commercial banks but outside normal financial regulations.

how is this legal?

>wanting to interact with gun freaks

lol no thanks

the dollar has gone up 25% in the past year or so...

Yes QE goes to whom? Rich? VCs are majority what again? JP Morgan anyone?

Love connecting dots.

To lower corporate bond yields and encourage investment, and in turn reduce unemployment.

Nigga, a large amount of us are normies. It's another thing were you are surprised by how many people are into it.

>a large amount of us are normies
Yes exactly.

Yes, because someone storing their money even in a bank account takes it out of circulation completely and does not increase the the bank's reserves so that it is capable of lending out more for useful activities. Oh no wait...

>Banks are too big to fail.
that's in the past now, the new slogen is no bank is too big to fail. of course it's somewhat gradual you can't just yank the carpet out under the fat bastards.

That's funny because there's literally no statistic for the business closings, and besides retail sales are higher than ever.

i know and it doesn't sound good at all.

Banks aren't lending.

That's arguably not true. The loan stock is larger than ever before and average loan sizes are up as well. Yes they are lending.

>The added liquidity sits on the sidelines of the banks because the trust just isn't there. They don't want to make more loans.
I can't tell if you're being serious

>Once the boom really gets going, we will definitely have some severe ketchup-bottle inflation. This is why the fed is being so dove-ish these days.

Retard.

Because most of that money was used to buy equity assets, and derivatives, easily exporting the buying power into a "product" and allowing the rest of the market to stay relatively, and relatively is a strong word here, untouched.

tell that to Lehman Brothers lmao

>traditional commercial banks
Commercial banking? Who gives a fuck

JP Morgan, as JP Morgan is a financial institution

Yes I agree. however thats pretty much what has happened except they only gave it ALL to a few people. I personally think they are practicing socialism NOW. Yet everyone blames the capitalist.

You have to ask yourself IF USA is NOT run by a socialist government then why did they give free money to the banks?is that sort of half way socialism? but because US GOV only gave free money to bankers they still pretend to be capitalist?I think this is the heart of your economic issues.

This right here, This is not true capitalism.

>How come QE hasn't caused a massive explosion of hyperinflation?
It has, but primarily in areas rich people spend money on; luxury , equities and so on. This is because rich people are the only people who saw any of that money.

>It has, but primarily in areas rich people spend money on; luxury , equities and so on.
Also these areas don't really count toward inflation figures.

I would also question the lower levels of US government and related bodies, How many people with Socialist ideaology are working for them? This is perhaps were the bulk of the economic problems stem from.

Is giving free money to these rich people still socialism, I think it is.

You guys do realize that the TARP (which was pretty much the largest bailout package, and what everybody is referring to when they say "gib moneys to da bank") was pretty much fully paid back by all the banks after the crisis. It's not like they just too the money and ran.

en.wikipedia.org/wiki/Troubled_Assets_Relief_Program#Participants

No I don't think so. In fact I think socialism would be confiscating their riches, rather than multiplying them.

yup in socialism everything is owned by the "people" and by that of course they mean the state. and everything is distributed and provided by the state.
of course such an economy will run a huge deficit. which can only be supported by state organized international criminal activity and or huge ever growing debt see north korea.

Where do you think that money came from? It's just new debt that was printed out of thin air.

Because the money went to banks not people. People's spending causes inflation. Lack of capital among people leads to deflation.

The money is going to those who already own huge chunks of non-cash assets, i.e. banks and their ilk.

The American consumer or business is a bad bet for lending right now because personal debt levels are off the charts. The people are just going to use that money to pay off debt, which will flow back to the banks. Where's the profit?

Invest banks can pump the money into the markets. Institutional banks are capped on how much they can have in the market but they're just sitting on the cash because lending to new business in America is a bad bet.

The real way to get the country out of its rut is to reduce household debt. But that would harm creditors, and creditors are the ones who bankroll elections.

Make sense?

On a related note, what is a good asset to have for when the current debt bubble collapses?

Bullets.

So much armchair tier retard info in this thread

"Free money to the banks"? You act like the 4 trillion in AE money has become yachts - yes the fact that they didnt go under allowed them to give themselves bonuses but youre getting way off topic

The QE money is never going to interact with the normal banking system - it cant cause inflation if it isnt apent on goods and services

Dude - go read up on "money creation" and "accounting" this zeitgeist tier reasoning isnt gonna fly around here

>On a related note, what is a good asset to have for when the current debt bubble collapses?
Cash.

I'm safe though, guys...right?

R-R-right?

If it is physical and in your personal posession the answer is yes. Do remember that there is historical precedent for governments confiscating gold and silver, so keep that shit secret and safe.

Retard alert

>good asset to have for when the current debt bubble collapses?

Food, water, water purifiers, electrolytes, secure shelter, firearms and ammunition.

And gold and silver once the dust settles, if it settles.

It's in my reach right now.

As far as confiscation, I have some gold bullion which they could """"legally"""" demand I turn in if they wanted to, but I have more in 18k and 22k jewelry, which doesn't count supposedly.

>what's a good asset for when the debt bubble pops?

>fiat currency, bro!

not him but really though, should we all start buying up gold or euros?

It's only big bad scary socialism if it benefits the middle class. Wealth redistribution from the poor to the rich is perfectly acceptable. :^)

Gold, silver, and commodities I guess. The basics.

Of course most people have no idea what the fuck is coming down the pike and think that printing currency to no end is fine and sustainable, so they'll be chimping out and raping and rioting when it all goes to shit, which is why you should have fundamentals covered first.

It's not like you have to sink every cent you have into gold and silver, but god damn. You tell people they should have some and they look at you like you're telling them about a mystical relic or some shit.

it's bad only if someone else does it, isn't it?

how dare you bring reason into our reddit-tier le banksters circle jerk

you know that not even has it been paid back, but it's been paid back in multiples? the govt has profited massively from QE

>Of course most people have no idea what the fuck is coming down the pike and think that printing currency to no end

You obviously have no fucking idea what you're talking about if you think that QE or stimulus packages are 'printing currency to no end'.

Go on smart arse tell us whats comming down the pike. You think that gold will save you? Think again dipshit, gold is more volatile than $ and always will be. Hense why we threw away gold back currency decades ago

It is super cringey in here.

Hey everyone postig about an inflationary apocolypse - what are the two main components of the m2 money supply? Without googling it

What variables influence average liquidity and hoe does the treasury market play into this?

Oh whats that? Youre knowledge of the subject all comes from the movie "zeitgeist" and listening to peter schiff?

Ok well the grownups are busy little dearies so run along

If you time it correctly, technically he's right.

What would you rather be holding?

>You obviously have no fucking idea what you're talking about if you think that QE or stimulus packages are 'printing currency to no end'.

Never said that QE had to do with printing currency. But are they printing currency? Fuck yeah. Is that good? Fuck no.

Is QE good? Fuck no.

>Go on smart arse tell us whats comming down the pike

Ok, dumb busted cunt: the "next" recession, which is really just the same one we had in 08, will be worse to such an extent that it could well be a full depression.

>You think that gold will save you?

In part.

>gold is more volatile than $

Good point, the dollar has been steadily and predictably losing nearly 100% of its purchasing power in 116 years. Very safe investment :^)

Fiat currency, with its 100% failure rate throughout history, is definitely the way to go!

>Hense why we threw away gold back currency decades ago

It was thrown away to remove a limit on how much currency can be printed, thereby making it easier to expand the U.S Empire and social programs with which to bribe voters.

>which is really just the same one we had in 08
i'm kind of glad someone else also recognizes this here. kinda sad about what's coming.

obvious answer is they did a good job to counteract massive deflation.

It will correct.

Well they just pumped a ton of currency into the market basically and none of the fundamental problems were solved or practices changed or stopped.

Nothing has improved. The most they did was postpone, and make it even worse than it had to be in the process.

I wouldn't be surprised if it happened this year, conveniently before the election.

my only regret is i don't have the capital to really profit from the ensuing shitstorm that inevitably coming. bought some silver might come in handy at some point. but it's kiddy grade really.

cause people are catching up to it and investing and cashing out of it at a similar rate as its growing inflation or hyperinflation only happens when changes are too drastic and supply way overextends and outpaces demand or vice versa

what did you get?

I have a total of 1/2 troy ounce between 1/10 oz coins and 1 to 2.5 gram bars, and also some jewelry.

My silver is about 2/3rds generic, RMC, Elemetal, and Sunshine Mint rounds and bars. 1/3 government minted, Canadian Maple Leafs and Cougars, British Britannias, and American Silver Eagles that I got on a one day sale (they're not worth it otherwise).

They didnt pump any money into the market you monkey

Jesus does anyone in this thread read?

The QE money is not in circulation and is just barely even being tapped by shadow banks. Its locked out of circulaion.

Its just liquidity on the feds balance sheet - no ones even cashing out of the s&p (which would take some of the money into circulation)

i bought a 100oz in a trial purchase. i wanted to hold like 500 at least but prices went up as my order was delivered.

With interest Rates up in june property bubble busts...I'll hold off till then.

I've tried to explain this 100 times. It's no use here. These people just want to believe what they want.

thing is is that everyone is talking about rate hikes in june
meaning that standing against the herd is going to make you the most profit

is it bad that I wanna see the world economy collapse and watch all these consumerists lose everything?

I personally only bought about 300oz of silver which is about 30-40% of my assets

Dont people lock in 30 years at the same interest precent? Rate hikes wont affect them?

I think a standard fixed mortgageis up to 4or5 years. different for each bank. I don't think they'll lock one in for 30 years those lock in rates are usually higher or lower than the floating rate based on what that bank thinks interest will do in the future.

so after 4-5 years they gotta renew at the going interest rate and that's when people are gonna get fucked?