mvpjesuslovesu - more electronic dollars via QE = a lower price per dollar against other currencies, all other things being equal. Mind you that downward pressure is balanced to some extent by demand for the US $ as a safe haven. Nonetheless by itself QE weakens the dollar, just as the British equivalent weakens sterling.
miradvorak - maybe but it's a bad idea nonetheless. The inflation spike we are seeing is a direct cause and that's lowered consumer spending in terms of the volume of goods they can afford to buy for the same £1 they had a year ago. In turn that's widened our UK output gap. Grim stuff.
Another problem with QE is that it basically just creates more debt. Economies grow by savings and investment. You can not spend your way out of debt. The smart people are saving their money and the dumb people (government) are spending money. Thanks for the video
Ceasar19abm and TigerGrumman - thanks for the feedback! I agree that more people should understand some of the issues I talk about. Most (City) commentators make them more complicated than they actually need to be and that puts people off. Sadly, I've a way to go to catch Lady Gaga....:) Tim.
Thanks a lot! I love these videos!
asdnut 3 days ago
mvpjesuslovesu - more electronic dollars via QE = a lower price per dollar against other currencies, all other things being equal. Mind you that downward pressure is balanced to some extent by demand for the US $ as a safe haven. Nonetheless by itself QE weakens the dollar, just as the British equivalent weakens sterling.
MoneyWeekVideos 2 months ago
great video thanks! I was just wondering if you could clear up why the dollar would depreciate with QE2? Cheers!
mvpjesuslovesu 2 months ago in playlist Uploaded videos
miradvorak - maybe but it's a bad idea nonetheless. The inflation spike we are seeing is a direct cause and that's lowered consumer spending in terms of the volume of goods they can afford to buy for the same £1 they had a year ago. In turn that's widened our UK output gap. Grim stuff.
MoneyWeekVideos 3 months ago
Look at M2 and M1 money supply, QE is about maintaining steady growth of M2, they are not sharply increasing M2.
miradvorak 3 months ago
MARVELLOUS
parzrelmuzik 3 months ago
Another problem with QE is that it basically just creates more debt. Economies grow by savings and investment. You can not spend your way out of debt. The smart people are saving their money and the dumb people (government) are spending money. Thanks for the video
SpaceWalkTraveller 3 months ago
Ceasar19abm and TigerGrumman - thanks for the feedback! I agree that more people should understand some of the issues I talk about. Most (City) commentators make them more complicated than they actually need to be and that puts people off. Sadly, I've a way to go to catch Lady Gaga....:) Tim.
MoneyWeekVideos 4 months ago
Tiger you are absolutely right this is one of the most critical issues of our lifetime and it has a pitiful number of views!
Ceasar19abm 4 months ago
My latest video "what is operation twist" is now up too under moneyweekvideos. Covers the latest version of QE being mulled by the Fed. Tim.
MoneyWeekVideos 5 months ago