Quantitative Easing Explained...
by darthfader 10 Replies latest social current
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leavingwt
Further commentary on the video, here. . .
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BurnTheShips
The natural result of a stable currency is a slow falling of prices for many things. This is because, generally, as we learn how to do things better, we can do them less expensively. A great example of this we are all familiar with is the personal computer.
BTS
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darthfader
lwt: thanks for the link. Im not sure I have even begun to understand the issues/impact yet...
bts: I would assume that the slow and steady fall in prices is due to the increase in efficiency in the creation of goods and services. Once all the efficiencies are "wrung out" of the process, there's no more room for lower prices. All the "low hanging fruit" has been picked by using technoology and "off shore" labor to produce cheaper and cheaper goods. At that point, prices are effected more by the strength of the currency than the increased efficiency of the creation of goods.
cheers
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BurnTheShips
Darthfader, technological progression never ceases over the long term.
BTS
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BurnTheShips
QE2 was supposed to lower interest rates....
....in order to stimulate the economy.
Selloff Slices Into Dow After Debt Fears, Inflation in Overseas
The complaining comes in from all quarters:
BTS
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BurnTheShips
Frozen turkey is 28% higher this year than it was last year. No there is no inflation, and for that we can engage Thanksgiving. These aren't the turkeys you are looking for.
BTS
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darthfader
BTS... LOL on the Jedi- Turkey comment :)
I would agree that there is always technical progression, but I think it becomes less significant over time -- eventually the improvements are lost in the "cash flow noise" of the system.
(but i could be wrong... I frequently am)
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BurnTheShips
I would agree that there is always technical progression, but I think it becomes less significant over time -- eventually the improvements are lost in the "cash flow noise" of the system.
On the contrary, I think it accelerates. It always accelerates.
BTS
