"A Complete Failure": The 7 Things QE2 Won't Do

Bureaucrats are risk-averse losers. Don't expect them to 'Create' jobs. They destroy job.

Ax 40% first, then follow up with another 25%. Prune it, and it will grow better.

if you want to hire a real economist with intelligence you hire one with wit. No economist is smart enough to get it right. inflation can be peg'd to fat americans getting fatter waists. Fatter americans consume more than average size americans. They consume more sugar, cotton, rice, wheat, corn and lets not forget oil with their oversized SUVs that burn more. Inflation is going up in china at an insane pace because obesity is growing at double digit pace. Get a clue. compare the same car with a skinny person and compare a car with an overweight person, one will get better mileage over any span.

I remember this guy played a slimy, two-bit bookmaker on “The Sopranos”. He was excellent. He’s a NATURAL for those kind of parts.

Unions aren't the problem idiot! Corrupt politicians manipulated by bribes are our problem.

Do I smell a revolution ?

"Bust some unions"? It just goes to show capitalists are reactionary pigs on both sides of the spectrum.

The problem is whenever US print more dollars, the international commodities price goes up and cause the deflation of Dollar.
To solve this problem, S should have a dyal currency system
One currency should only be used domestically, and one currency should only be used overseas for trading and reserve/
With such arrangement, if you print more domestic dollars, it will not cause inflation internationally , and at the same time you increase the domestic money supply which will grow the domestic ecomomic growth lift up the price of housing, equity and help US get out of this mess. At the same time the supply of internatimal dollar will not increase which will cause the inflation internationally

f you want to reduce the consumption, you can adjust the exchange rate between domestic and international dollar

If input price by $1 and your income if fixed, it means your wage is cut by $1

If a pair of shoes made in China is $10 , while the same shoes made in US is $20, now the price of shoes go up by$15 due to the inflation of raw materials , while due to inflation, the price of the same shoes made in US is$23, and people will still buy shoes from China but with higherprice, which means US trade deficit with China will be even higher due to the effect of depreciation of Dollar, so in the end China will be benefit , and US consumers will be hurt

You've got to freaking kidding me!!!! Lower the minimum wage???? I can’t believe that Schiff hired this joker. He’s a washed up brokerage banker that couldn’t make a living selling Ninja loans. I’ve listed to him at other times. He’s a shill for ultra conservative values. I bet he pleasures himself kneeling down on the floor in front of Congress woman, Michelle Bachmans posters.

David "the greatest living economist" or "the only economist" thinks QE and the effective devaluation of the US dollar are good, for 3 reason (quoted below). Here's why he is Wrong.

China pegs its currency to the dollar and keeps it constantly devalued. They can "afford" to do this because (1) China is flush with cash, a rapidly growing economy, with an enormous continuing inflow of cash from their enormous trade surplus (with us, especially). In effect, they have more money coming in than they know what to do with; they can't expand their economy fast enough to use it all. So they are building up enormous reserves and holding large amounts of US debt. (2) They are still a poor country, with low living standards, a vast resource of "slave labor" and abundant natural resources. Their devaluation is thus done from a position of strength: growing prosperity and an ever-expanding economic base (the central goal of their policy); their devaluation literally does them good, not harm, in these regards.

The US, cannot mimic their strategy. We are now a large debtor nation, with an enormous trade deficit and a declining real economic base. We are still a wealthy nation and our high labor costs and expectations reflect this. We have a large drain of cash and wealth, not an influx, from trade. Whereas China has more money coming in than they know what to do with because they cannot spend it all fast enough, we do not know what to do with our dwindling money because we cannot compete with their low-cost economic advantages. Our devaluation is done from weakness not from strength: based on just printing money, debasing our currency, without the compensating influx of foreign cash (wealth), and without any real, rational economic growth strategy or prospects. We are shooting in the dark.

So we print and devalue and our wealth declines. China prints and devalues and continues to gain wealth and a powerful economic base. A path of QE has us locked in a struggle in which our strength is drained away while our competitors' strength actually grows. Guess where that must lead.

So here are the reasons David's 3 principles are Wrong:

"1, A devalued dollar makes our products cheaper and more competitive. This will bring growth and more employment." ?? ......

The 2nd assertion does not follow from the 1st. For example, if Chinese goods cost 50% less than ours, and ours drop by even 11%, people still buy Chinese, even if Chinese prices were not pegged to ours by their own devaluations. Also, "growth and employment" is not necessarily in America and for Americans, and in fact will NOT be. The QE funds dumped on the economy will be borrowed NOT for use in the US , but to fund a carry trade mainly in Asia , and in fact an economic expansion there, where all of developing Asia strives to emulate China's model. In effect, our devaluation and consequent low interest rates will fund an economic expansion in Asia which provides even more China-like competition "against" us. Why shoot in the dark in America when you can't miss in Asia?

Moreover, the 1st assertion does not follow from its premise. A devalued dollar does not lower the cost of foreign materials used or foreign labor. It raises them. Thus causing our products to be less competitive. And as already noted, our products will not really be more competitive ... China will still greatly undersell our prices.