The end of "money" as we know it?

[Sydney Grew]

http://www.guardian.co.uk/business/2012/sep/13/fed-bond-buying-stimulus-growth

The chairman of the reserve bank of the united states yesterday announced their decision to "print as much money as they want, for as long as they want." Their stated purpose in doing this is "to keep people happy."

Not really a surprise; but what in the long run will be the consequences do members think?

[EdgeleyRob]

I generally find there's a lot of month left at the end of the money

[teamsaint]

I generally find there's a lot of month left at the end of the money

Are you budgeting your music correctly , ER? just asking, like !
(pS know the feeling !)

[Petrushka]

...what in the long run will be the consequences?

Rip-roaring inflation.

[Old Grumpy]

http://www.guardian.co.uk/business/2...timulus-growth

The chairman of the reserve bank of the united states yesterday announced their decision to "print as much money as they want, for as long as they want." Their stated purpose in doing this is "to keep people happy."

Not really a surprise; but what in the long run will be the consequences do members think?

Afraid I've no idea - but this may be the end of money as we know it (or not, as the case may be).


OG

[mangerton]

Afraid I've no idea - but this may be the end of money as we know it (or not, as the case may be).


OG

I don't fancy that at all. It seems to be the very opposite of taking care of the pennies, and we all know what the proverb said about that.

The answer to the original question, as Petrushka said, is rip-roaring inflation. For further details see Germany in the 1920s, and Zimbabwe much more recently.

[secret squirrel]

I still have a Z$5 banknote somewhere....

Rather like the face-value of the old Green Shield stamps: worth 0.000001pence probably!

A worrying situation, certainly if indeed it comes to pass.

SS

[Serial_Apologist]

I don't fancy that at all. It seems to be the very opposite of taking care of the pennies

And not only that, but a green light to any would-be mugger or pickpocket to nick what would become the sole portable means of financial transactions from some poor unsuspecting victim, probably elderly or disabled.

[Boilk]

http://www.guardian.co.uk/business/2...timulus-growth

The chairman of the reserve bank of the united states yesterday announced their decision to "print as much money as they want, for as long as they want." Their stated purpose in doing this is "to keep people happy."

Not really a surprise; but what in the long run will be the consequences do members think?

The Federeal Reserve Bank is not Federal, not a Reserve (unless you count dollar printing machines as assets), nor a Bank; other than that, its name is fairly accurate.

Printing money devalues currency (which is what every QE does) because there is no corresponding increase in assets to back-up the extra notes. It's simply government "kicking the can down the road" while still in office.

A good primer on the murky history of this unnecesary and self-serving "bank" can be found in The Creature from Jeckyll Island.

Alternately the author is interviewed on TV here from about 4:30 in, and inerviewed on radio here.