drfredc Wrote:
Apr 11, 2012 4:34 AM
If one looks at QE as a black economic box and tries to explain what it's supposed to be doing, one may find the more plausible notions is QE is all about adding some price to the underground economy to make it roughly on par with it's value if above ground, then 'taxing' it (by the QE amount) and instead of giving that revenue to Congress to waste, the Feds give it to the banks to spread around. As such, it's perhaps not as inflationary and economically damaging as one might otherwise think.