Above is a clip from the front page story of the AFR Australian Financial Review – 16th Oct 2014
There are many many up sides to “QE forever”
I lot of people take the view that “QE forever” is ultimately a bad thing, I can definitely see some positives, and here is what i see as the clear winner:
The thing I enjoy about “QE Forever” the absolute most, is the fact that it is literally the economic policy equivalent of oh say:
State of the Union in full clown outfit regalia policy.
If all the people immediately around the President of the USA (including the President himself) decided that for very specific reasons that it would have an immediate positive effects in the future if he was to do the State of the union address in full clown outfit regalia, focusing particularly on:
- The extra large floppy shoes.
- The frilly neck ruffle attire.
- Huge red (or orange) curly hair.
- Horn to honk (in-between rounds of applause.)
- (And obviously) make up and red nose.
But then (and this is the key) very seriously communicated that policy to all the key political players in the administrative media, explaining that if they were to be overly critical or too negative of this policy they literally risk damage to the USA.
So the stakes are not so low when you are a political commentator.
And then the President proceeds to do the State of the Union address in full clown regalia pausing to honk a horn in between rounds of applause.
With serious political commentators making serious comment on the Presidents attire and why he and the admin think this will have net positive effects on the immediate future of the USA.
instead of saying something like ” hmm this is certainly and interesting twist, it appears that the President is dressed like a fucking clown…”
That is basically “QE forever”
I personally take a lot of personal satisfaction and amusement watching supposedly serious economic commentators have to comment on and quasi support a policy that is essentially the equivalent of saying :
“We are cancelling all future economic projections and relying completely on “black magic”, or just spinning this wheel.” (literally picture the south-park chicken scene.)
“QE forever” is clearly the clearest sign of “global economic insanity” how did we get here? that’s probably for another document but it’s certainly an interesting event in itself.
“QE Forever” is so far outside the bounds of what could be termed as an “economic policy” that it has to be amusing, and I certainly hope that if you are not an official political commentator (or even if you are) you can see the amusing side of it, and the obvious “end of the world” scenario it will have.
QE or “QE forever” has as much (actually significantly less) chance of a positive effect on the “economy” as the aforementioned outlined State of the union clown attire policy.
QE at this stage of monetary degradation has zero 0% chance of a positive outcome, and it can give any keen observer a very good indication as to weather there are, oh say, any more viable policies up the sleeves of our dedicated and capable banking corporate leaders.
most of all, this will be missed, and that’s part of the reason we are here, and it is actually pretty hilarious.