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Source link: http://archive.mises.org/16102/is-qe3-ahead/

Is QE3 Ahead?

March 18, 2011 by

History is littered with monetary managers who believed they were in total control — until the disaster hit. FULL ARTICLE by Llewellyn H. Rockwell Jr.


William P March 18, 2011 at 8:34 am

“As an aside, maybe we should just start referring to the QE[n] administration, inserting the appropriate number, since otherwise these presidents are mostly interchangeable.”

May I say-this statement is completely absurd.

Mechanized March 18, 2011 at 10:03 am

Why is the statement absurd in your opinion?

J. Murray March 18, 2011 at 10:52 am

It just is because he said so.

William P March 18, 2011 at 1:51 pm

I know it’s passe in certain libertarian circles to suggest that there is any difference between our two big parties, but to assert that GWB is identical to Barry Hussein is unbelievably ridiculous.

It’s “so” because they have different approaches to everything, from spending, to entitlements, to foreign policy, to dealing with allies/enemies, to Israel, to how they answer questions, to their legislative tactics, to the judges they appoint, etc. etc. etc.

Daniel March 18, 2011 at 2:27 pm

Maybe in size but not in kind

J. Murray March 18, 2011 at 4:57 pm

Because, in the end, both of them believe in spending and entitlements. Both of them believe in giving special treatments to certain countries and to disadvantage others. Both believe that certain segments of the population deserve largess. Both believe they have authority over my life. They’re the same, the methods are just window dressing. I don’t see a huge difference between the thief that threatens me with a baseball bat and the thief that threatens me with a lead pipe. Ya, they use different weapons, but the end result is the same.

JoshINHB March 18, 2011 at 10:57 pm

It’s “so” because they have different approaches to everything, from spending, to entitlements, to foreign policy, to dealing with allies/enemies, to Israel, to how they answer questions, to their legislative tactics, to the judges they appoint, etc. etc. etc.

Is this parody?

Name one substantive policy that has changed since the inauguration of Obama.

William P March 19, 2011 at 3:34 pm

Ha, just because you don’t follow politics doesn’t mean radical changes don’t occur everyday under this administration. I literally wouldn’t know where to start with such a question. If you have a problem with Medicaid, which I presume you do, you should have a problem with an administration that essentially expands Medicaid to cover families who earn up to $80,000.

The Obama administration has implemented cap and trade through the EPA after it had been rejected by the Congress, and ruled out by the courts. The Obama administration’s EPA decreed through administration law that cap and trade is now the law of the land, a direct rebuke of Congress and the courts, and so it stands right now as law of the land.

Our interior department has all but banned expanding energy resources. They issue permits of exploration and not for extraction. Only 1 permit has been issued since the BP spill. Bill Clinton himself called this “crazy.”

It used to be that Congress would appropriate funds in order to implement law. Obamcare subverted this process by securing funding for a decade at a time, making it all but impossible to stop its implementation while there is a Democratic president. $120 billion has been allotted to the bureaucracy (the Executive), out or reach of the legislature (that is, the law making body of government that the people can affect through elections).

General Electric is all but a wing of the Democrat party at the moment. It funds MSNBC, a Democrat propaganda machine. It has a vested interest in Health IT services, and therefore interested in seeing Obamacare implemented.

The National Education Association has been washing money through its union and funneling it into the Democrat party, which perpetuates a symbiotic relationship between the government and the union representing virtually all teachers nationwide. It has been this way for decades, yet, and it explains why there is never true education reform. The union extracts money from the tax base, and so the citizen is involuntarily giving to the Democrat party and electing those whose interests directly oppose their own.

We couldn’t have been happier to run Mubarak out of town, but the terrorist Gaddafi, friend of Rev. Wright, Farrakan, etc. we barely notice. France and the U.K. take the lead. Odd, isn’t it?

Democracy ain’t perfect, I know. I’ve read Menckenn and Nock and Rothbard etc. But until human nature changes, the most progressive (in the true sense of the word) form of government is Constitutionally-limited democracy: Constitutionally-limited because any good government must have strictures to keep it confined to essential tasks, and democracy because it provides for non-violent transition of leaders.

The Republican leadership has been atrocious in their dealing with Obama in 2011. I realize this. If they do not get their act together they’re going to split the party. But we’re the ones who suffer from their incompetence, and thus it behooves us to speak up, educate, organize, and elect more legislators who are guided by our Constitution, and not their own vision of an ideal society.

Friedrich March 18, 2011 at 9:16 am

I wrote about that over and over again, just a few days ago.

snake oil sellers

or some time ago:

And still the same brain washed solution is tried. Yes junkies is the right word, but in this case we can be littel harsher and name them defrauders. The steal the money through inflation. Nothing is more perfide than seeing one’s values diminishing because of “inflation”. We have had it two times extreme in Germany the last 100 years. And now it seems the word prepares for a nother round of hyperinflation. And we all know it’s all the fault of “speculants” never ever the “clever” bureacrats or “we-can-do-everything” guys….

J. Murray March 18, 2011 at 10:54 am

Except that, historically, people didn’t actually buy into the snake oil salesmen. That’s why they were called snake oil salesmen, no one believed them, were the butt of jokes, and regularly run out of town when they tried to set up shop.

Friedrich March 19, 2011 at 3:14 am

Oh people do have believed and still believe even more stupid things but snake oil. Thy believe in getting rich by “credit”, the think bubbles are making them richer and believe it or not they do believe in taxes and government. So the snake oil sellers do make business and money as never before ;-(

tfr March 18, 2011 at 11:11 am

Have you noticed that the “G7″ have declared they will “support” Japan and drive down the value of the Yen? What could this involve but firing up the printing press yet again?

J. Murray March 18, 2011 at 11:21 am

Because the best thing for a nation reliant on importing the raw materials necessary for rebuilding efforts and immediate medical attention is to make it more expensive by debauching the money. Great move.

greg March 18, 2011 at 12:27 pm

QE3? I really don’t think so, the economy seems to be in a recovery cycle.

We do have to address unemployment, and as an employer, the problem is unemployment insurance. All our laid off workers are collecting unemployment and if I hire them back, I have to pay a higher unemployment tax based on their pay. This tax will be held for 3 years, so it is my best interest do work with the people at hand and hold off hiring until the 3 years are up.

So if the government really wanted to jump start hiring, limit the unemployment tax increases!

Daniel March 18, 2011 at 1:27 pm

Were something like you propose to be ever implemented, it would be amusing to watch the unintended consequences unfolding from other machinations the government has put in place to “help”

I will then ask you how is the Ptolemaic system working out for you

J. Murray March 18, 2011 at 1:48 pm

A better option is to eliminate unemployment insurance. What better way to stymie an economy than to charge businesses more for everyone they hire?

Frank March 18, 2011 at 2:15 pm

“History is littered with monetary mangers who believed they were in total control — until the disaster hit.”

I would like an article that explores this claim in detail and provides examples and analysis. Thank you.

William P March 18, 2011 at 3:05 pm
Frank March 18, 2011 at 5:27 pm

Wow. Thank you! I’m reading Road to Serfdom right now and will read the longer of these articles/books after I finish.

Ray Rock March 18, 2011 at 3:05 pm

There will be a QE3 and QE13 and QE33 etc because we can’t help ourselves. Junkies is the right concept because that’s what we are.

Politicians and Wall Street are addicted to the Fed feeding their habit. If they stop it will be nasty in the short-term, but we’ll all be much better off in the long run. The problem is that with elections every other year there really isn’t a politically good time to detox, so the Fed will keep right on feeding the habit because they don’t know what else to do.

Walt D. March 19, 2011 at 12:05 am

There is no need for QE3 – the Ben Bernank should take a page out of Bill Gates book and skip straight to QE5. He should also start rolling out patches. He could even put a call center in India !

Freedom Fighter March 19, 2011 at 7:32 am

“These various attempts to restore the inebriated happy time have unpredictable and uncontrollable effects, and the metaphor helps here, too.”

On the contrary, the effects are very predictable. World wide poverty and inflation, trade wars and later on real wars.

Michael Pollaro March 19, 2011 at 9:54 am

Imho, QE3 will come, as will QE4 and 5, as long as the U.S. government continues to borrow and spend, for eventually no one will be left other than the Fed and its private banking partners to buy (read monetize) the debt. I examined one likely road map to those QEs here…


It helps that one of the great inflationists of all time, a person who seems to have learned all the wrong lessons from the Great Depression, happens to chair the Fed.

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