Farewell QE, you have been a magnificent success – Telegraph

See on Scoop.itDidYouCheckFirst

The moral contours of QE depend on your angle of vision. But would you rather be surrounded by mass unemployment?

Greg Russak‘s insight:

This article is pretty wonky, and I don’t profess or pretend to understand all of it. There a couple of basic takeaways for me.

The main one is this: AUSTERITY DOES NOT WORK.

“The crippled eurozone alone has chosen to stagger on defiantly without monetary crutches. The result has been a double-dip recession of nine quarters, the longest since the Second World War. The austerity regime has been self-defeating even on its own crude terms. Debt ratios have ratcheted up even faster.”

…and this….

“We can all agree that America’s recovery has been feeble. The unemployment rate has fallen to 7pc, but that masks the damage as discouraged workers drop off the rolls. The labour participation rate is still near a 40-year low of 63pc. Yet there is no comparison with the eurozone’s jobless rate of 12.1pc, let alone the crucifixion of Southern Europe’s youth.”

(Side note: I just heard on an NPR report yesterday that youth unemployment in Italy is 25%. Wonder how much higher it needs to get before people take to the streets.)

The other takeaway is this sobering fact:

Economies don’t work like household budgets, and it’s a dangerous oversimplification in the extreme to believe that they do.

See on www.telegraph.co.uk


Author: Peaceful Patriot

Proud middle class husband, father, and progressive liberal. Registered Non-Partisan but have much more in common with Democrats than Republicans. Consider Libertarians to be immature and underdeveloped in their understanding of reality. An atheist who doesn't care what you believe so long as you stop pretending the Founding Fathers intended for you to legislatively force your beliefs on everyone else. Laughs out loud in mocking disdain at the abject lunacy of birthers, climate science deniers, and hard core tea partiers. If that offends you, too bad. You're not rational and have no place at the adult table.

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