Thread: Quantitative Easing in the U.S. vs Q.E. in China

In an interview with Professor Galbraith on Al-Jazerra they showed a flow chart
on quantitative easing in the U.S. and in China.
In the U.S.the first level receivers of the money the U.S. Fed prints to buy bonds is going to banks and corporations.
In China the QE money went to construction and infrastructure projects. In the
case of China this most definetely improves the environment for business expansion and job creation for the benafit of the country.
In the U.S. this money the big banks and big corporations receive is going into the stock market like a sugar high. It is also fattening up balance sheets instead of being loaned out to improve the economy.This money is also flooding into
emerging markets in Asia as foreign direct investment. This investment in bonds and other assets can create bubbles and is driving up Asian currencies.
So where is the benifit to the U.S. here ?
How can this be allowed to happen?
Obama talked so much about infrastructue projects-where are they ?
There is something very wrong here-What it is aint exactly clear.

Boss Hogs....get to the trough, first...

Doesn't answer you question...but a fact.

Originally Posted by ssidewineder

In an interview with Professor Galbraith on Al-Jazerra they showed a flow chart
on quantitative easing in the U.S. and in China.
In the U.S.the first level receivers of the money the U.S. Fed prints to buy bonds is going to banks and corporations.
In China the QE money went to construction and infrastructure projects. In the
case of China this most definetely improves the environment for business expansion and job creation for the benafit of the country.
In the U.S. this money the big banks and big corporations receive is going into the stock market like a sugar high. It is also fattening up balance sheets instead of being loaned out to improve the economy.This money is also flooding into
emerging markets in Asia as foreign direct investment. This investment in bonds and other assets can create bubbles and is driving up Asian currencies.
So where is the benifit to the U.S. here ?
How can this be allowed to happen?
Obama talked so much about infrastructue projects-where are they ?
There is something very wrong here-What it is aint exactly clear.

No form of money printing(QE) ever leads to any form of long term sustainable growth.

If the government is magic and printing money works, then doesn't the government just mail everyone a $5000 check each month ?