The Economist explains: Quantitative easing

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1. This is not free market or normal economics but multi corp controlled joke, free market means you get free money if you are a multi corp omg lol
   QE means you buy bonds with newly created money so it's deflationary not inflatioanry wtf are these trolling about in the past five years we had deflation look at oil, gold etc commodity prices. BUT when they stop buying bonds then inflation will began so now it's gonna begin especially without any legit reserve currency so all the money from bonds will go into gold because the Sdr is a joke they need a new stable reserve currency asap all the national currencies are finished..
2. according to Ben Dyson of PositiveMoney, QE - essentially - gave the top 5% £128,000 each. in the supposed hope this would stimulate bank lending - which it supposedly hasn't done.
   
   not a big leap of logic to think this enrichment of the few was the reason for doing it all along
3. Give QE to the students and take their loans, or give it to any low wage worker in debt... they spend their money or public works projects... the private sector deleverages thus the money and economy shrinks while a few get wealthy.
4. if they give the money directly to the people it would work , see Steve Keen... qe would be best invested in people, since it is people that invent everything. Prof. Richard Werner suggests Baby Bond Euros, which would not cause any inflation, watch BBC Hard Times with St. Keen, or Michael Hudson! Please! Its enlightening..and so easy. Where else can one get huge amounts of money for environment protection etc. ? Nature has no lobby, so make fiatmoney and c o n t r o l the use of it, this bankers qe had to fail , since they only drive asset prices high.
5. This is a very fancy way of how elitist bankers and the governments of the world steal your money, what else is new?
6. Okay, understood everything. But what's wrong with a shrinking money supply?
7. Wouldn't it be a better idea to give money directly to the working class that we know will spend it? If central banks print new money and transfer it to the working class you solve two problems at once, you help the unemployed people keep up during hard times, and in the other hand their spending pushes aggregate demand up which helps business and helps create more jobs that further sustain demand. And it also creates inflation which is good because it deflates salary bubbles which reduce operating costs and improve business margins which translates into more jobs and more economic growth at the end. 
8. I suppose we shouldn't be surprised that the Economist is in support of QE.  What actually happened is that the banks used the money to bolster their balance sheets that were in tatters after they lost all their money at the roulette table.  It was not passed on into the economy and if it were possible to see it, if it were 'tagged', we would find the $375bn of UK QE money given to the banks neatly tucked away in various places in their accounts, some not in their 'accounts' and some floating in the bay of St Tropez.  Of course, some of it was used to raid European economies who were forced to issue 7% bonds in a world where international base and inter-bank lending rates were almost on the floor.  The ECB and Fed of course also played their part in this charade that was promoted as economic stimulus albeit fashioned by Goldman Sachs puppets.   Finally as we move towards the 10 yr anniversary of the financial crash the sum of all evils will amount to a net gain for the banking sector and a tortuous and slow self-made economic recovery for everyone else following a lost decade of bank inflicted austerity and pain.  
9. Banks aren't "destroying money" by reducing their balance sheets, they're refusing to help inflate the money supply by making more bad loans. Meanwhile the fed is paying them a handsome interest rate to just sit on the cash that they give them through QE. The state is simply handling out money to politically connected allies and telling the whole worldwide economy to pretend that it has real value.
10. I wish all bankers the best, although history tends to repeat itself. e.g. when "POOR" people have nothing to lose, they become criminals.
11. The problem not addressed and which is happening is QE means that there is pressure on lenders to be borrowers because of the  effect on would be lenders.This effect is the flow on of new money at a lower cost to banks (lower interst rate) than would otherwise be available from other lenders in the market (this new money from the Fed Reserve). This in turn reduces the interest rate that lenders would otherwise have gotten and in turn dicourages savings and encourages borrowing and debt. As a further consequence investment in production by individuals reduces. The re adjustment to this form of society tends to widen the gap between those at the high end and those at the bottom simply because those at the top get first access to cheaper credit. The middle class is also left out so the middle calss will be pressured to reduce in size. The statement "keeping interest rates low " is an interesting one particularly in the US economy where there is a lack of investment mostly because interest rates are too low. This is bad since the exchange rate is affected by the lack of investment inflow which is bad for the balance of trade.
    The stupidity is the domestic money supply inthe 1930's did not fall as a result of less money printing. It shrank because the Federal Reserve started buying up more and more gold and at the same time allowing a third of banks to collapse since it changed the rules for banks making them stay with a too tight ratio of gold to dollars. The loss of money expansion caused businesses to collapse.
    The fact that QE is untested makes its bad thing to "try" because the outcome most likely would cause further damage rather than improvement. This damage has been the case in the USA where there is no real evidence QE has worked. What it has done is increased debt levels and had the aforesaid effects. The rich to poor gap has widened and so has the number of middle class incomes reduced.    
    
    The moral of the whole mess is "Don't muck with the currency you will only cause more damage" but this appears too complex for the policians to grasp and the alternative of covering things up by QE is too tempting for them."     
12. good stuff
13. i still don't get it. The balance sheets are shrinking, and the central banks create money, but those money is a loan, not money per se
14. seeing what "real" economists have led us to i might aswell trust a guy who studied dog shit all his life.
15. That's completely wrong. First off, no one buys iranian oil in dollars cause of sanctions banning people from doing so. China's entire economic model is based on heightened competitiveness from buying dollars to keep the yuan artifically weak, this means that if the dollar dissapears, it has MASSIVE effects for China, almost all negative, stop your jingoistic fearmongering.
16. Austrian economics is economics like geocentric astronomy is astronomy.
17. QE definitely did not prevent a deep recession. It just delayed a deep depression.
18. "Watch Peter Schiff on the SchiffReport and learn some real economics." Ya, because the best way to learn economics is from a guy who's not even economist, but who can loudly assert the same old Austrian nonsense. 
19. Question: from which funds do the commercial banks destroy money, how are they selected?