What is "Quantitative Easing" Anyway?

The only people whom deflation is bad for are banks and housing speculators.

Deflation of house prices makes them affordable for us younger generations, or any of us outside the corporate C-suite.

"QE" is more orwellian coverup of what the banksters are really up to.

A) helping politicians kick painful decisions down the road, so they will be even more painful
B) theft of everyone's savings but making them all diluted (printing more money makes existing money worth less)

Instead of a fancy word, why not be forthright? The big banks are creating a bigger mess of currency to prop themselves up and delay the "day of reckoning."

Your article correctly points out that Massive Money Printing usually ends in tears for savers. Zimbabwe is a good example. So is Germany. The Japanese people are suffering due to the insane yen-carry trade. Only the big corporations, banks and elite are doing well in Japan.

Central banks SHOULD stop creating more debt. Debt is heroin, and I don't know of any addicts who benefit from more substance.

Wow. I put this post in Google Translate for bureaucratic-to-English. It's still churning.

If the rise in housing costs (and everything associated with it)over the last decade were a "bubble" wouldn't "deflation" be the letting the air out of of the bubble bringing prices back to where they should be? Why is this bad? We can't keep the bubble inflated continuously. We're all out of air.

Hyperinflation is definitely something the U.S. needs to avoid. We want America to come out of this recession stronger and more resilient than ever, and hyperinflation is definitely something that could destroy that. That, and if the public doesn’t start putting money into local resources instead of national, monopolizing chains. We have to think different to be different!

Really? Come on. I haven't heard such an uniformed take on the Fed and money printing like this in a long time, if ever. Wake up! Look at commodity prices. They're up, they're way up and, if the Fed keeps it up, Americans can count on their standard of living plummeting. Corn prices are up 90% in under a year. Silver is up from $4 in 2005--when everybody was busy buying over priced houses--to $30 today. Now look at the chart for America’s Long Dates Treasury Bonds – 20 year bonds – these are plummeting! America’s “safest debt”, 20 year treasuries are being dumped, because huge institutional investors and Governments around the world know, the U.S. Dollar is doomed! What you’re posting here is very narrow, and one sided.

Governments and central banks throughout history have always tried to print away their problems, claiming that deflation is the worst case scenario when, in fact, inflation is far more damaging to the average person--no question. Your savings get wiped out. You're a personal finance site, trying to convey to people the merits of saving money, but you're not accurately presenting the facts about money printing, watering down one’s savings, killing the purchasing power of the dollar. Remember Zimbabwe? This is a prime example in recent history, of a government trying to print away their problems. You actually used the word “wealth” to describe the infusion of dollars be the Fed….I am God Smacked! That’s not wealth, you can’t create wealth out of thin air!

As for Japan, yes, the Fed loves that example. I have lived in Japan, worked there, and I'll tell you their government is bankrupt, like the U.S. government, but the people have a HUGE savings rate. The myth about ‘quantative easing’ (read: government speak to confuse the masses on the truth of their dubious actions) not happening fast enough in Japan is a joke. The Japanese central bank and the Japanese government, like the U.S. counterparts, propped up bankrupt companies like Mitsubishi and hoards of banks. Sound familiar? GM, AIG, Fannie Mae and Freddy Mac? American citizens, hard working people, are going to be the ones to see their standard of living drop. Companies and governments need to go bankrupt if they are incompetent. You or I will! If you are I is incompetent we either get fired or go broke. If you print money to bail out companies and banks you prolong the problems and make them worse. I say you, because America is still a democracy, so it’s really you’re responsibility – As a member of the American press!

Enter China. China technically owns the most U.S. dollars in the world outside of the U.S. The more the Fed prints, the more the Chinese get screwed on their investment in the U.S. Dollar. China is planning and executing their exit from the dollar. They are leaving the dollar, which is the world's reserve currency because it is UNSOUND. Unreliable as money, too high a risk to their prosperity! If the holders of a currency can't be sure of that currency’s future purchasing power, they dump it – straight up. Countries around the world are dumping the dollar - individuals too, including many Americans.

This is maybe the most important problem facing America and it’s unfortunate that it’s being covered in an uninformed and irresponsible way. Americans who have identified this trend (it is not new) and who have moved into sound money like gold and silver have protected their savings. Going forward, those who hold the U.S. dollar will see their savings vanish. That little wheel barrow you have used to symbolize QE means something. It's a reminder that in Germany in the 1920's, before Hitler, the German government tried to print away it's problem--same old story--and people in Germany saw their currency's purchasing power evaporate. Hence, you would bring a wheel barrow of cash to the grocery store and come out with something that fit inside your purse. People burned their paper money, because it was cheaper than using it to buy fire wood. This happens all the time, bankers and governments hide it the same way, all throughout history and, in the end, the people suffer.
If fact a friend commented just yesterday of an American Dollar Investment he had made in 2003 which cost him $7800 Canadian and is now worth…if he is lucky and the company doesn’t go belly up, $5500 Canadian Dollars. So, he’s lost $2300 on the exchange rate over 8 years – because of quantitative easing. So, the world at large has a lot riding on Americans, to wise up, do what’s right.
The proof is in the money. If you want good info about money, look to your fellow Americans who have navigated this mess, seeing it long in advance and making the right moves to protect themselves.
You owe it to yourself to – and I have zero, zilch, absolutely, positively, nada cent of financial interest in saying this- google Porter Stanberry or go to www.endofAmerica2.com or Stansberry Media on Youtube. This man warned investors to avoid the catastrophe in 2008. Unlike most financial pundits, Porter Stansberry knows a lot about accounting and finance and the proof is in his success at foreseeing the consequences of quantitative easing.
Quantative easy is killing your dollar. Other Countries are beginning to refuse the dollar – if you travel to Europe or Asia you see, people around the world know the dollar is doomed. Many currency exchanges in foreign countries refuse to buy your dollar.
People need to know the facts, not another sugar-coated, garbled up mess of half truths and lies. This is me pleading with you to re address this very serious issue facing your nation.