In this week's Money For the Rest of Us Plus episode, I discuss: Quantitative easing as it pertains to repurchase agreement collateral and its impact on interest rates. Will the Federal Reserve sell its holdings of bonds? The Fed's reverse repo program. Nassim Nicholas Taleb's precautionary principle as it applies to QE and GMOs. Karl Popper's concept of the piecemeal engineer. Feedback from listeners on the interlude music experiment. The episode length is 17 minutes. … [Read more...]
29: Quantitative Easing—A Big, Fat Placebo
Why quantitative easing is both a financial placebo and an unpredictable game of musical chairs. Photo by David Maddison In this episode, you'll learn: What is a financial placebo.What is confirmation bias.How quantitative easing is like a game of musical chairs.How inflation can occur both with and without QE.How banks create money.Why QE is a failed and foolish policy. Show Notes Placebos by Seth Godin Bank of England paper - Money Creation In The Modern Economy by … [Read more...]