Author Topic: Quantitative Easing - Theft by Inflation  (Read 4700 times)

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Denny Crane

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Quantitative Easing - Theft by Inflation
« on: September 19, 2012, 07:43:10 am »
Government prints money to buy back its bonds.
The result is prices rise as the country's currency is devalued.
In the US the first round of QE resulted in a 20% increase in food prices and a 59% increase in oil. 
After QE2, food went up a further 15% and oil another 30%.

The general economy is not helped or boosted as a result of QE because essential consumer prices increase.
In fact, every $10 increase in the price of oil takes 0.3% off GDP.
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