More QE on the way?

Graham_Devon

The European Central Bank is ready to expand or extend its quantitative-easing program if needed as a slump in commodity prices and risks to global economic growth threaten its inflation goal, said Executive Board member Peter Praet.

“Developments in the world economy and in commodity markets have increased the downside risk of achieving the sustainable inflation path toward 2 percent,” Praet told reporters on Wednesday in Mannheim, Germany. “There should be no ambiguity on the willingness and ability of the Governing Council to act if needed.”

Were how many years on now from the trouble in 2007/8? And the EU is still touting more QE? Meanwhile, China are throwing everything at the stock market again and the US is still making noises about possibly not carrying out the rate rise they may have possibly carried out.

Can QE even fix the problem anymore?

Thrugelmir

Graham_Devon wrote: »

Were how many years on now from the trouble in 2007/8? And the EU is still touting more QE? Meanwhile, China are throwing everything at the stock market again and the US is still making noises about possibly not carrying out the rate rise they may have possibly carried out.

Can QE even fix the problem anymore?

QE doesn't fix anything. Merely pushes the problem somewhere else.
China's actions will have wider repercussions in other Asian economies. Do nothing to stop mass migration to Europe either. The West cannot live beyond it's means forever.

padington

Mass migration to Europe plus more QE will mean higher house prices. Especially in London and some German cities.

Thrugelmir

padington wrote: »

Mass migration to Europe

Will bring social unrest.

Generali

Thrugelmir wrote: »

Will bring social unrest.

Rivers of blood...?

padington

Thrugelmir wrote: »

Will bring social unrest.

The Adam smith institute concluded this week that high and low skilled immigration simply creates jobs. They argued that even low skilled immigration allows native citizens to essentially become managers of new lower skilled workers.

Highly probably why the Rivers of blood never materialise in well organised democratic countries.

More people in your tribe simply makes the tribe stronger and more likely to succeed.

Generali

padington wrote: »

The Adam smith institute concluded his week that high and low skilled immigration simply creates jobs. They argued that even low skilled immigration allows native citizens to essentially become managers of new lower skilled workers.

Highly probably why the Rivers of blood never materialise in well organised democratic countries.

More people in your tribe simply makes the tribe stronger and more likely to succeed.

It's the key point missed by people who claim an economic reason for not allowing immigration: more people pay more tax and consume more stuff. It was rather like the people in my university town who hated students because they packed out the pubs etc. There is no way a town of that size could have supported so many pubs, banks and supermarkets without the student population.

If you don't want immigration because you don't like foreigners then I guess that's fair enough. Calling an economic crisis because your population has gone up by less than 0.5% in a year is simply innumerate.

CLAPTON

Generali wrote: »

It's the key point missed by people who claim an economic reason for not allowing immigration: more people pay more tax and consume more stuff. It was rather like the people in my university town who hated students because they packed out the pubs etc. There is no way a town of that size could have supported so many pubs, banks and supermarkets without the student population.

If you don't want immigration because you don't like foreigners then I guess that's fair enough. Calling an economic crisis because your population has gone up by less than 0.5% in a year is simply innumerate.

an excellent logical argument for infinite population growth: but you know it's wrong on so many different levels especially if one knows the price of everything and the value of nothing

michaels

Generali wrote: »

It's the key point missed by people who claim an economic reason for not allowing immigration: more people pay more tax and consume more stuff. It was rather like the people in my university town who hated students because they packed out the pubs etc. There is no way a town of that size could have supported so many pubs, banks and supermarkets without the student population.

If you don't want immigration because you don't like foreigners then I guess that's fair enough. Calling an economic crisis because your population has gone up by less than 0.5% in a year is simply innumerate.

The argument works fine if you have a pure market economy, doesn't work so well if you have laws restricting the growth of housing and infrastructure from matching the growth in the economy as a whole.

Generali

CLAPTON wrote: »

an excellent logical argument for infinite population growth: but you know it's wrong on so many different levels especially if one knows the price of everything and the value of nothing

Growth of less than half a percent a year isn't like infinity really unless you believe that the population of the world is likely to reach infinity.

I know the price and value of many things.

Thrugelmir

michaels wrote: »

The argument works fine if you have a pure market economy, doesn't work so well if you have laws restricting the growth of housing and infrastructure from matching the growth in the economy as a whole.

You try get getting a builder around here to even quote for a job. So much new housing they simply aren't interested.