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RE: DID OUR "WORLD LEADERS" JUST PUSH GLOBAL RECESSION AWAY from our doorsteps?
That's a fantastic post, I wasn't aware that the US had already started Quantitative Easing, if they indeed have then it means yes there will be more domestic spending and the local economy will see growth, however in forex markets the dollar will lose value against other currencies due to increased supply and market sentiment related to it, this will devalue the dollar which means all imports such as technology, oil, Amazon and Ebay purchases etc will become more expensive, exports however will thrive. With the dollar devaluing it may destabilise the global economy because the dollar is still very much seen as the reserve currency of the world, could be good for bitcoin however.
Dear @thecryptodrive
Late thank you for this amazing comment.
I've been trying to understand concept behind Quantitative Easing and I'm starting to understand it. However I still don't know what are pros and cons of QE. Any view on that?
ps. I've seen that @lanzjoseg joined your team. Great choice. I've known him for over a year already and we're very close so I got to know him quite well. Jose is a very reliable and trustworthy.
Yours
Piotr
So QE is basically printing money, it puts a cash injection into the economy via government spending on infrastructure and whatever, creates jobs and growth but at a cost of inflation, more USD in circulation etc, so if the growth can organically sustain itself and outpace inflation from QE then QE was a success, if not then the flood of USD on the market will devalue the currency further, devaluation however does stimulate exports. Typically when QE happens a devaluation gets priced in by the market, and sentiment becomes bearish on the issuer.
Thank you for taking the time to explain how QE does work @thecryptodrive
The biggest problem I had while trying to understand this topic is concept of creating money backed up by debt. I'm not sure if QE does follow those "rules". It seem to me that QE are exceptions and are allowing to print money without new debt.
Am I right or am I getting something wrong again?
Yours
Piotr
To be honest I'm not sure if it creates new debt, but I know it creates inflation which is a form of debt in itself.