The Senior Lecturer tells us this will cause disaster

Next month the Federal Reserve will start to run down the stock of bonds which it bought under the quantitative easing (QE) programme as Janet Yellen signals the end of the scheme to pump more money into the US economy.

Interest rates are also set to rise further in the coming months as the US economy adapts to a higher pace of growth, allowing rate hikes to move the Fed further away from its emergency policy position.

This will mean that the Federal Reserve is actually destroying money and as Ritchie tells us this means disaster, complete chaos for the economy. That’s after his insistence that it will never happen of course. And after his insistence that the UK QE debt is cancelled because no one will ever reverse it.

Ritchie still not having grasped that destroying money is the purpose of reversing QE of course.

I’ve not looked at the US market numbers as yet but I expect the reaction to be nothing, near nothing at all.

7 thoughts on “The Senior Lecturer tells us this will cause disaster”

  1. I suspect that everybody who’s vaguely sensible knew it was at least partially going to be repaid, the question being how much, when, and at what rate.

    I suspect that the plausible scenarios were already priced into the market already.

    Can’t wait for the Tox Dadger’s mental contortions to explain why he’s always right though.

  2. I made a truckload out of betting that QE would head straight for the stockex, the natural home of money being the markets.

    Now to see if the inverse holds true.

  3. Tim

    It’s the difference between having a GCSE level or higher understanding of Money Theory and absolutely no understanding. (I hasten to add your understanding is way above GCSE!!!) Murphy is actually more ignorant than anyone who has read the first three chapters of ‘Economics of the Real World’ by the late Peter Donaldson, my GCSE textbook which I still have a copy of…

  4. Next month the Federal Reserve will start to run down the stock of bonds which it bought under the quantitative easing (QE) programme as Janet Yellen signals the end of the scheme to pump more money into the US economy.

    Yes, but what is her evil sister, Barbara Yellen, signalling?

  5. Given that Murphy can’t seem to keep Yellen’s name straight from post to post, isn’t about time someone got him tested for an early onset of dementia?

    Of course, first we’d have to find someone who cares enough about him to bother…

  6. @ Dennis
    Ah, but in the UK we have this marvellous National Health service which will do it for free if a request is made by a proper person …. unfortunately it make take three or four years before they get far enough down their list of priorities to examine Mr Murphy.

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