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The Forum > Article Comments > The RBA`s struggle about what to do > Comments

The RBA`s struggle about what to do : Comments

By Henry Thornton, published 1/10/2013

In the end, the Aussie dollar will only be tamed by Banana Republic #2 (unlikely with this government) or some sort of tax on capital inflows.

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Observations like this still annoy me.

>>It could try quantitative easing, and quite literally double the money supply? All that's needing to accomplish that is a few strokes on a keyboard!<<

Yep. All that is needed is for someone to sit at a computer, and stroke its keyboard. Presumably, it doesn't matter who is doing the stroking, probably some idiot somewhere in the global bankster community.

But it is just a bedtime story. A bit like those reds-under-the-bed tales we were told.

Back then, all that was needed to end the world during the cold war was simply somebody, somewhere, pressing a button.

As I recall, it was usually red.

The image was a powerful one, no doubt about it. But totally mythical, in the sense that the button was at the end of a very long command line. And that the wherewithal to actually unleash all that nuclear destruction had been painstakingly assembled, over a number of years, each unit with its own purpose, power and direction. After all, the button had to have some kind of practical connection with the real world, in order for it to have any impact at all.

The chain of events needed for that finger to do its deadly work was long, and complex.

These days we seem to have a similar imaginary red button, only this time it is a computer mouse, or "a few strokes on a keyboard".

In order for our modern-day red button to actually do anything at all, it needs to be attached to specific financial instruments, that have to be created, priced and sold, before anything actually happens. And the chain of command to actually caress that little mousie into action involves a lot of mathematics, and a fiscally attuned government. You don't just wake up one morning and say, "I know, let's double the money supply".

QE is a process, not an event. It is designed to address part of a very complex series of problems.

It is not a red button.
Posted by Pericles, Wednesday, 2 October 2013 4:20:27 PM
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Pericles they have more than doubled the money supply. World GDP = $70 trillion. World Derivative market = $700 trillion. All this money still enters the non productive gambling derivative market while the real economy gets starved of cash. They are a bunch of economic terrorists.
Posted by Arjay, Wednesday, 2 October 2013 5:37:42 PM
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