QUOTE(mopster @ May 10 2013, 11:03 PM)
hahah bulls eye...
if this mega super printing fails to jump-start the Japanese economy...
then the world can watch the real version of "Sinking of Japan" liao...
Jpn got less thing to worry than US coz commodities are not priced in Yen.. so they no need to worry abt their currency affecting the gold..
whole point of QE is to make their products more competitive -> boost sales -> increase earnings -> hire more workers -> increase domestic consumption -> boost domestic economy...
that's ideal larrr
but i think most of the money will not reach the avg ppl..
employees will kena squeeze for more outputs.. shareholders gets fat divvy cheques... higher mgmts get all the bonus...
that's what i think la..
plz correct me if i'm wrong.. :respest:
From the latest massive QE around the world, I only see rich become richer, while poor one remains status quo. < just my personal view. if this mega super printing fails to jump-start the Japanese economy...
then the world can watch the real version of "Sinking of Japan" liao...
Jpn got less thing to worry than US coz commodities are not priced in Yen.. so they no need to worry abt their currency affecting the gold..
whole point of QE is to make their products more competitive -> boost sales -> increase earnings -> hire more workers -> increase domestic consumption -> boost domestic economy...
that's ideal larrr
but i think most of the money will not reach the avg ppl..
employees will kena squeeze for more outputs.. shareholders gets fat divvy cheques... higher mgmts get all the bonus...
that's what i think la..
plz correct me if i'm wrong.. :respest:
QE, boost bond price, boost equities pricing.
Who benefit from those price rising?
The investors of those asset,
who is the majority owner of those asset?
The one has plenty of money to invest. (invest needs money).
Average people and poor has little left every month, where got extra money to invest.
Average people cannot leverage or using margin to buy those asset, while banks are queuing to give those richer one margin, investment loan etc.
QE also may boost commodities price
Who benefit from commodities pricing rising?
The producer of commodities.
Who own the producer/company?
The shareholders.
Bulk of shareholders come from which group?
That's why QE money may not reach the average people.
The most average people can benefit from the QE, is job may be intact, instead of retrenchment.
But may be at the expense of inflation.
May 11 2013, 04:30 PM
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