tag:blogger.com,1999:blog-5661870875403268442.post7200651139642074719..comments2024-03-19T22:16:57.934+08:00Comments on My Little Corner: Quantitative Easing is about Payback!chantchttp://www.blogger.com/profile/02775213670329844143noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5661870875403268442.post-54374570160818527442010-11-11T23:04:06.053+08:002010-11-11T23:04:06.053+08:00Depends on how you look at it. The way I look at i...Depends on how you look at it. The way I look at it, this will happen:<br /><br />1 - Buying long term treasuries will free up the cash for businesses/people/etc.<br />2 - They will use the money to invest overseas because the returns are better (it's like GLP using the income from japan to invest in China).<br /><br />End result? USD is being used to buy foreign currency. True that it is notchantchttps://www.blogger.com/profile/02775213670329844143noreply@blogger.comtag:blogger.com,1999:blog-5661870875403268442.post-80642521754421075512010-11-11T21:52:13.384+08:002010-11-11T21:52:13.384+08:00The purpose of QE isn't to depreciate the US d...The purpose of QE isn't to depreciate the US dollar and even that isn't guaranteed because the Fed isn't directly driving the exchange rate downwards by buying foreign currency with USD. It's just exchanging govt. securities for cash. People do agree that it will tend to depreciate the currency because of market expectations. In other words, depreciation occurs only because peopleAnonymousnoreply@blogger.com