Misinformation From Soros On QE

Mr Soros , interviewed on CNBC (LINK):

Soros said that the U.S. needs to reestablish growth to help shrink its debt pile and that the Federal Reserve‘s policy of buying U.S. debt, is the right one since it doesn’t add to the net amount of debt outstanding. “It’s about as close to a free lunch as you can get,” he said.

Nonsense; there is no free lunch, or close to a free lunch, in finance.  If the Fed were not buying bonds, then bond prices would be lower, interest rates would be higher, and would have been that way for some time.  Thus the government would not have been able to afford its cumulative debt load and would have had to have either raised tax revenues or cut spending.

 

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1 comment to Misinformation From Soros On QE

  • PB

    Absolutely. Good post. But, look, Mr. “One World Gov’t” Soros always has an angle. He’s smart, Shrewd and of course a man empty of morals or ethics of any sort. The means justify the ends. He’s all about redistribution and the quickest way is through the government. he’s got HIS president in there so he’s all good.