Quantitative Easing

Propel, propel, propel your craft placidly down the solution.  Ah the wonders of our native tongue!  Using high-falootin’ words, of course, may sometimes prove confusing.  That is why, here at Atlas, we employ just the simplest of prose.

Of course, not everyone does the same.  Consider a term now gaining in popularity which is much ballyhooed in both economic and political circles referred to as “quantitative easing.”  In what may be, perhaps, an attempt to be even more obscure, many just call it “QE2,” with a wink as they complete their thought with some sea-faring innuendo.  What does it mean?  A recent issue of The Economist provided a refreshingly simple definition: “the printing of money to buy bonds.”  Ah, I see; thank you very much.  Should we care?  Perhaps.  Some feel this is a policy bound to end with rampant inflation.  Others feel it to be the hallmark of a society (and its currency) in decline.  Many of our trade partners see it as part of a larger, ongoing “currency war.”  What we can say for sure here at Atlas is that this drama being played on a global stage will ultimately be resolved in a way which draws all the players closer to a shared standard of living.

In the short run, not every country will most likely see this solution as a win.  On the other hand, as Keynes once said, “In the long run we will all be dead.”  Remember this, though, by allowing me to return to the childhood ditty with which I began these thoughts:  Ecstasy, ecstasy, ecstasy, ecstasy; existence is but an illusion.