If you ever wondered about Quantitative Easing, how it works, and how it affects us, just watch this 7-minute video: Quantitative Easing Explained in under 7 minutes in a way anyone can understand.

My favorite quotes:

“Why do they call it quantitative easing, why don’t they just call it printing money?”
“Because printing money is the last refuge of failed economic empires and Banana Republics, and the Fed doesn’t want to admit this is their only idea.”

“Because they say we have the deflation and the deflation is very bad.”
“What is the deflation?”
“The deflation is when prices of the things we buy go down.”
“Isn’t that good. Doesn’t it mean people can buy more of the stuff?”
“Yes, but the Fed said this is bad!”

“The only thing that I can see that is deflating is the Fed’s credibility.”
“Did they have a lot of credibility to start with?”
“No…”
“Because the Fed has been wrong about every major economic development in the past 20 years.”

“So the Goldman Sachs can front run the Fed and give them the worst possible price on the Treasury Bonds?”
“Yes!”

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