Quantitative Easing is Just Legalized Counterfeiting

Quantitative easing (QE) is often portrayed as a sophisticated economic tool, but when you break it down, it's really just legalized counterfeiting. Both involve creating money out of thin air and injecting it into the economy. The only real difference? One is illegal, and the other is sanctioned by central banks. https://preview.redd.it/o8kan19npnpe1.png?width=1024&format=png&auto=webp&s=7f5586982eb7063d9ea1b11f3768d995afd6d45c A counterfeiter prints fake money and spends it, diluting the value of real money. QE does the same thing—central banks create new digital money and use it to buy assets like government bonds. This artificially inflates the money supply without increasing goods or services, which inevitably pushes up prices and reduces the purchasing power of existing money. Just like counterfeiters benefit by spending fake money before inflation catches up, the biggest winners of QE are banks and corporations. They get first access to newly created money, allowing them to invest in stocks and real estate before prices rise. Meanwhile, ordinary people are left dealing with higher costs and stagnant wages. On top of that, QE distorts the economy by fueling market bubbles. Stocks, housing, and other assets skyrocket in price, not because of real economic growth, but because of artificially cheap money. Eventually, the bubble bursts, leaving regular people to deal with the fallout. The only real difference between QE and counterfeiting is that one is legal. But legality doesn’t change reality—whether it's a criminal printing fake bills or a central bank injecting trillions into the economy, the result is the same: devalued money, rising prices, and an economy built on illusion. submitted by /u/XBThodler [link] [comments]

Mar 19, 2025 - 15:41
 0
Quantitative Easing is Just Legalized Counterfeiting
Quantitative Easing is Just Legalized Counterfeiting

Quantitative easing (QE) is often portrayed as a sophisticated economic tool, but when you break it down, it's really just legalized counterfeiting. Both involve creating money out of thin air and injecting it into the economy. The only real difference? One is illegal, and the other is sanctioned by central banks.

https://preview.redd.it/o8kan19npnpe1.png?width=1024&format=png&auto=webp&s=7f5586982eb7063d9ea1b11f3768d995afd6d45c

A counterfeiter prints fake money and spends it, diluting the value of real money. QE does the same thing—central banks create new digital money and use it to buy assets like government bonds. This artificially inflates the money supply without increasing goods or services, which inevitably pushes up prices and reduces the purchasing power of existing money.

Just like counterfeiters benefit by spending fake money before inflation catches up, the biggest winners of QE are banks and corporations. They get first access to newly created money, allowing them to invest in stocks and real estate before prices rise. Meanwhile, ordinary people are left dealing with higher costs and stagnant wages.

On top of that, QE distorts the economy by fueling market bubbles. Stocks, housing, and other assets skyrocket in price, not because of real economic growth, but because of artificially cheap money. Eventually, the bubble bursts, leaving regular people to deal with the fallout.

The only real difference between QE and counterfeiting is that one is legal. But legality doesn’t change reality—whether it's a criminal printing fake bills or a central bank injecting trillions into the economy, the result is the same: devalued money, rising prices, and an economy built on illusion.

submitted by /u/XBThodler
[link] [comments]