Brown Motion

QE can mean many things to many people. Mostly in today's context it has nothing to do with the Queen or the mighty ship that sailed the Atlantic. It is an economic term to qualify mumbo jumbo that large governments use to manipulate money supply. However, the QuEasy factor can be introduced both on the ship as with the monetary waves. That right there is more mumbo than the largest jumbo can handle. When faced with sluggish economies that are over their head in debt and people are not spending (because they are in debt) the central bank uses what it calls levers at its disposal (wonder why anyone will use something that is disposed) to put the nitrous in the engine. Sort of a turbo boost. It starts buying long term securities and bonds by printing money. Artifically creating a large money supply drives cost of borrowing down and is assumed to juice growth. Still not clear what the Easing is and how Quantitative it gets. Especially when other broke nations are talking ab...