Is government of if India really interested in containing the price rise or inflation?

Why do people fear quantitative easing will create uncontrolled inflation?

• The concept of and implementation of the FED's Quantitative Easing is feared, disparaged, mocked and widely abused in the public arena. Why is not touted as a great policy instrument, a 21st century fiscal tool, low inflation, controlled growth, rising assets prices, job creation, etc ... The feared results such as rising inflation, lower stock prices, economic recession, USD devaluation, USD losing reserve currencies status, etc ... have not happened. This whole possible financial nightmare that was going to be created by Quantitative Easing has proved to be a ghost. http://business.time.com/2013/09/18/taper-tantrums-3-myths-about-quantitative-easing/ 1. Quantitative Easing is printing money: Politicians, journalists and market participants http://www.telegraph.co.uk/finance/comment/jeremy-warner/10313774/The-earthquake-begins-as-Fed-prepares-to-switch-off-the-printing-press.html to quantitative easing as “printing money.” This is because when the Fed buys bonds from banks it does so by crediting those banks’ accounts at the Fed with reserves that didn’t exist before. But it’s misleading to call this process “money printing” because it doesn’t actually do anything to increase the amount of money in circulation. In fact, in our monetary system, most money is created by private banks and not the Federal Reserve. When a bank lends you money on your credit card, that’s “printing” money. When the government buys bonds from banks, it merely raises the price of that particular type of bond and lowers the interest rate. Lower interest rates might encourage http://topics.time.com/consumers/ to take out loans, but it won’t actually lead to more money in the system unless banks create money through making loans. And banks won’t do that unless they identify profitable lending opportunities. 2. Quantitative Easing will eventually lead to inflation: For this reason the fears that quantitative easing will eventually lead to runaway inflation are unfounded. If the government literally began printing money and started mailing out new $100 bills to citizens, that would lead to price inflation. But quantitative easing isn’t the equivalent of mailing out $100 bills — it’s merely the managing of long-term interest rates much in the same way the Fed always has managed short-term interest rates. This is not to say that Fed policy can’t ever lead to inflation — keeping interest rates too low for too long can encourage the sort of spending that would cause prices to rise too quickly. But the idea that interest rates are too low right now doesn’t make a lot of sense given the large amount of slack in the economy as shown by high unemployment and stagnant wage growth. 3. Quantitative Easing is responsible for recent stock market highs: This also means that those who argue that recent stock market highs are the result of QE are wrong. Fed bond buying will cause bond prices to be higher and interest rates to be lower, and this will encourage investors to choose stocks over bonds at the margin.  But no amount of federal bond buying is going to cause a particular stock to be a good buy if an investor doesn’t think that stock will provide a return. QE may boost profits by reducing the interest rates firms have to pay on their debt, but it’s not going to create profitable enterprises out of this air. A much more plausible reason for record stock prices is that http://www.businessinsider.com/corporate-profits-just-hit-an-all-time-high-wages-just-hit-an-all-time-low-2012-6

• Answer:

  Inflation takes some time to leak into the daily commodities market from the asset market of stocks, bonds and real estates. I don't like QE because it lowers the value of my saving, which I earned with my labour. Basically, that is stealing. When you hold a dollar bill saying In God We Trust, you are not really trusting the god. You are trusting the Federal Reserve that they will not steal its value from you. QE is basically an abuse of that trust on a massive scale.