Joe, my opinion is the FED (unknown to all at the time) had no intention to get the money to the man in the street. This seems to have played out in a way that is amazingly beneficial for banksters and the top end of town. They now have the money and the man in the street is dead poor and a debt slave and has no wiggle room.
I think the FED can just rinse and repeat over and over.
With no money in the hands of the main stream economy there is no chance of inflation there.... especially given the terrible labour markets world wide yielding no increase in wages. And as we all know there is massive asset inflation in the assets the the top end / banksters buy. Which is, of course, where the money went.
Who knows the real balance sheets of the banks. Are they so solid, they cannot be hurt. Imagine how rich the banks will be if we get a real deflation event in the main street, whilst the banks are all cashed up. Imagine having lots of cash (albeit fake fiat) and being able to force a deflationary event. Wow. You (the banksters) will be double rich. And the main street will be double debt slaves.
I grow tired of the few odd balls here who somehow refuse to acknowledge how this money benefitted the top and bypassed main street. If people do not actually acknowledge what is happening (happened), it is hard to discuss what the future may hold. From my point of view, what WILL happen is the same as what happened in the last few years. near ZIRP and QE in one form or another; and likely the calls for more govt debt may be followed; subprime was too easy to predict (lots of money owed to banks that cannot be repaid). Since we now have the banks cannot fail (any losses will be moved to the public purse) and the main street seemingly happy to be the boiling frog... surely this can continue a long time.
re POG... I was so positive on fundamentals, but I have seen the light; until there is a big social outrage (the boiling frog revolt) there is no way gold will be allowed to move much.
re China... they are messed up, but they can do the same as the US FED. Simply ease and lie and keep the bubbles going. I think so.
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