Timber I've only had a quick scan of this thread so apologies if these points have already been covered. I think its clear that QE is financed from debt and inflation has been understated since greenspan changed the CPI rules in the 80s but that's not the point i want to make. Yes QE is different to Weimar money printing but that is a moot point.
The Fed is now actively enabling congress to live on borrowed time. Until the us gov address fiscal policies and productivity issues the Fed is helping to inflate the debt bubble to keep the dollar and equities bubbles afloat. QE is clearly not going in to capital or construction expenditure it is going into equites speculation, share buybacks and MandAs. Take the sinking domestic growth and overheated PE as evidence. The music will stop eventually and the US will have to address fiscal and productivity issues. Where do you imagine what wealth that survives will gravitate then?
The QE wheels are keeping everything spinning for now but the smart player has an eye not on where the ball is now but where it is going to be.
