It would certainly be a game changer. Yes, I'm aware.
US printed approximately double the money they had in the system in 2009, but has the gold price doubled?
Has AUD/USD doubled in price? (USD went down in the past year around 10-15% on the index)
Most of it was turned into loans via the banking system...much of that went into the market - clearly as we can see the slowdown now QE has stopped. The actual bonds the fed bought aren't even on the market yet.
There's only so much creative accounting that can be done for so long.
Regarding picture - I circled where the fed
merely slowed down bond buying and look at velocity when that happened.
Including the very end you can see velocity picking up last quarter. We'll see what happens but I'm betting we're in for a wild ride one way or another. When that velocity picks up with all that money in the system - kiss it all goodbye.
All IMO.
