QE simply doesn't work , its a myth, a bit of Fed propaganda...

QE simply doesn't work , its a myth, a bit of Fed propaganda that the sheeple feed on. If you want I can show you where Bernanke introduced it in his academic work, right before the section on what he referred to as "cheap talk", this is where he makes statements about the economy that leads people to believe that inflation will occur in a deflationary crisis.

All QE does is buy distressed assets and take them off a financial institutions books so they can lend again. The news is that there is so much debt that these asset purchases make almost zero impact .

Discussions about forms of QE have been around since the last great depression, the consensus from Keynes, Schumpeter, Minsky and a bunch of others is that if fails because eventually the credit market becomes constipated with people who wont borrow and banks that cant find credit worthy borrowers. The QE fairies can visit the bank and provide reserves , but they just cant or wont lend it out.

The only thing that would work is fiscal stimulus, fiscal stimulus is where the government borrows the money and spends it on capital works. The trouble though is the political "will" in every case in history fails before the fiscal stimulus can take effect.

The people seeing the rising debt levels and the transfer of obligations from the banks to the citizens rise and up and stop the fiscal stimulus from occurring. We know this as austerity, which everyone now realizes has infected the world with shrinking tax revenues and GDP.

Bernanke is out of bullets but he will continues to talk up his abilities as long as the market allows him to do so.