Anyway anybody with half a brain probably gets it by looking at this chart:
Of course when you purposefully deny the possibility that what the economic collapse next week bloggers tell you is wrong you might choose to ignore it.
Of course when you purposefully deny the possibility that what the economic collapse next week bloggers tell you is wrong you might choose to ignore it.
Lol, that article is a hoot. For instance:
Quote
Or, rather, all the money that's been created is sequestered from the actual economy and may as well not exist for most purposes.
That chart shows the monetary base expansion under TARP and QE1,2,3. The money is used to buy gov't bonds or other financial assets. That is the official claim from the Fed. Either the Fed is lying or the author is an idiot. If the author is correct, the Fed is lying. In this case, the money is probably parked in the banks waiting to cover a massive, anticipated run on bank accounts. Chances are, however, that the author is a moron and the money is simply being injected into the world economy at some unknown rate.
Even if the FED is lying and the author is an idiot the US doesn't appear to head into an area of hyperinflation.
And actually there is an article which explains what the FED actually think it is doing, it's too complicated for me but since you claim to know all about economics perhaps you get something out of it.
http://www.newyorkfed.org/research/current_issues/ci15-8.pdf
Inflation is inevitable once that money fully enters into circulation. Precisely where that money went and what it's being used for is not a matter of public knowledge. But you can bet that it won't just sit somewhere. All the goldbugs are saying is "They created a tremendous amount of money over a very short period and it will eventually be used. The question is when and how."
