Yet it is the QE that is causing much of the trouble. If we had an improved tax and regulatory environment (i.e. pro-growth policies) then QE would not be so bad.
Instead, QE is like piling fuel on the fire. You know all that debt will be paid back in taxes, inflation or both. A wrong policy from the start isn’t going to make things better, at least not for main street.
QE is simply the mechanism for supplying liquidity demanded by the market (look at the velocity charts). The Fed is purchasing debt for sale in the market. They are not buying debt that wasn’t being issued anyway.
I would say that if, as you mention, the tax and regulatory environment were better, we wouldn’t need the QE to this extent. The QE has helped to partially offset the damage the tax and regulatory environment.
Q.E.++?
What is wrong with Q.E.
It worked just fine for Wiemar Germany, pre-Hitler.
It worked just fine for Zimbabwe.
It is working fine in Venezuela.
It should do just as well in the USSA.
What could possibly go wrong?
Need money?
Print it out of thin air and give it to the big, super-rich bankers to buy the DOW and thus prove the Economy is great because the DOW is 16,000+.
Duh?