[expat_panama]

...only tool they have is the printing press/QE*, which is designed to create "inflation" in order to stop the deflationary cycle.

--and they did it, it seemed to work for a while, but now they're quitting and we're all watching the world's economy deflate, beginning now with negative interest rates.  The problem (imho) is that w/ all the printing the money supply hasn't made any serious moves.  Money's supposed to be created by econ activity and it's not there.  We especially see it in the fact that money-velocity has gone AWOL

[Zeneta]

...only tool they have is the printing press/QE*, which is designed to create "inflation" in order to stop the deflationary cycle.

--and they did it, it seemed to work for a while, but now they're quitting and we're all watching the world's economy deflate, beginning now with negative interest rates. The problem (imho) is that w/ all the printing the money supply hasn't made any serious moves. Money's supposed to be created by econ activity and it's not there. We especially see it in the fact that money-velocity has gone AWOL

------------------------------------

And after all their efforts we are back to where we started except....

Money's supposed to be created by econ activity and it's not there

This is Keynes and it is a complete failure.

There have been only a handful of truly revolutionary, technological breakthroughs over the past 115 years. When those breakthroughs have occurred the money flooded into them at breakneck speed. It will happen again, but the fact that it hasn't happened since the last "Breakthrough", the Internet, is somewhat surprising to me. Even the internet or the "World wide Web" was just an extension of the real breakthrough, that being the "integrated circuit".

The money "Created" by the FED is in the hands of the big banks and institutions and we are going to see an increased effort on the part of Governments around the world to confiscate this money since they believe they can spend it better than the private sector.

Keynes part II.

Fascism.

[1010RD]

Because the rational and the prudent expect prices to behave, all the bailing out punishes the prudent and the rational.

If the credit crises were allowed to play its course with FedGov and the Fed just guaranteeing the system, but not individual institutions, investments, or sectors, we’d be in a boom.