[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

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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.

[expat_panama]

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

This is Keynes and it is a complete failure...   ...money "Created" by the FED is in the hands of the big banks...

A nice thing about the U.S. economy is that the important amounts and receipts are public record; we can look at the money supply, see where the money came from and see where it went, but the impression I'm getting now is that it wouldn't make any difference to our conversation.  In the mean time I need to thank you for inspiring me to look again at the numbers:

Total money supply is the blue line on the left scale, and the Fed money printing is the green on the right.  What we got is that back in Jan '13 the economy was stalling so the Fed made money to buy T-bills on the open market.  It was just in time, for over a year the private sector had dried up and almost all money supply growth was from the Fed.  Half a year ago the Fed wound down and low'n'behold we're now creating money w/o the Fed's help.  That's good!  I mean, for the economy, not our conversation.