“It’s called “Deflation” and it’s a Bitch.
Central banks around the world know it and are using the only mechanism they have to fight it.
That mechanism is to create “Inflation” by printing money via QE* in order to boost “asset prices” that “may/should/could” be used to secure capital for investment.
I am not sure that is the only way to fight it. I could be wrong here, but...
We have extreme regulations and taxes that are a huge boat anchor on businesses and people. It seems to me that if the governments were to remove these boat anchor regulations and taxes that are weighing down businesses and people, then the economy would really start to take off and the businesses, people, and the economies would really grow.
With QE*, we have just exacerbated the tax problem, making the boat anchor much worse on businesses and people.
If the removing of the regulations and taxes had started in 2008, I believe we would be having a robust economy now, and not still mired in a depression that is much worse than that one started in 1929.
I agree.
And I also agree that the Fed’s QE* was the right thing to do.
They were/are buying time for innovation to take hold but without the tax and regulatory reforms their efforts have only created a different asset bubble.
We're waiting.......
http://www.freerepublic.com/focus/news/3326121/posts?page=47#47