Sunday, August 07, 2016

Financial System Awash With Liquidity
That Is Not Reaching The People 
In The Real Economy
"What we may be seeing here is a declining 'bang for the buck' or 'the law of diminishing returns' for the massive amounts of liquidity which the Fed has been selectively applying to the financial system using quantitative easing. How can this be happening? Does adding even more quantitative easing work? Work for whom? The 'recoveries' or sparks of real economic activity are growing fainter, and shorter, while the subsequent declines are continuing in length and depth. One can hardly see the 'jumps' in velocity between the long plunges driven by helicopter drops from the Fed to the one percent, leaving the real economy and the broader public further and further behind. At what point does the fallacy of endless money printing without consequence begin to 'bite?' One might fear that the Fed is continuing to add fuel into and around a vehicle that is stuck in a ditch and wrapped around a telephone pole. And all the elite financiers and their sock puppet politicians can seemingly do is to keep pouring on the gas."
link here to the commentary

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