Friday, February 7, 2014

Five Years of QE

Central bank "unprecedented measures" around the world have ultimately been nothing than simple debt monetization schemes that ultimately bring inflation, and often hyperinflation and depression that impoverishing and destroys the working class in countries around the world. Those are called "consequences".

This article explores when that might occur. It's likely to occur first in Japan. Japan's government doubled down this week on its own debt roulette, causing the US stock market to leap 180+ points yesterday, based solely upon Japan's central bank money-printing bet.

It was five years ago this month that the Fed began its own debt monetization scheme, called quantitative easing (QE). Bubbles Bernanke himself referred to this scheme using the phrase "unprecedented measures". But if you think about it, "unprecedented" also means "untested". It means they don't know the long-term consequences. But they should. History shows us again and again the catastrophic consequences of monetizing debt.