QE works and It will continue to work if you understand the tool and the target of the tool. All those that so righteously declare that QE does not work are dead wrong and making public jerks of themselves among those that know.
It works alright, but employment and general economic activity are not the primary focus of this tool. The primary focus of QE is to prevent bankruptcy in financial entities and countries so far. It will be used to prevent state and pension fund bankruptcies. That is fact, not conversation.
I am not speculating that this will occur. I am telling you there is no other tool and like QE to infinity, before anyone noticed it arrived, is now focused on countries. I know it, not think it.
Those that converse or write both inside and outside of our community declaring QE failed and will fail again demonstrate zero knowledge of monetary science. QE has worked as it is designed to work, and will continue to do so as it adds new targets to prevent bankruptcy. The impact of QE will be a colossal impact, but it is not what the writers who aim at sensationalism even know about.
There is nothing sensational here. It is as simply a one plus one equals two.
Bernanke has succeeded so far in saving the financial world from bankruptcy. Now Bernanke and Draghi are in the business of saving countries from bankruptcy. It will work and that is why the wild bears on the euro are wrong. It will work. That is why the wild bulls on the dollar are wrong. Even the cartoon below is wrong.
Main Street’s economy did not get the QE treatment but rather Western banks and financial entities got it instead. Study history or relive it. It looks right now like we will certainly relive it.
Currency induced cost push inflation will grab the entire Western world. I do not think it. I know it. That is a form of hyperinflation
Gold is going to $3500 and beyond. $1775 is a game that will eventually be won. $1775 is not a magnet point.