rubysglory wrote:QE falsely provides liquidity within the market. It could be argued that this helps control the 'cost' of money and keep inflation under control. The real issue begins if the US wakes up one morning and realises they can not pay there debt, the cost of money increases in line with the risk of default and the inflation genie is unleashed.
rg
QE has failed, but it's just done a good job of protecting (nominal) asset prices for the rich while economies burn.
The money didn't go into stimulating the real economy, but rather into stock markets, emerging markets and commodities - fuelling inflation through increased import prices (already rising because of the trashed $/£).
If QE was necessary the new money should have been spent into existence by governments on infrastructure programs.
Interesting that atm US 10 year treasuries yield negative 1.48 percent after accounting for 3.6% CPI - that shows the level of confidence in the real economy... investors are willing to lose money rather than risk their capital. I guess you can't open a super saver a/c with billions!