Thursday, October 28, 2010
And QE does NOT cause inflation
Thus far, the only thing QE appears to do is drive asset prices higher without being supported by any underlying fundamental change. This is largely due to the psychological impact of QE and the FALSEHOOD that QE = â€œmoney printingâ€. " For the those who rush uninformed to refer to money printing read the article and the comments. There is an intresting discussion as to what central banks are up to (Bernanke in particular) and a suggestion that he is now close to impotent. There will be no drops of money from helicopters because that aint even within his powers.