[quote=briansd1][quote=UCGal]
I read something a few weeks ago that made sense to me. With the fed doing the massive QE – which in theory should have an inflationary effect, why haven’t we seen massive inflation. The explanation I read was that the fed wasn’t *adding* to the currency, it was replacing the currency represented by the collapsed assets.
[/quote]
Yes, back during the boom, people were essentially monetizing their own assets by pledging them as collateral to obtain loans and spending the money into the economy.[/quote]
Brian: Which makes my point perfectly, thank you. Completely absent from this conversation is the topic of asset value, which the Fed, the ECB and the ruling cadre of the Communist Party of China would all like you to ignore, please and thank you.
