Why Didn’t Quantitative Easing Lead to Hyperinflation?
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Why Didn’t Quantitative Easing Lead to Hyperinflation?
epeakin
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Where did the QE go?
Not to the people that spend it on the basket of goods that make up the CPI therefore, QE with no “Inflation”.
You might find that share prices and housing have kept going up up up.
As always fake news propaganda by media.
Just look at asset prices. Through the roof. The same govt that tells u qe doesn’t cause inflation also calculates inflation. LOL
If qe did not cause inflation why is the wealth gap the widest in history today?
Asset prices are making insane new ATH while the economy has been suffering from shut downs that last months. Some businesses went bankrupt and will never return. That might not be the kind of inflation that the average joe feels, but it is inflation. Perhaps it is just the cantillon effect at work and average joe inflation will hit soon.
Because as long as the coyote doesn’t look down, he can continue to run after going off the cliff. Theoretically he could continue forever.
why should it?
Because, “deflation, then inflation”.
Volume!
Catch 22
>The answer is that banks and financial institutions hoarded the money in order to shore up their own balance sheets and regain profitability. Banks still had bad loans and toxic assets on their balance sheets as a result of the housing bubble burst and its aftershocks. The extra cash on hand made their financial picture look a whole lot better.
So it was another bailout for the banks. Wonderful.
It did create hyper inflation. Just not on items included in the CPI. Look at the prices of the following:
Homes
Health care
Retirement (stocks and bonds)
Luxury goods
Why? Because most of the money went to the already wealthy and these are the things they buy 🎤
It’s true but no one is talking about it.
Bitcoin?
uh, why the fuck are boomer mcmansions continuing to go up by 10% per year even while they continue to rot and maintenance costs go up, which means the price should be going down?
why is the stock market going up even as the economy is in shambles?