That’s the verdict from one of the luminaries of the economics blogs, Yves Smith.
She’s expecting the unwinding of it all fairly soon. A stock market crash, blah blah.
I don’t know. When it comes to timing I’m no sage. I tend to be so far ahead of the curve that even if I had funds to invest I wouldn’t profit because no one can wait that long. Still, as important and prescient as Yves’ little blog post there is, she’s not saying anything I haven’t already been saying for years. The ultimate failure of QE has never been a mystery to me.
This post was from April of this year. I noted the stagnating effect of a perpetually low interest rate environment – the environment QE is designed to maintain – in a post over a year and a half ago. And again here. And you should read this one. And this one. And, well, go ahead.
Japan has been QE-ing for two decades. There’s no end in sight, and it’s accomplishing nothing except, perhaps, delaying things. I suppose that is the point or the goal, or whatever. By that metric it’s something of a success. Like I said, two decades.
The “velocity” of money is at a 60 year low, Yves tells us. Sooner or later it seizes up, right?
Your guess is as good as mine.