Monday, May 6, 2013

MONEY IN QE LIQUIDITY TRAP...CAN'T LEAVE WALL STREET...

FIRST PROBLEM:  QE IS CAUSING INFLATION...  ONLY ITS IN STOCK AND ASSET PRICES...

GLOBALISM IS SURPRESSING WAGES IN THE US...AS JOBS MOVE TO ASIA...THAT IS WHY THERE IS NO WAGE AND PRICE INFLATION...

LOWER WAGES AND CHEAP GOODS FROM ASIA...ALLOW QE TO CONTINUE...WITH ONLY ASSET PRICES RISING...

THE ECONOMY IS NOT THEREFORE BENEFITING FROM QE...  BUT CHINA AND THE ASIA ECONOMIES ARE USING CHEAP US DOLLARS TO FINANCE EVER MORE BUBBLE STYLE BUILDING OF OVER CAPACITY...

THE VERY FACT THAT QE IS NOT HELPING THE ECONOMY OR CAUSING INFLATION IN THE REAL ECONOMY IS PROOF THAT IT IS NOT WORKING...

TO CONTINUE QE STRICTLY FOR ASSET INFLATION IS THE WORST POSSIBLE POLICY...

THE US ECONOMY IS SO DISFUNCTIONAL...AND SUCH A FICTION THAT ONLY ASSET PRICES RESPOND TO MONEY PRINTING...  THE REST OF THE US ECONOMY IS ESSENTIALLY A ZOMBIE...ITS DEAD...DOA...IT WILL NOT INFLATE UNTIL THE LQUIDITY TRAP IS BROKEN...  AND THAT WILL NOT HAPPEN UNTIL MASSIVE DISTORTIONS HAPPEN IN THE ASSET PRICE ECONOMY ON WALL STREET...

AND THAT WILL BE THE "WIEMAR EVENT"...!