QQQM - Why Central Bank Bond-Buying Isn't A Solution To The World's Debt Problem
- Despite QE frequently being described as "money printing," including by me, it is effectively an asset swap that lowers the average duration and interest rate on the government's debt.
- QE does not generate increased bank lending or economic growth, and in fact it has a number of economically disadvantages side effects.
- The Fed finds itself in a dilemma in which diminished economic growth will be the result of whatever choice it makes.
- In this situation, the stock market is profoundly disconnected from reality.
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Why Central Bank Bond-Buying Isn't A Solution To The World's Debt Problem