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April 03, 2014, 07:46:59 PM |
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QE could be stopped, but money production (in the form of credit) could continue in the chartered fractional reserve banks (while lower reserve requirements), using unused and already "permitted" mechanisms, new bonds in the half private market (the postal service f.ex), private bonds with explicit government insurance, or private bonds with implicit government insurance, sour loans can be parked in bad banks (in stead of being cleared).
In addition, all the worlds fiat systems seem to cooperate, always keeping the peripheral currencies within a band of variation from the dollar, so other countries can do the money printing on behalf of the Fed.
Lots of possibilities. The point is to hide the real money production, because the market is governed not only by inflation, but inflation expectation. When all fails, start a war.
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