Quote Originally Posted by Kirkland Laing View Post
Quote Originally Posted by Reginald Perrin View Post
but I guess when you look at where the money comes from it spins around in the same circles, so it isn't such a waste. Plus they can always print some more and give it to the banks
About three or four months ago you discovered the existence of fractionated reserve banking. To say your knowledge of where money comes from is at a Janet and John level is an insult to Janet and John books and the preschoolers who read them.

The Fed recently ended QE. Why aren't we currently seeing skyrocketing bond yields, hyperinflation and so on, hmmm?


Not currently happening. Why not?
As a prodigious, intelligent and successful man of the world (ice cream marketing, greatest seller of useless products etc), fractional reserve banking is something I have known about for many years. In certain nations it has become more than fractional reserve banking with infinite re-hypothecation meaning in essence that the money is emerging from a complete vacuum. The banks have nothing to back up their cooked and rather scruffy books beyond a wave of frauds and manipulations.

The Fed may have ended the latest round of money printing (fraud), but the scheme is a global one and the buck has merely been passed onto Japan. The reason we are not seeing hyper inflation is because the Feds printed money is being handed directly to the banks (almost for free) and they are holding onto it because, as I mentioned before, these institutions are insolvent. This isn't rocket science. Unless money actually gets passed on to the real economy there will be no significant inflation. All the inflation is in stocks and asset prices. In the real world wages are falling and continue to fall.

I hope this service has been of some use to you and I really appreciate the picture of those lovely little aristocrats.