Buffett's Latest NYT Op-Ed: The Greenback Effect [View article]
Zach,
M3, or bank credit, is still falling off a cliff. Wealth losses are well over $10 trillion. Banks are holding the cash for future commercial loan losses, and are only deploying capital for trading.
The "money being printed" so far is 1/5th of money, or wealth, lost. The world is just now realizing that non-stimulus growth hinges on the American consumer coming back to the trough. Good luck with that.
Inflation will not happen until the bank reserves are leveraged to provide consumer loans, and consumers begin to compete for goods with their "excess dollars".
Buffett's Latest NYT Op-Ed: The Greenback Effect [View article]
M3, or bank credit, is still falling off a cliff. Wealth losses are well over $10 trillion. Banks are holding the cash for future commercial loan losses, and are only deploying capital for trading.
The "money being printed" so far is 1/5th of money, or wealth, lost. The world is just now realizing that non-stimulus growth hinges on the American consumer coming back to the trough. Good luck with that.
Inflation will not happen until the bank reserves are leveraged to provide consumer loans, and consumers begin to compete for goods with their "excess dollars".