America has marginalized the productive sectors often identified as labor. Most of us are living pay check to pay check because there is no lawful system regulating 'good business'. This in turn allows the top earners to supplement their incomes by building asset islands on the backs of those they hire at ever decreasing rates. Their assets being over valued. provision them with flipping incomes... and increased liquidity outside of taxable income. This game has been played for years.... Banks are left holding the lower income earners limited resources and often failing credit.
So the Banks are now heading for negative interest rates to supplement their portfoolio's (Spelling correct) On the downside.. The Federal Government also insures them for loss and thus they pay trillions in default payments... Putting the taxation system into a spiral.... Now even the Federal Government is looking towards drugs to supplement their losses... at the behest of President Obama and George Soros... To leaders with amoral views and no limits to their own investments for Power and Greed.... Congress is broken in the middle with partisanship leading our Country towards complete failure. I doubt anyone with a voice will be allowed to speak the truth any longer... The censors will likely veto even this message... But heck it won't be the first one I have written which will never see the light od day.... QE is an inflationary policy. This is not a matter of debate. Lowering interest rates and increasing the monetary supply always, 100% of the time, creates inflationary pressure. Since I'm feeling bored at work;), I'll expand. You observed lower inflation (not deflation) because the inflationary pressure generated by massive QE on the US Dollar was weaker than global fear during the great recession. The idea is that people and governments worldwide were so fearful that they decided they would rather park their money with the strongest government on earth (US Bonds) for slightly negative real ROI, than invest anywhere else, even though much higher returns were to be had. The EU will probably see some inflation out of QE, but the Euro, like the dollar, is also seen as a global safe haven, so I doubt it will be runaway. No one really knows what will actually happen in the future.
And that's what I'd like to emphasize. No one really knows what will happen in the future, so it's important not to look at the pleasantly surprising low inflationary environment that recently correlated with QE in the USA and extrapolate that QE won't cause inflation in the future.
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