That's not true on at least two key points. QE did not create inflation, because the proceeds of QE were locked up in deposits at the Fed or in Treasury securities and MBS that the Fed banks bought up with that money. That means it never leaked out into the real economy, except in the driving down of bond yields, which pushed yield seeking investors wholesale into stocks, pumping stocks up very high across the entire world. ZIRP had a similar effect.
The inflation that we have experienced has been in education, housing, and health care costs, which have seen VERY significant inflation, which has monkey hammered the middle class.
* Housing cost increases are directly correlated to both Fed actions and lack of supply creation in the industry. * Education costs rose as a direct result of Obama's disintermediation of the college loan industry by going to direct government guarantees, which destroyed the free market in interest rates and acted as gasoline on a fire for the educational loan market, driving up the ability of universities to raise prices, given massive loan capability through gov't loan guarantees.
* Health care cost increases were a direct result of Socialism in the form of Obamacare, which was mathematically not viable from the moment of the birth of the bill.
The reality is that I know a whole lot more about the transmission mechanism of the Fed's actions than you. You don't know much at all, which your post demonstrates amply for anyone trained in economics. The fact that you think modern money printing translates directly into inflation shows anyone educated in economics that you simply do not understand modern central banking conduits and levers. Don't feel bad, though. You are in good company. Most Americans have no clue just how bad the Fed is for the 99%. The elite want you to think the Fed is a positive force for Americans, but nothing could be further from the truth. They serve the 1% and always will. |
