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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 437.26+3.8%4:00 PM EST
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To: KyrosL who wrote (92864)7/25/2012 2:36:47 PM
From: carranza2  Read Replies (2) of 219550
 
The theory is appealing but the practice shows that QE has been counterproductive when the primary economic fact is a burst credit bubble. I think this is the result of the fact that that QE does nothing about excessive debt created during the bubble, which is being deleveraged as the various episodes of QE take place.

The dynamics of deleveraging IMO are much stronger that any QE; they have to go forward until they are spent. Then and only then will organic growth take place. As the studies, the facts and Austrian theory show, it takes a long period of low interest rates and low growth before deleveraging is completed. In other words, it's likely that deleveraging overwhelms any QE.
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