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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 386.87-0.1%Dec 3 4:00 PM EST

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To: THE ANT who wrote (155360)3/27/2020 1:46:41 AM
From: sense1 Recommendation

Recommended By
Pogeu Mahone

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It will be interesting to see how much $ it takes just to end the QE driven deflation and get us back on a track where money that is being printed actually makes it to the market place.

Thus far, they're pretty significantly below what they think they need...

And that's still well below limits where the effort made begins causing other stresses...

I think that's grossly in error... because they don't understand that QE (as implemented) IS deflationary...

So, I think they're computing how much money to throw at the problem... based on how much QE it would take to "have the same effect"... which can't be calculated when it isn't to be channelized into the same <pockets> from which it generates no real liquidity... and generates no velocity in the market... but actually reduces it.

Just last week the Fed FINALLY figured out all the money given banks as "Repo"... was having no effect... because the banks weren't using it as the Fed assumed they would... so it wasn't generating liquidity... but was making the problem worse by re-enforcing the OPPOSITE behavior as expected.

Because <some> of the money that will begin to be flung now... is not so constrained... it will have relatively greater impact from relatively fewer dollars... as should happen when they''re applied in a way that actually works in addressing the problem... by short-circuiting the banks ability to "collect the free money... and then sit on the money".

Add to that... no worse time to throw money at people is possible... as doing so now will have them use it to chase after goods that are no longer that amply supplied... There will be more money than there are things to buy with it.

The same supply chain disruptions we're talking about in relation to silver and its pricing... will apply to many other things... all the more when you put the identical stressors on their supply chains.

And, of course... how many will use a good bit of that $1200... to bid up silver prices ?

Will it take $10 trillion to generate inflation ? I don't think so...

What will require $10 trillion... is solving the STILL GROWING problem with a lack of liquidity in the banking system...

But, that's a problem that will grow to $20 trillion by the end of the year...

We are going to get inflation... and a rising dollar...

All of that is still a discussion takes place in a bubble... that ignores the derivatives problem...

I don't think anyone actually knows how big that problem is...

I think the widely accepted guess... that it is around $243 trillion... is probably a low ball.

The deflationary force being generated... is like gravity...
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