Quote:Definition of 'Quantitative Easing'

<div style="font-size:15px;">An unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply. Quantitative easing increases the money supply by flooding financial institutions with capital in an effort to promote increased lending and liquidity. Quantitative easing is considered when short-term interest rates are at or approaching zero, and does not involve the printing of new banknotes.
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When you increase the supply of money, the value of the money already available is decreased. That's the laws of nature for anything, the more there is the less valuable it is. So while no "new money" is being "printed" you're still injecting Capital into the market place without any real exchange of goods, thus leading to more of the money on the market and devaluing the purchase power. 

 

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Like I said, inflation is at historically normal, or even below historical normal levels. If you really think there's going to be significant inflation you should be borrowing now to buy as much as you can, since, like I said, it would essentially be free money as the actual value of the money you borrowed decreases over time in spite of interest rates.

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