Quote:The problem comes when QE stops, you can't use pretend money to buy securities forever without consequences. 

 

All that happens when QE stops is that interest rates eventually go up because the money supply will come from investors rather than investment banks, but that's not unusual. Rates are historically low right now, but the real problem is that the demand for money is low, not because of inflation, but because of the economics of the economy being run backward. Everything that Reagan and Bush/Clinton implemented needs to be rescinded. Free trade needs to go, taxes need to be raised, and Taft-Hartley needs to be repealed.

---