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by dageshi 2126 days ago
QE isn't really the same as direct money printing. Most of the money seems to find its way into financial markets rather than directly into peoples pockets. So people will see their retirement accounts or stock holdings doing OK and maybe even cash some in to spend, or at a minimum make them feel comfortable with their current level of expenditure.

But we've had QE for over a decade in various amounts and it didn't lead to inflation, unless there's direct monetisation (the fed prints money and gives it to the government to spend in an unlimited fashion) I'm not sure why the situation would change.

2 comments

Inflation has been most focused in assets and investments. The government has gone at great lengths not to count these in their inflation measures, but all that QE going into stocks and housing bidding wars can’t be a good thing in the long term.
Housing is included in CPI.
"Didnt lead to inflation"

You are kidding, right?

have you seen what is happening in healthcare? Do you have kids in college? Have you tried to buy a residence in a large urban area like seattle, nyc, miami? Have seen what is happening to food package sizes ij most american supermarkets? Do you know the increasing rate of us retirees is no longer flocking to fl, but abroad? Do you realize that it is no longer possible for a working class family to sustain itself with 1 breadwinner? Do you wonder why?

Just because tech , internet, and freight efficiencies are keeping in check in some sectors of the economy doesnt mean there is no inflation.

We are heading into the lost decades of japan

Welcome to salaryman life , where you live in a shoebox amd expect no asset accumulation for the rest of your life