When Money Printing Runs Wild

by Clif Droke, Gold Strategies Review
Gold Seek

Since the advent of the quantitative easing (QE), the Fed’s unprecedented attempt at reversing the impact of the credit crisis, many long-held beliefs and assumptions have been demolished. One of the most sacred assumptions on the part of investors and economists alike is that central bank money printing always eventually leads to inflation. Yet six years have passed since the Fed first embarked on its historic attempt at reversing the effects of the credit crash and alas, no signs of inflation are on the horizon.

Quantitative easing has increased the stock of money in economies of the U.S., the U.K. and Japan by nearly $4 trillion in recent years. The success of this coordinated monetary policy response to global deflation was an undeniable success; since 2009 the U.S. economy has been in recovery mode while other major economies have had varying degrees of recovery.

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