QE and the Paradox of Thrift
The goal of the Federal Reserve's quantitative easing program is to cause inflation.
To facilitate that, the Fed first must discover the price point for debt capital that attracts borrowers to borrow again. The process requires steadily lowering the cost of debt capital. Until the process successfully causes an increase in borrowing, lending, consuming and investing, the result of decreasing the cost of capital is deflationary, not inflationary....462 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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