Hi All Been wondering why, given all the "money printing" (or is that electronic money creation), why there is no real inflation being seen My question is, where is all this money, who owns it and when will it flow into the everyday market eg price of an egg or your wage? Cheers Alfie
1)Well the money is only given to certain ppls. Those certain ppl use it to cause inflation in certain areas S&P500 and APPL etc... 2)Well the money is only given to certain ppls and those certain ppls give it straight back.
One thing I learnded from Pirocco's prolix posts is that a lot of the "money" isn't actually being spent but is being held in the banks reserves which was supposed to encourage them to start lending again. Which it didn't. What is being spent is pumping up the stockmarket and as usual, filling the pockets of the pecunious 1%.
Personally, I think the cheap money (Money that can be aquired for 0% interest rate in the USA) is being used by companies to pay down their debt. By doing so their books look good but tyhey are't actually improving productivity. The CEO may look good and the books may look ok, but................. For the every day guy...Food and energy has risen! For the average bloke, with money in the bank, who gets ZEROE interest, his nest egg is being eroded away. For the average bloke, who invests in the stock market, who borrows money at cheap rates, beyond his capacity to repay, is going to get smashed when the market corrects. The Price Earning ratios are out-of-wack! Once QE is stopped or reduced the market will collapse and then you'll see many, many people who lose their life savings. :| H
