Submitted by Deepcaster:
“I don’t know when it’s going to end. But my guess is it’s going to end very badly. And it’s going to end very badly because, again, when you get the biggest price in the world, interest rates being manipulated, you get a mis-allocation of resources and this is going to end in one of two ways: with a mal-investment bust which we got in 07-08 […] Or it could end with just monetizing the debt and ‘off we go’ inflation. So that’s a very binary outcome. They’re both bad.”
The Fed’s and other Central Banks’ Money Printing is surely facilitating Serious Malinvestment, which almost inevitably leads to a Bust i.e., to Economic Stagnation or even Depression.
But that Money Printing is also already leading to Inflation. Result: Stagflation is impending, or, more likely, Hyperstagflation. [Read more...]