Submitted by Michael Gipp of The World Complex [2] [2]
What Hath QE Wrought?
First off, let's see how our deflation indicator is playing out.
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The latest trend of rising gold and USDX is in its third month.
The last time we had a similar trend was in 2009. That ended with a massive blowout of QE. But a funny thing happened on the way to the bank. After four-and-a-half years, we wound up back where we started.
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The ineluctable march of deflation.
And for context, a look at the bigger picture.
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One lesson of all this is that if the system needs to deflate, the bankers and politicians who think they are in control can delay it, but not stop it. A little over four years later, we have picked up where we left off.
I would expect the central bankers of the world will try for another inflationary push at some point in the future. Maybe they will let deflation to run for a time to ratchet up the pain enough for the public to scream for more stimulus. I can't help but think that they decided to let deflation run for a bit just to chase out some of the 99.9% who were perhaps betting on continued inflation.
Deflation's the same in a relative way, but you're older;
Shorter of breath, and four years closer to death.
