The idea behind QE is that the Fed crowd's out money that would otherwise have been buying Treasuries at auction, forcing that money into other assets in order to raise the prices of those other asset classes. So far, the strategy has worked beautifully. Or so it seems.
QE is merely the LAST KICK of the "kick the can down the road" strategy that our government has employed since the Federal Government's actuaries made clear the absolute certainty of what must occur with the government's various social programs. When I say "social programs" I do not mean ONLY Social Security & Medicare. I mean Medicaid, Fannie Mae, Freddie Mac, Food Stamps, HEAT, HEAP, and the rest of the alphabet soup now supporting the staggering weight of the American people.
(Yes, the AMERICAN PEOPLE. Not just poor people, or Black People, or Hispanic People, or Native Americans, or Christians, or Muslims, or Jews... EVERYBODY. Walmart benefits from SNAP (food stamps) at least as much as those individuals receiving this "benefit" do. The primary vehicle supporting this ongoing ponzi scheme of social programs is the G^% D*&& F&^%*ing CORPORATIONS. And corporate securities, directly or indirectly (yes, real estate is not a "corporate security"... or is it? It is funded by the banking system, which is part of the corporate system... and without bank financing, there would be no financial value to real estate (neither barter value nor personal production value are financial value)) make up nearly 100% what we American's define as "wealth"... and as we all know WEALTH = POLITICAL POWER.)
Our Federal Government has painted itself into a terrible corner (or it may have been painted there by phenomenon... or momentum...). The very programs designed to "ease poverty" (and boy could I have some fun going through the machinations of trying to define that) have succeeded in increasing the number of "poor", and we have reached the terminal apogee of that orbital exponential function... the orbit of the apogee I speak of was expanded by the Zeitgeist onto the balance sheets of every government, corporation, and individual until the total debt within the system could no longer be supported by the production within the system. And how, exactly, did that come about?
Well, there are the facts that can be supported by thoughtful analysis, and there are the opinions of the biased (and of course WE ARE ALL BIASED, including me... but we overcome that bias through the aforementioned thoughtful analysis).
I assert that it is our Federal Government that is completely dependent upon the Corporate system, a Corporate system which breeds such terrible inequalities in wealth and political power and stratify's our society as to be unsupportable - except that without it all of the social programs that have created this behemoth would dissolve before our eyes with all of that outcome's attendant effects. Think about that for a moment. (And, please, teenager's of ALL AGES, spare me the lecture about the military budget... it is agreed that the military budget is out of bounds and must be cut deeply... but even a cursory review of the budgets of the various social programs would reveal that the these dwarf even the military's absurd budget.)
The American people have come to blame "the Politicians" when the blame is ours - and ours ALONE. We, and we alone, have tolerated a political process whereby laws are enacted even though NONE OF OUR LAW MAKERS HAVE READ THE LAW THEY ARE VOTING ON. Ergo, we have left the legislation process in the hands of the "money" - the corporate, union, and special interest lobbyists (I despise the Left's disingenuous attack on the corporate lobbyists... when their special interest groups - feminists/abortionists, NAACP, NEA, et al puke... dominate) - "money" that derives its support from the Corporate System, a Corporate system that the Federal Government is COMPLETELY reliant upon for its continued existence.
"Cluster F**k" only begins to describe the situation.
And then you have the various "True Believers" of the Left and Right trying to make political hay out of this CF and doing everything within their power to perpetuate the ongoing control of the system by the 2H1P.
In the end, it will be Fascism or Libertarianism. Getting there could get very rough. The solution is not Liberalism or Conservatism, choosing Left or Right - they are the problem, and they need to go.
More to come.