Comments by "Frederick Miles" (@frederickmiles8815) on "maneco64" channel.

  1. Before debt based, commodity based (gold, silver) had the same root issue - governments lie...human beings lie and take the easy way out. QE and the insane behavior to avoid destruction of bad debt (a depression) is the same as past governments watering down the amount of gold or silver in their vaults or in your hands. Both examples reflect bad governments who avoid decisions via smoke and mirrors; games that just make the pain that much more worse.
    1
  2. Inflation will be transitory and will cause a massive liquidity crunch - without QE. With QE the global economy with turn into Japan. You are correct this system is based on debt notes, not money - hence the increased liquidity that both leads to massive economic growth and innovation and at the same time massive, massive asset bubbles in the financial economy - its a trade off. You cannot have a digital economy with metal based money - however digital currency works will with the fractional reserve banking model. The biggest pain point we have is due to the Fed's and elected officials of either party not understanding monetary and fiscal marco policy - they just understand pieces of mico-economics. Combine this knowledge gap with an unwillingness to deal with pain - like Volcker die - creates paper handed approach where QE sucks liquidity (debt) from the system creating a liquidity trap.
    1