RE: The problem i
RE: The problem is that the de-leveraging is enurmoos and the money multiplier is currently running at 0. Banks are increasing reserves, decreasing lending and using billions to pay themselves instead of repair their balance sheet. If we can magically wait and it all fixes itself you might see high inflation when that money floods out. However, nothing has changed at all in the system except that the banks are now zombies. Continued deflation is in the cards in this environment. Rate this comment: 0 0
Last edited by Kate; 04-18-2014 at 10:14 PM.