Though, I believe once the equities double from current value and finish their own parabolic move, a deflationary wave will occur. This deflation will value the cash USD more than anything else. It will be cash that everyone will want.....not credit, not loans...cash.
When the market crashes like shown below, all those who have margined everything to keep on buying will suddenly face margin calls. These poor souls will sell any asset they ahve to raise what? To raise cash to meet the margin calls. The same thing happened for housing crisis.
So, during these times hard cash is best or Treasury Bills which has the shortest duration times. Eventhough the Fed has lots of debt, it can still service 100x it current level of debt. The Treasury will be solvent for quite a while.
That's why the Fed is deathly of deflation and prefers inflation. Hence the QE1,3,4...and if they need to Fed wil QE to 1,000x to keep deflation out.
Wouldn't QE to that level cause hyper inflation and the collapse of USD, or am I misunderstanding the whole thing?
If there is no deflationary pressure..yes. But with Deflationary pressure, the hyperinflation is becomes selective like it was with QE on food items.
Deflation is more powerful than the Fed and one of that category is coming not too distant from now.
We ....eh quantities easing.... the hidden agande good ole Bernanks helicopter USD dollars ha ha .... bernanke and merkle quite the romantic 5th level affair. We are in the midst of WW3 the last and shortest of the three... can you see it
Thank you Kindly