November 4, 2014

This is What Could Trigger QE4

Without credit growth, there isn't enough liquidity to finance the ponzi scheme called an economy. That's where budget deficits financed by money printing come in.

Take a look at the graph below - it is clear that year-over-year credit growth remains far below historical norms. Unless credit growth magically picks up, the recovery is no more sustainable than it was in 2010 and we will see a return of deflationary forces. This will be the Fed's cue to further inflate.