As a response to the economic crisis of 2008, the federal reserve, along with international banks, began injecting liquidity into the market in the form of QE. Now were at a point we must ask, can we stop?
If we dry up QE and strengthen our dollar, our exports will become less desireable, aka more expensive, resulting in a decline in exports. If we keep printing money under "QE Infinity" we risk domestic inflation. Whats worse? Seems we are stuck between a rock and a hard place here. Does this situation create enough risk that we feel compelled to protect our assets or isolate them from the potential bank note fallout? Might be a good idea to diversify your holdings to different currencies, crypto.
http://www.zerohedge.com/news/2017-07-05/socgen-are-we-just-prisoners-here-our-own-qe
I agree, it does seem like we're stuck between a rock and a hard place with regard to the competitiveness of our exports and managing inflation. However, I think that's always the case with monetary (or even mining) policy. It's the competing benefits and drawbacks of easy versus valuable money that result in a compromise. It certainly hasn't been handled perfectly over the last few decades, but I would disagree that this catch-22 was brought on by QE.
Just my two cents
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Thats true, I guess if were looking at it from a broader perspective its more accurate to say that QE further exacerbated an ongoing problem, mismanagement of the currency.
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