Easy to Understand Video Explaining Today's Quantitative Easing

A key reason why QE to Infinity must occur is the need for the Treasury to finance the budget deficit. This video explains this concept in terms understandable to financial and non-financial people. It is worth your time.

Jim

Capital that which existed before and after quantitative easing set the direction of long-term secular trends based on risk relative to reward. While today’s marginal or additional quantitative easing, better known as currency devaluation throughout the historical record, does not alter the direction these trends, it does influence their duration and magnitude. History serves to remind us that official centralized policies, such as quantitative easing, cannot alter long-term capital trends and cycles without jeopardizing their existence. The video tends to imply that centralized control rather than capital flows determines the direction of markets. While the types of government control have changed numerous times over the history of capitalism, they have all struggled to handle the direction of the flow of capital. It is the one unyielding constant of capitalism.

Eric