Citi On Why QE Isn't Working | ZeroHedge

Static and statist thinking follows that if the first Quantitative Easing (AKA QE) was a benefit to the economy, then the next and next and next ones would be even better and better. If they are so good, then why haven't we been doing this since the beginning of time. Actually, we have been doing these things, albeit in a small way with the effect of debasing all of these fiat currencies. But I digress. Now that the central planners at the Fed have engaged in QE3, why hasn't the economy been doing so much better? Trillions in additional high powered liquidity and profligate spending by the central planners at the central government has had what effect(s) on the economy now that we are 4 years past the government created housing crisis.....

If anything, low interest rates are increasingly part of the problem rather than the solution. Perversely, they may be turning the world's largest companies into capital distributors rather than investors.

Leave it to the government or governments everywhere to intervene in markets for specific reasons and then engage on mission creep over time where the economy is now supported by greater and greater levels of central government intervention.

So, what would happen if the American government balanced its budget and stopped monetizing the debt tomorrow. If its nothing, or better said, nothing bad, then lets do it now. Higher taxes, OK, Americans will suck it up and say lets do it! But everyone knows that there is not a serious speck in dust anywhere in the halls of government to do this since there is whole group of folks that have nothing invested in this except what they receive. I look forward to all of the fireworks particularly from the something for nothing crowd.

Citi On Why QE Isn't Working | ZeroHedge