The problem is, the current money supply increase of $85B a month is not a moderate amount of inflation. And they are not tapering anytime soon either.
Case in point: M1-Money Supply has doubled from $1.2T to $2.6T since late 2008.
This is not leading to the stabilization of the economy and the encouragement of investment.
This can be seen in that unemployment/underemployment has spiked to 24%. And worker participation has dropped from 66% to 63% over the last 4 years. And it is still dropping.
So, we have a devaluation of currency and real wealth, tied to an increase in unemployment. How is this a net gain for people who work for a living? And this devaluation will accelerate as Govt's debts increase.
Case in point: M1-Money Supply has doubled from $1.2T to $2.6T since late 2008.
This is not leading to the stabilization of the economy and the encouragement of investment.
This can be seen in that unemployment/underemployment has spiked to 24%. And worker participation has dropped from 66% to 63% over the last 4 years. And it is still dropping.
So, we have a devaluation of currency and real wealth, tied to an increase in unemployment. How is this a net gain for people who work for a living? And this devaluation will accelerate as Govt's debts increase.
References: http://www.shadowstats.com/alternate_data/unemployment-chart...
http://www.washingtonpost.com/blogs/wonkblog/wp/2013/09/06/t...