Monday, October 21, 2013

Tapering is just a start

"When the economy resumes normal growth after the Age of Deleveraging is over, these excess reserves will spawn huge loans and money expansion, propelling the economy past full employment and into serious inflation. So the Fed's major job is to get rid of these excess reserves by selling securities. Tapering — i.e., adding more to this hoard — is just the start.”

source: businessinsider