ah, I see what your saying I think.
Still, take a look at the rate of growth in the economy. take a look at the inflation rate. it seems to me that all these rounds of quantitative easing have not had any negative effects, only positive benefits. albeit very small benefits.
Indeed you are correct sir although I dont know what benefits youre speaking of although Im sure there have been some small ones.
So a few reasons for the lack of inflation would be:
1. a lot less ppl working now b/c businesses cut the fat from their ranks to become more efficient(this is why they will have to higher new employees when they begin producing more)
2. Dodd Frank and the latest Basal agreement have upped the banks capital reserve requirements meaning they have effectively less money to lend out per dollar they receive in deposits
3. Banks are alot more risk adverse now so alot of the projects they may have gave money to previously they arent now so there is less money in the market.
4. Business are more risk adverse now so alot of projects they would have taken on or asked for loans for they are not persuing now.
Im sure there are tons more but those are the ones I can think of off the top of my head.
This is why ppl pay attention to the FED meetings that I believe are hold quarterly to see if they will raise the interest rate at the FED window. The fact that the didnt choose to raise it from basically zero which is where it is now at their last meeting shows that they dont believe the economy is getting better or going to get any better anytime soon.
If they think the economy is getting better or is going to get better they will raise the interest rate so ppl will by bonds which will take money out of the market and help control inflation. At least thats their hope there are so many factors its ridiculous.