Could it be that
If you give money no worth it’ll get no worth, is at the ground of all financial problems currently.
Just see that the Fed has flooded the market with money in good times and flooded it more extensivly in bad times. So the whole money supply has left “real” ground. Just guess how easy it is:
Let the be an inflation rate of 2 %, but let there be a part of the economy where one has 10% inflation. So now the Fed was oriented at the low bound, so they make money cheap (let’s say around 3-4 %. People not dumb, have seen this discrepancy and collected debt as hell. From the individuals point of view this was clever. But seen in the large it was a catastropy to happen.

So it has come. Now money was definitly too cheap and indeed there was way too much money. So how could even more money help. Where will all the new “generated” money end. Currently we are heading for a world-wide recession. But if there will be even more money, shouldn’t the result be stagflation?

I can not help but I fear stagflation quite much more than recession. It means you can not print even more money so the money suply must be reduced. Well with the Trillions spend in this year and maybe up to the half of the next year. What spares are left?

If I just see the current debt numbers, the answer is none. So we’re heading towards a bigger problem as ever. Money can not be printed any more, because it’s not worth anything then. So how will they break this cycle.

I’m really getting very pessimistic.