Money multipliers are still dropping. The fed can't seem to get money to go where it wants it to go. Another QE won't work especially if it all goes to the banks and insurance companies again. When they are the only ones left - then what?
M1 - money multiplier = 0.87 - lower than during the great recession
M2 - money multiplier = 3.2 ( just calculated this) - lower than during the great depression. Gold will benefit as it will be the only currency that survives - always has been money and always will be. At just 10% of sovereign debt it should reach over $7,000 an ounce until most debt dies and goes to money heaven - then everything will be repriced and we start over.
China is dumping US debt and now equities. Other countries will soon join them. The FED is clearly buying up all mortgage debt but we don't know what else they are buying (equities like banks perhaps, GS?) - the secrecy of the FED is so loud it is deafening.
