by Charles Hugh Smith:
"Central banks keep pulling their one lever to "fix" the economy, but nothing is fixed. Monetary easing only compounds the problems.
"Stripped of acronyms and pseudo-economics, Central banks have one lever: monetary easing. Whatever the name offered for creating money electronically and suppressing interest rates, it boils down to making money abundant and cheap to borrow, at least for banks and other favored players, such as buyers of homes using 3% down-payment FHA mortgages.
"The problem is that easy money doesn't fix what's broken. We can state this simply ..."