"You can print all the money you want. But if people aren't borrowing or spending it, your economy is collapsing..."
Look at what has been happening with the velocity of money. It's plunging.
This is his chart illustrating how much economic growth per dollar of debt we are getting.
To me that chart showing the trend of the velocity of money confirms what I have read from various other sources, which was that all of this money the fed is printing with their QE programs is being hoarded in reserves and isn't actually exchanging hands as it needs to if it wants to help stimulate commerce.
The fed has a lot of debt on it's balance sheet. Hopefully our economy can actually turn around and start growing so we can begin paying down all this debt or sooner or later providing a catalyst emerges the shit could indeed hit the fan. Nobody knows what will happen, as far as I know central bankers have never been so involved.
Quantitative Easing began as an experiment. It has successfully managed to balloon up asset prices, cause negligible inflation, make the rich richer, not meaningfully increase the employment to population ratio, and somehow manage to drastically increase the money supply at the same time it slows the velocity of money.
Is everything going to collapse into the throws of another great depression? I doubt it. Central banking has shown to be a very powerful force in markets, if they start dropping too fast I imagine a fresh round of QE is always on the table to save the day. I do think that at the very least a correction in the major indexes is overdue.