by Avi Gilburt
I was forwarded an interesting note by Armstrong this morning about his perspective on quantitative easing. In it, he addresses how Bill Gross is wrong about QE. While his ultimate point is correct, his underlying analysis is wrong:
Respectfully, Mr. Armstrong misses one MAJOR point: The Fed did not create “cash,” but rather made more debt available through the QE process. And, it is not that people are hoarding their cash, as that is a different issue, and has nothing to do with QE. There was NEVER any “cash” created by QE. EVER. Not one dollar.