Paul Gambles — How QE may be doing more harm than good

QE is seen by its adherents, such as former U.S. Federal Reserve Chairman Ben Bernanke, as both the panacea to heal the post-global financial crisis world and also the factor whose absence was the main cause of the Great Depression. This is in line with their view that central banks create currency for commercial banks to then lend on to borrowers and that this stimulates both asset values and also consumption, which then underpin and fuel the various stages of the expected recovery, encouraging banks to create even more money by lending to both businesses and individuals as a virtuous cycle of expansion unfolds.

The theory sounds great.

However it has one tiny flaw. It's nonsense.

CNBC — Central Banks
How QE may be doing more harm than good
Paul Gambles, managing partner, MBMG Group
(h/t Warren Mosler at The Center of the Universe, Professor Andrea Terzi quoted on CNBC)