Where is all of this money going? Maybe all this money printing will fuel another huge market run-up? Granted I would really hate to see that because when the honeymoon was over it would be disasterous, but you have to admit it would catch so many investors by surprise.
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The Fed’s money-printing operations are showing-up in the explosive growth of the monetary base, which includes banknotes and coins in circulation, plus commercial banks’ reserves held at the Fed. The monetary base has soared by $630-billion in the past three-months, or +76% higher from a year ago. Between August 1987 and November 2005, under “Easy” Al Greenspan, the monetary base rose from $233-billion towards $782-billion, or an annualized +6.8% rate of expansion.
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