|From: National Inflation AssociationDate: 10/30/2014
Subject: End of QE3 Shocker – Where QE3 Money Really Went!
Yesterday was the official end of QE3, a program that did nothing to help America’s middle class or small business owners, but instead allowed the world’s largest banks to speculate in the stock market and drive asset prices through the roof – to give the false appearance of an economic recovery. Shockingly, the bulk of QE3 funds – $700 billion – went into foreign commercial banks – many of them in Europe, where 24 commercial banks just failedstress tests. Meanwhile, almost no QE3 money – only $21 billion – went to small domestic banks.
Since the 2008 financial crisis, the Four Largest U.S. Banks (Bank of America, Citigroup, JPMorgan, and Wells Fargo) have seen their total deposits increase by over $1 trillion, courtesy of the Fed – with $288 billion coming from QE3. However, they have been using these funds to invest into the stock market on margin – and drive asset prices up to bubbleterritory levels, while deceiving Americans into believing that the U.S. economy is getting stronger by the day – as their standard of living deteriorates. These banks haven’t been making any loans to middle-class Americans or small business owners. Excess deposits at the Four Largest U.S. Banks have just reached a record $1.355 trillion.
During QE3, the Four Largest U.S. Banks each saw their total deposits increase by a far larger percentage than their gross loans. JPMorgan in particular saw its total deposits increase during QE3 by a 9X larger percentage than its gross loans. JPMorgan‘s loan/deposit ratio is now down to an insanely low never before seen level of less than 0.56 vs. its 15-year average of 0.72. Combined, the Four Largest U.S. Banks currently have a record low loan/deposit ratio of 0.70 vs. their 15-year average of 0.89.
The end of QE3 does not mean the end of inflation. There is already more than enoughexcess liquidity in the system to cause hyperinflation – as soon as the public has reason to lose confidence in the U.S. dollar. To see charts illustrating everything discussed in this alert go to: http://inflation.us/end-of-qe3-shocker-where-qe3-money-really-went/