Velocity crashing due to QE.
http://www.zerohedge.com/news/2013-10-21/qes-gross-misallocation-capitalSo the fed pumps money in, expecting velocity to stay constant, but it doesn't. Fisher was wrong. There at times when even near zero rates will not cause credit growth to increase.
So what do they do? Force feed credit gavage style to students, automobile loans, corporate debt to fund buy backs, REO to buy property, property refinancings, margin debt and of course government debt.
Sure they are going to succeed for awhile. Then it's going to blow up in their faces all over again.
Agree on this point. I'm expecting a deflationary collapse sometime within the next 2-3 years but I don't think that the crash will come from the US but rather from Japan and we'll see investors rush to the dollar and possibly gold and bitcoins too.