The existing (and ongoing) massive expansion of base money into the banking
systems of the US, England, and Japan is without precedent. As Nomura's Richard
Koo notes, at 16x statutory reserves, the liquidity 'should' have led to
unprecedented inflation rates of 1,600% in the US, 970% in the UK, and 480% in
Japan. However, it has not, yet. In short, Koo explains, businesses and
households in these economies have stopped borrowing money even though interest
rates have fallen to zero.
http://www.zerohedge.com/news/2013-04-20/japans-inflation-propaganda-and-why-boj-better-hope-its-not-successful
http://www.zerohedge.com/news/2013-04-20/japans-inflation-propaganda-and-why-boj-better-hope-its-not-successful
