The Fed is afraid to fight deflation. It almost wants the US to be in the Eurozone. Another reason why the Brits were smart to get out, negative rates.

If there is a second referendum, it would explain the media white hot attack on Brits who voted for Brexit. But don't worry, maybe Frexit is just around the corner.

I don't believe Krugman. Now that the pound has lost a little value, exports could boom in the UK. And besides, this movement of labor, arbitrage, is a dirty little game that always hurts the worker. The Brits are tired of the dirty little games. They don't want to lose their currency, they don't want to lose their freedom. The elite don't care. They sponge off the workers anyway.

According to the stock market behavior after Brexit, the Eurozone needed the UK more than the other way around. Go ahead and punish the UK and see what happens to your Eurozone, Brussels: www.talkmarkets.com/.../brexit-cameron-the-architect-of-austerity-almost-fooled-the-brits

QE can be replaced by real helicopter money when it tilts the scale in favor of the upper classes. Friedman knew this but his followers are scared to implement fairness.

I don't want war with Iran, but when it comes to other aspects of this administration, there are serious problems. Investors in Europe are now paying for the deficits with negative bond rates. I suppose we are headed the same direction.

Real rates are negative. Nominal rates would have to be negative. This presents danger to our way of life, to pensions, to insurance, etc. This is a very dangerous plan, far more dangerous and irresponsible than helicopter money as explained by Eric Lonergan: www.talkmarkets.com/.../eric-lonergan-precisely-defines-helicopter-money The author is right about the Fed giving up on the two percent. They will fail to raise rates over time, most likely and will try to go negative sometime in the future. That could be an issue for society as a whole. These New Monetarist Fed economists are afraid of their own shadows.

Great article, but real helicopter money, with no debt or bonds involved, but just base money, would allow an escape from zero lower bound. Real helicopter money will be necessary and Friedman knew it. People need to listen to him, as he left the world with a roadmap. Otherwise, as you say, we are headed toward very negative rates, and instead of stimulus we could see insurance companies and pension funds wrecked in the future: www.talkmarkets.com/.../fed-tricksters-put-your-monetarism-where-your-mouths-are

Low rates are caused partly by the use of bonds as collateral in the derivatives clearing houses. So, bonds are scarce, and others have warned of this scarcity. But also, banks bet on low growth and low, floating interest rates, and stick people who fear inflation with high, fixed rates on the other side of the bets.

Replacing government debt with helicopter money must be what is at work in Japan. It may not be just QE. Real helicopter money is an injection of base money into government or even into the private sector. I am curious how that is working in Japan.