$2 trillion in QE money is going into the coffers of the big banks and very little is getting into the economy. If it were velocity would be rising not dropping like a stone because consumers make up 70% of the economy. Bernanke is like Frankenstein shooting his slag with loads of high voltage and not even getting a twitch in response.
source: ZeroHedge
With a 10% reserve requirement banks could potentially lend out $20 trillion, but they are NOT, as the $2 trillion gap between deposits and loans since the crisis year of 2008 clearly shows. Instead, the plutocrats are sitting on a comfy $4 trillion float (2+2=4) for which the government will charge our descendants.
During another financial panic long ago and not so far away, in fact in 1895, JP Morgan [above] convinced hard-money Democratic President Grover Cleveland and the US government to buy 3.5 million ounces of gold from the House of Rothschild and himself. The administration used funds from a then massive 30 year bond issue without Congress' approval on the authority of an archaic Civil War era law. Then, gold was really money (apologies to Max Keiser) and there was a run on the government's gold supply. Of course the man who passed for Zeus in those days profited from the bond syndication, as well as he profited from the sale of gold and the end of the Panic of 1893. It was William Jennings Bryan's "cross of gold". Cleveland loss the ensuing election to Republican McKinley. The moral of this tale is that plutocrats like Morgan, aka James Dimond, never loose because they rig the game.