Re: All according to plan
"I've got some news for you. There's no such thing as a free lunch. If you save your money with a bank, you are lending it, at risk. The risk being the bank going pop, and you losing your money."
That's not news to me, I agree entirely, and it can't be said often enough that money in the bank is actually a loan to the bank and you no longer own the money - just a claim on it.
However as I mentioned some of my savings are in gold, but some of my family members, who mocked me when I mentioned the yellow metal, have the majority of theirs in bank deposits or sterling denominated shares. Although I feel a little smug about it, I take no pleasure in them being 10-15% less wealthy than they were not so long ago.
I can't agree with your assessment of QE saving the banking system but it's a bit late so don't feel I can go into detail without messing up my post. Yes, QE can theoretically be clawed back when the cash comes back to the central bank. But really, do you think that will ever happen? It's not happened in 25 years of doing it in Japan where it was invented. I can't think of a single instance where a CB has removed the QE from the system. QE is de facto money printing.
And that's an easy way out, a way that has been tried, tested, and failed from ancient Greece, through Rome, via the Wiemar Republic and a thousand other realms in between and on to us today. It will fail again ultimately, and the longer we stretch it out the worse it will be, we should have let it all go to pot in 2008 and rebuild, because now it's going to be even worse when it goes.