Quantitative Easing, specifically QE3 this the third round of the Federal Reserve's program of buying mortgage-backed securities from primary dealers (banks) has only had the effect of bloating the banks excess reserves. When the Federal Reserve pays a bank more money in interest on their excess reserves than what they'd make lending this money to customers then it should be crystal clear why the M1 money supply is crashing.
The Federal Reserve is now spending $85 billion a month on commercial housing market debt securities that are nothing more than a collection of mortgage debt. All the high-flying elites; the hedge funds, sovereign wealth funds, high net worth investors, bankers, and other bad actors that control the global kleptocracy are using their government to print money that is cycled right back into their accounts. No stipulation is made that this new money be lent out in the form of loans.
Anyway, why should bankers want to make loans when their casino play cash earns more in interest sitting in their excess reserve accounts? This begs the question, who the hell needs more debt, even if these thieves lent this money out? Especially since the majority of us working slaves are already buried under a mountain of obligations. Couple our current debt burden with the substantial increase in the cost of living that has made everything more expensive. Factor in our declining real income, and it should be obvious that the last thing we need is more easy credit.
Ninety-Five percent of global citizens are suffering from what can only termed income 'starvation'. The amount of money we have left after we subtract inflation (rising prices) from our nominal income has been falling rapidly. This lack of sufficient income that propels the increase in demand for products that keeps an economy from stalling out is the real precipitate of our current global economic stagnation.
Obviously, even if our current economic system weren't a Corporatist contrivance designed to enrich the few mega wealthy by sucking every last drop of income from our governments and our pockets it would still be utterly impossible to 'stimulate the economy' by simply cushioning bankers balance sheets. It should be very clear that it was never the intention of the elite ruling class to 'stimulate the economy'. If they truly wanted to increase demand and stimulate the economy then all that newly printed money would have reached Main Street and not went in the stuffed pockets of Wall Street barons.
Haven't we learned the hard lesson, been exposed to the inescapable reality that those of us not able to afford our own cadre of lobbyist henchmen are on our own, we are but pawns in a global labor gulag that has a single objective: the further enrichment of the castle dwellers, our masters, the elite mega rich.