Have companies deleveraged since 2008 or have they continued to borrow, give to their lenders, buy back stocks and gut their operations to provide golden parachutes to a select few before the company is driven into the ground? What are the largest capital investments right now–are they coming directly from governments? Can we compare the economy today with any in history? To what extent is world and illegal trade holding things together (random)? Is the money that is created to buy mortgages, backed by the full faith and credit of the US via Fannie and Freddie, all being kept as reserves? How much of that money is paying salaries and bonuses in the banking sector? Is the money used by hedge fund managers coming from government expenditures or the banks–by what mechanism? Is the student loan market growing? Where are those loans coming from–governments (Sally Mae) or private banks? How about mortgages? Are these pertinent questions? I understand that the Fed is creating money, I’m just not sure where it is going.
My apologies for this delayed response to your questions. Yes, your questions are pertinent. All central banks create money and this money finds its way into many different sectors of the economy. Which sectors are affected in any specific time period and country are questions that can be answered only after detailed historical inquiry.
For an enhanced understanding of the process by which central banks create money in a fractional reserve banking system I would recommend Rothbard’s Mystery of Banking, especially chapters 6-11. A solid understanding of this process is necessary for obtaining a grasp of what is going on in the various sectors of the economy.
For answering questions related to the banking sector a good place to start would be David Stockman’s recent work – The Great Transformation.