Huge Excess Bank Reserves Built at FED Point to:
Steady inflation, long rates & gold - but much higher equities.

The US monetary base has grown 5 fold in 5 years from $0.8 trillion in 2008 to $4 trillion today. Considering that it took 232 years to reach $0.8 trillion and 5 years to grow 5 times, the supply of money may be more than adequate for the remainder of the millennium.

Banks have built up huge surplus reserves of $2.6 trillion at the FED. While this has never happened before, it cannot yet be concluded that "This time it is different". It is just taking a lot longer than in the past for the money created by the FED to pass through into the economy. In the meantime, it looks as though lower than anticipated economic growth, inflation and interest rates as well as much higher equity prices could be around for a good number of years.