  In agreement with the recent research findings in the econophysics, we
propose that the nonlinear dynamic chaos can be generated by the turbulent
capital flows in both the quantitative easing transmission channels and the
transaction networks channels, when there are the laminar turbulent capital
flows transitions in the financial system. We demonstrate that the capital
flows in both the quantitative easing transmission channels and the transaction
networks channels in the financial system can be accurately characterized by
the Reynolds numbers. We explain that the transition to the nonlinear dynamic
chaos regime can be realized through the cascade of the Landau, Hopf
bifurcations in the turbulent capital flows in both the quantitative easing
transmission channels and the transaction networks channels in the financial
system. We completed the computer modeling, using both the Nonlinear Dynamic
Stochastic General Equilibrium Theory (NDSGET) and the Hydrodynamics Theory
(HT), to accurately characterize the US economy in the conditions of the QE
policy implementation by the US Federal Reserve. We found that the ability of
the US financial system to adjust to the different levels of liquidity depends
on the nonlinearities appearance in the QE transmission channels, and is
limited by the laminar turbulent capital flows transitions in the QE
transmission channels and the transaction networks channels in the US financial
system. The proposed computer model allows us to make the accurate forecasts of
the US economy performance in the cases, when there are the different levels of
liquidity in the US financial system.
