Skip to comments.Fed In For A Penny, In For A Pound (outstanding graphs)
Posted on 09/15/2012 8:00:25 AM PDT by Seizethecarp
Basically the Fed has gone too far done the money printing mode to stop now. They believe what their policies will stimulate employment but all operations in this regard have failed. The Bernank will spin this as an apolitical move coming two months before an election that could cost him his job just sayin'.
This policy is intended to boost asset prices and prevent a Japanese style deflationary cycle. No matter what they say, TPTB will always choose inflation vs deflation every time. Thus far they've succeeded in supporting their primary clients, the mega-banks.
The bottom line for us is we're long markets from stem to stern so why should we complain? Being disciplined and systematic is more important than raging at the machine. One thing QE has done is to make a hash of normal technical analysis since "the more money than brains" theme trumps everything.
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Spending OUR money, if truth be told.
Why not go for $40 Trillion a month? No guts, no glory.
No! Actually destroying our money. What the Fed is spending, simply does not exist as money or anything else, until the moment when it is actually spent. This sort of arrogant inflation of the money supply has been going on at an accelerated pace over the past few years. But the result since 1971 has been a 98% reduction of the value of the Dollar!
We now have in effect a dollar worth what 2 cents were worth in 1971, before Nixon was forced to close the gold exchange window, because of the previous excesses at that time.
What is going on is simply this. They are squandering the wealth of the frugal, to create an illusion of prosperity among the gullible, while continuing to "fund" a Welfare State, spiraling towards chaos. God Help our children, if we do not get these crack-pots out of power!
The amazing thing is in normal times we’d have run away inflation about now. Because of the continuing depression people are holding back their dollars so the worthless nature of those dollars stays hidden. I predict inflation will be terrible under Romney and he will get all the blame.