Posted on 04/21/2013 5:43:42 AM PDT by OwenKellogg
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The reality of the Fed's actions, when combined with expansionary fiscal policy, is that neither fiscal nor monetary policy is effective any longer in dealing with the systemic structural issues in the Western world's economies.
Additionally, the Federal Reserve's policies are borderline negligent and irresponsible. The Fed is creating the next bubble that will make the housing bubble bursting look tame.
When interest rates have been maintained at near zero rates for over five years, entire economic structures and systems/businesses become dependent upon such low rates.
The Fed's current policies fail to reflect that economic uncertainty is preventing the expansion of the U.S. economy as opposed to the cost of funds. Ben Bernanke's doctoral thesis asserts this very point about the impact of uncertainty on investment.
Read more: http://www.americanthinker.com/blog/2013/04/fed_fueling_stock_market_inflation.html#ixzz2R6L27Yuu Follow us: @AmericanThinker on Twitter | AmericanThinker on Facebook
(Excerpt) Read more at americanthinker.com ...
I believe that the Fed is just a perpetual bubble machine.
Yep, and yesterday, FINALLY, the supposed great sage Mohamed El Arian FINALLY figured this out!!!! (maybe it was Friday)
What’s so sad is that if the regime were to fund 85 billion per month into small business the country would have a resurgence never seen before. But, instead IMam Bernanke gives it all to his buddy bankers.
Another liquidity bubble.
Now, I’m not saying the Fed loves bubbles, but the nominees to replace Bernanke next year include Lawrence Welk, John Travolta and http://images4.fanpop.com/image/photos/24200000/Cradles-Bubbles-powerpuff-girls-24270680-355-324.jpg
That is a great thought. It is of course impossible because there is no fair way to distribute the largesse.
Instead of going into the hands of DNC approved entities, it would be wasted all across flyover country.
the supposed great sage Mohamed El Arian FINALLY figured this out!!!!
Did he repent?
if the regime were to fund 85 billion per month into small business the country would have a resurgence never seen before
Or withdraw $85 billion of taxes and regulation each month.
nah, acted like he was on cutting edge......no doubt clueless Joe Kernan will kiss up to him Monday on Squawk Box (and sadly, Joe’s the best one on that show....)
Silly me! I forgot! You are right of course.
...Or do both....
We would also have hyperinflation.
But, instead IMam Bernanke gives it all to his buddy bankers.
No he gives it to the politicians. The banks are not "given" anything except very low rate loans that result in speculative carry trades that ultimately weaken the economy.
If Don Ho was still alive and in charge of the Fed you would only have Tiny Bubbles.
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