“I don’t think another $trillion in purchases is enough to achieve what the ECB is trying to do.”
Japan, you gave us karate, Godzilla, walkmans (remember those?), sushi, Hello Kitty, and cars which didn’t fall apart. Though we fought you bitterly in World War II America came to love you more than any other country in the world with the exception of the United Kingdom (and maybe Australia, Canada doesn’t count). We hate to see you in your current straits. One, because we have a general affinity for the Land of the Rising Sun. But two, because we are riding the same bullet train here in the States, just a little further down the track.
It is interesting to hear (some) people praise Mr. Bernanke for having “saved” the United States and the world from Great Depression II. This praise is misplaced to say the least.
Wouldn’t that be a good way to jump start the economy?
From the very beginning people have asked how the Fed would ever exit its Quantitative Easing program. Every time the Fed has indicated that it would stop its extraordinary measures the markets dip. Look at this chart.
There appears to be nothing under this market but freshly printed hundred dollar bills, cotton candy, and unicorn wishes. Throw in a good bit of marginally positive animal spirits too.
Faber says that the Fed will not taper its efforts but will instead be forced to print even higher amounts than the $85 billion (who knows) in funny money it is currently pouring into the world economy every month.
Many people are mystified by the kids at the Ron Paul rallies screaming “End the Fed!”
They ask themselves, “Why should we end the Federal Reserve? The Fed helps maintain economic stability right? Every country has to have a central bank. These “End the Fed” kids are nothing but “Paulbots.” The people on CNBC and Bloomberg tell me that the Fed acts in my best interest. I think the people on Bloomberg and CNBC ought to know what’s right for me and my money. Harry Reid is right. Those hard money people and kids at the Ron Paul speeches are nothing but a bunch of anarchists!”
But the main reason many people feel this way is because they fundamentally don’t understand what the “End the Fed” people are really saying and why they are saying it.
Op ed from James Grant, the person who should be heading the Federal Reserve, and then closing it.
A case for Janet Yellen is that as the Fed’s current vice chair, she represents continuity. Based on her comments and past record, she would either continue Bernanke’s policy or even take them up a notch, creating even more new money in order to “help” the economy. A case against Janet Yellen is the flip side of this. Bernanke’s policies have been a complete failure, so choosing an acolyte of his would be the worst possible thing to do.
You’ll remember that he was going to make the Fed more “transparent.”
I don’t agree with every single point made, but the attached is a very interesting essay. The core point is dead on. “Quantitative easing” is a trick. It is fundamentally about deception. And people want to be deceived especially considering the economic chickens waiting to come home to roost.