You know, that is a really good question.
This is what the Fed would prefer you not know.
Attached is an extremely well done article which lays out why it is that today’s political establishment, especially the “progressives” are so afraid of libertarianism.
(Alternatively just keep your head down and keep working hard, which is probably best.)
QE is failing. (It was destined to, as we have said many times.) They may be able to jack the system up again. That is extremely possible. But I think it it is equally possible that an alternative scenario plays out here.
Keep watching Japanese debt.
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.
The economic tide has been going out for quite a while, but the pace has just quickened in emerging markets – big time. Things have become quite unsteady and no one knows whether the current instability will trigger something broader in the developed economies. China is slowing. Japan has horns locked with China economically and increasingly politically. Europe is catching its breath before another wave rolls through.
Oh the horror, the Fed is only dumping $65 billion into markets next month. Boo hoo. We want our free money!
Is the unwind here? It appears so. It’s coming sooner or later anyway and people are coming to terms with this. “Sentiment” is shifting.
The “fairy dust” has kept things going for a long time. Will it continue to work? How long? It won’t work forever. Did it just stop working?
Next week will be fun.
Oh Ben, Ben, Ben. We’re gonna miss you. Not really, but it did seem like yesterday that you swept in in the wake of “The Maestro” (no one calls him this anymore) Greenspan. So much water under the bridge. So many dollars printed out of thin air.