After The Gold Rush IV: Fear Not The Latent Unpleasantness. Fear The Pain-Killer Instead
Kicking the metaphorical Mr. Brownstone of QE is also necessary for the United States to ever redevelop the economic power that we once enjoyed. Fed Chairman Ben Bernanke may be pitching his last inning, but he said the right thing when he announced that The Fed would taper the rate at which it shelled out QE. As you can read below, that will be hard. Here’s what Mr. Bernanke got as a reward for speaking the truth to a gaggle of easy money addicts yesterday.
STOCKS GETTING SLAMMED — INTEREST RATES SPIKING — COMMODITIES CRUSHED — GOLD AND SILVER TANKING, The LIBOR Of China Is Going Totally Ballistic, Market Bloodbath In Brazil, and you’d better have a GOOD Plan ready, because Night Wolf is Eating The Moon Virgin! Now I can’t quite verify that last one, but it’s not a good day to check in and take a peek at the Ye Olde Mutual Funds.
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Bernanke Opens The Spigots
I’ve taken a deep breath since the Fed announcement of QE III and no longer care whether or not The Ben has a bumper sticker supporting Obama/Biden on the bumper of The Benmobile. I can’t stop the man, so the deeper question is one of whether he has improved my existence or made it worse. I disagree with many here and opine that QE III will make America a worse place in three respects. It will make us all more susceptible to moral hazard, it will make politicians less accountable, and it will fail in its stated objective of ever improving unemployment.
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Does Our Government Now Hate American Cities?
Internal Revenue Service data from 2009 shows that 58% of all of the tax-exempt interest reported to the IRS was from individuals with incomes of $200,000 or higher. (Bondbuyer.com) In recent weeks, The Federal Reserve and the so-called Obama Administration have teamed up to restrict the ability of American Municipalities to finance long-term, necessary infrastructure projects. Of course, this was neither the stated, nor the | Read More »
Decoding the Objectives of the Fed’s QE2
It’s been clear enough to everyone with eyes that the most visible effect of the Fed’s QE2 program would be to inflate the stock market, and possibly (because of the weaker dollar) commodities too. A view is starting to emerge that this is what Bernanke actually had in mind. Creating a huge amount of new "bank money" obviously did nothing to stimulate the creation of | Read More »