The Fed, QE & What Would Jesus Do?
QE is winding down? Yesterday, James Bullard, the president of the St. Louis Fed: “We have to make sure inflation and inflation expectations remain near our target. And for that reason, a reasonable response of the Fed in this situation...we could go on pause on the taper at this juncture and wait until we see how the data shakes out into December.
If the economy is still as robust as I am describing it, then I think we could just end the program in December. But if the market is right, and this is portending something more serious for the U.S. economy, than the committee would have an option of ramping up QE at that point."
The Nattering One muses... we read the last statement to mean, Bullard is clueless and the Fed has no idea what they are doing. We read the first statement to mean, we might continue to mask over the reality of a liquidity trap with more QE.
Allowing more speculative asset inflation while the savers get robbed blind. Proving again that Adam Smith's Invisible Hand of the Free Market is a myth, as there are no free markets.
From a 2005 post.... I will refer to a documented historical event. I am an Agnostic and I do not present this event in a religious light; or in any manner other than for the purpose of demonstrating the effect that the "money shufflers" have.
The money shufflers in the Temple Market of Jerusalem profited greatly from the exchange rates that they charged worshipers for shekels to pay the priests, and then from the priests to convert it back into Roman money. In effect, they were "double ending" every deal; and they also profited exorbitantly from 300% loans that they made.
It was the sight of this Temple "Market" that triggered the only recorded incident in the lifetime of Jesus Christ in which, he reacted in a violent manner toward anyone.
He overturned the tables of the money changers and the seats of those who sold pigeons; and He would not allow any one to carry anything through the Temple. And He taught, and said to them, "Is it not written, 'My house shall be called a house of prayer for all the nations'? But you have made it a den of robbers." (Mark 11:15-17)
The Fed has made the "free market" a den of robbers. And maybe, within Christ's reaction lies a solution to our problem.
If the economy is still as robust as I am describing it, then I think we could just end the program in December. But if the market is right, and this is portending something more serious for the U.S. economy, than the committee would have an option of ramping up QE at that point."
The Nattering One muses... we read the last statement to mean, Bullard is clueless and the Fed has no idea what they are doing. We read the first statement to mean, we might continue to mask over the reality of a liquidity trap with more QE.
Allowing more speculative asset inflation while the savers get robbed blind. Proving again that Adam Smith's Invisible Hand of the Free Market is a myth, as there are no free markets.
From a 2005 post.... I will refer to a documented historical event. I am an Agnostic and I do not present this event in a religious light; or in any manner other than for the purpose of demonstrating the effect that the "money shufflers" have.
The money shufflers in the Temple Market of Jerusalem profited greatly from the exchange rates that they charged worshipers for shekels to pay the priests, and then from the priests to convert it back into Roman money. In effect, they were "double ending" every deal; and they also profited exorbitantly from 300% loans that they made.
It was the sight of this Temple "Market" that triggered the only recorded incident in the lifetime of Jesus Christ in which, he reacted in a violent manner toward anyone.
He overturned the tables of the money changers and the seats of those who sold pigeons; and He would not allow any one to carry anything through the Temple. And He taught, and said to them, "Is it not written, 'My house shall be called a house of prayer for all the nations'? But you have made it a den of robbers." (Mark 11:15-17)
The Fed has made the "free market" a den of robbers. And maybe, within Christ's reaction lies a solution to our problem.
Comments