Thursday, April 11, 2013
The Fed's 2 bullets:
Gee, let's try to see what the Fed will do about its money printing programs:
A) They will keep printing money and giving it to the banks, as long as the real economy remains weak.
How long is that? As long as the banks keep diverting all the printed money into gambling in the risk markets.
How long is that? As long as the Fed keeps printing money and giving to the banks.
B) They will announce every month, and every day through various intermediaries, as necessary, that they are going to slow their money printing sometime soon, because the economy is healing.
This way the market prices in perpetually both a healing economy and infinite money printing.
Pretty clever. Nobody can possibly see through that brilliant and complex strategy - because nobody wants to.
So, what could possibly disrupt this type of brilliant management of the economy?
Nothing, right? Everything is bound to go just right when a very small committee plans and manages a 13 trillion dollar economy. After all, they're really smart over there. Nothing can possibly go wrong.
So party down, follow the Fed and keep gambling.... Everyone's a winner....