The Fed are Imbeciles
The Fed and Treasury are run by imbeciles. QE2 printing and asset purchases to fight asset deflation is just dumb. The reason asset values are falling is that there is no confidence in the current Fed/government policies so no one believes that the value of assets is worth the price.
The US is selling treasury bonds to fund government debt that is not sustainable. Investors know that they will never be repaid so they shun the investment. The Fed steps in the breach, prints money then uses the money to buy treasury bonds funding a bloated and unsustainable government. Round and round it goes until it can't. Then the charade collapses.
There is a one year backlog of unsold houses rotting in place, thus losing value every day. This backlog depresses the value of all the other homes in the country so housing prices haven't bottomed yet. Who would buy a home in this market knowing that prices haven't bottomed out yet? Housing will continue to deflate in value until the foreclosure mess is sorted out and home buyers can discover price.
There are vacant commercial buildings all over this country which means that their value has tanked as well. Many of these buildings are also being allowed to rot in place. The entire market is deflating as businesses close and consolidate.
US company stock values are deflating as the consumer economy coasts along in the depression and investors shun stocks. Municipal bond values deflate as the tax base deflates making cities insolvent. Non-essential merchandise value deflates as consumers stay home and horde cash. It goes on and on.
The Fed is left with only one weapon, print money that will end up in emerging markets where it will inflate their currency so US exports seem cheap. The Fed hopes that the destruction of other countries export business will jump start the US economy. Is this moral? Probably not but the Fed and government have no choice. So the US fucks the rest of the world to get an edge.
I think the game is over in the US. Most people see the immoral manipulation that caused the economy to crash and are unwilling to continue to play the game. The game can't continue so it won't. Bubbles have been destroying the US economy for decades and this Fed QE bubble may be the last before it implodes the US and global economy. Currency war or shooting war? It doesn't matter. The central banks and the dollar are shot as we see how low we can go.
The Fed wants inflation, it will get it. In oil, gold, silver, grain, copper and all the other commodities that make the global economy run. Hyperinflation in fuel and food will be the result of the Fed's stupid policy. Housing, commercial real estate, most stocks and bonds will continue to deflate. What's that gonna do for confidence?
The Fed are imbeciles.
The US is selling treasury bonds to fund government debt that is not sustainable. Investors know that they will never be repaid so they shun the investment. The Fed steps in the breach, prints money then uses the money to buy treasury bonds funding a bloated and unsustainable government. Round and round it goes until it can't. Then the charade collapses.
There is a one year backlog of unsold houses rotting in place, thus losing value every day. This backlog depresses the value of all the other homes in the country so housing prices haven't bottomed yet. Who would buy a home in this market knowing that prices haven't bottomed out yet? Housing will continue to deflate in value until the foreclosure mess is sorted out and home buyers can discover price.
There are vacant commercial buildings all over this country which means that their value has tanked as well. Many of these buildings are also being allowed to rot in place. The entire market is deflating as businesses close and consolidate.
US company stock values are deflating as the consumer economy coasts along in the depression and investors shun stocks. Municipal bond values deflate as the tax base deflates making cities insolvent. Non-essential merchandise value deflates as consumers stay home and horde cash. It goes on and on.
The Fed is left with only one weapon, print money that will end up in emerging markets where it will inflate their currency so US exports seem cheap. The Fed hopes that the destruction of other countries export business will jump start the US economy. Is this moral? Probably not but the Fed and government have no choice. So the US fucks the rest of the world to get an edge.
I think the game is over in the US. Most people see the immoral manipulation that caused the economy to crash and are unwilling to continue to play the game. The game can't continue so it won't. Bubbles have been destroying the US economy for decades and this Fed QE bubble may be the last before it implodes the US and global economy. Currency war or shooting war? It doesn't matter. The central banks and the dollar are shot as we see how low we can go.
The Fed wants inflation, it will get it. In oil, gold, silver, grain, copper and all the other commodities that make the global economy run. Hyperinflation in fuel and food will be the result of the Fed's stupid policy. Housing, commercial real estate, most stocks and bonds will continue to deflate. What's that gonna do for confidence?
The Fed are imbeciles.
posted by lugh lampfhota at 8:05 PM
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