AT SOME POINT...IT REALLY MAKES NO DIFFERENCE HOW MUCH LIQUIDITY BERNANKE DUMPS INTO THE SYSTEM...
SADDLY THE NOTION OF "TAKING AWAY THE PUNCHBOWL" IS A RELIC OF THE 20TH CENTURY... TODAY THE FED IS SEEN AS AN ENDLESS FOUNTAIN OF PAPER DOLLARS FOR THE SPECULATING CLASSES...THE REAL ECONOMY BE DAMNED!
AFTER ALL THE SPECULATING CLASSES ARE THE US ECONOMY NOW...AND THEY MUST BE KEPT HAPPY LEST THEY TOO DECIDE TO DUMP THE DOLLAR AND MOVE OFF SHORE.
BERNANKE AND THE FED SEEM TO THINK THAT PRINTING EVER MORE DOLLARS IS THE WAY TO "SAVE" THE BUBBLE PRONE US ECONOMY...
THEY ARE WRONG! AS WE SHALL SOON FIND OUT...
HYPERLIQUIDITY AND ASSET INFLATION CAN NOT BE "CURED" BY MORE LIQUIDITY...IT'S JUST THAT SIMPLE...
THE TRILLION DOLLAR "OFF THE BOOKS" WAR BY THE WAR CRIMINAL AND MONSTER, BUSH, IS NOT INSPIRING CONFIDENCE FROM US BOND HOLDERS...
AND I'M SURE CHINA ETAL ARE LOOKING FOR AN EXIT STRATEGY FROM THE DOLLAR AND THE US BOND MARKET...ASAP.
