All Eyes On Fed Next Week
The Federal Reserve looks to be announcing the plans for their next phase of quantitative easing next week. The announcement will come on Wednesday, November 3rd. Interestingly, this comes a day after the elections. Whether or not the timing means anything is up for you to decide.
For now, the markets are kind of in a holding pattern as the only thing that really matters anymore is how much money the Fed will throw at the markets and at the economy. With no money being thrown at either, both would collapse. Thus is the American economy today.
Completely dependent on Ben Bernanke and his printing press.
Oh boy am I excited about the future prosperity of this nation.
The reason for this is because Americans were unable to fund their desired standard of living via its productive output and instead required an expansion of credit. This has been going on now for decades. When the expansion of credit stopped, we collapsed in 2008. Temporarily of course until the our leaders resumed expansion via public debt and Fed policies.
If you watch CNBC, it’s truly amazing how many sharp looking guys with advanced degrees and fancy titles give eloquent explanations for why QE2 is a good thing. Of course most Americans buy into it, these guys sound good unless of course you know anything more than the average American (which isn’t much).
I typically tell people that the Fed is the core of the problems in America. The Fed allows fractional banking, bubble economies, endless deficit spending, etc. Unfortunately, this view isn’t entirely accurate.
The core of our problems are stupid Americans. Until Americans decide they want to know more about Ben Bernanke and TImothy Geithner than Snooky and “The Situation”, we can expect the elites to run this country into the ground with the passive permission of the collective public.
You know what they say, you get what you deserve. Americans are about to get another round of “quantitative easing.” Americans will get future inflation (and actually present inflation just via deceptive means). Americans will get a lower standard of living.
Americans will get what they deserve. Enjoy Jersey Shore tonight.