“No taper for you, one year!!!” – Ben “QE Nazi” Bernanke
The Fed has trotted out another one of their 12 lapdogs to provide the latest excuse for not tapering. We are supposedly in the fourth year of economic recovery, have added millions of jobs, corporate profits are at record highs, and the stock market has set an all-time high, but somehow the Federal Reserve isn’t comfortable not buying a dime less than $85 billion of debt per month. Ben was counting on the trumped up Syrian war to be his excuse for not tapering in September. When that excuse dissipated into thin air he was left with no good reason to not taper. But he announced he wouldn’t taper anyway. Now Ben and his minions will use the government shutdown faux crisis as the reason to not taper until next year. But, conveniently, Obama and the morons in Congress have set February as the date for the next fake budget crisis. This will give Yellen an excuse to not taper until the middle of next year. The recession that has already begun, but won’t be acknowledged until next June, will be Yellen’s excuse to increase QE to $100 billion per month.
This farce will continue for eternity. The propaganda used to rationalize QEternity is nothing but drivel, lies and misinformation. There are a few simple facts which tell the true story:
- The U.S. government spends $2.8 billion per day more than it brings in. The $85 billion per month of QE (debt monetization) just happens to equal $2.8 billion per day.
Do you think this is a coincidence?
The Federal Reserve is funding the annual deficit because foreigners will not do so at 2.6%. Even talk of tapering drove 10 Year Treasury rates up 140 basis points. Actual tapering would cause interest rates to soar well above 3%. At a still low rate of 5%, interest on the national debt would go from $250 billion to $700 billion in the blink of an eye. The annual deficit would scream towards $1.5 trillion.
There will never be any tapering. They will manufacture one crisis after another as an excuse. I bet Bennie is looking forward to his retirement and that big paycheck as a Wall Street bank “consultant”.
Meanwhile, TAPER OFF AND PARTY ON GARTH