Federal Reserve
The Federal Reserve it can be argued has done a great job of propping up the economy during the Great Recession with its easy money policies led by Quantitative Easing 1, 2 and 3. However, the growth in the stock market and the low interest rate on our ballooning debt is artificial as a result of the Fed's policies. Dialing back of their latest bond-buying program, is the finesse move confronting the Fed for the next five years. If the Fed moves too fast, it could cool the recovery. If it moves too slowly, it could fuel asset bubbles or excessive inflation. With the stock market booming since the election of Donald Trump, these fears are heightened.

A New Era Is Breaking

from Bill Bonner's Diary,

"The current market turmoil tells me a new era is breaking…" – Andy Kessler, author, “Inside View”

Suicidal Money-Printing Yesterday, stocks recovered a little ground, following bi-partisan support for suicidal money-printing. The Dow finished more than 1,000 points higher. But this morning they are falling again, down the limit in futures trading.

It would be pointless to mention that it was “stimulus”, giveaways, free money, and fake interest rates that got us here in the first place. But now the Federal Reserve has cut its key rate down to a zero (despite a consumer price inflation rate over 2%) and ramped up its Repo Madness program. And the Trump Administration has now panicked, just like the Obama Team in 2009. Together, they are going to shower the nation with what used to be called, derisively, “helicopter money.” Like manna from heaven, it falls on the heads of the just as well as the unjust… but generally ends up in the pockets of scoundrels. Like Mnuchin himself, who pocketed millions from the bailout of ’08-’09. But now, there is no derision sharp enough to make the grifters bleed. They have the support of the Deep State, the press, Wall Street… and every dumbbell on every corner of Main Street America. It won’t be long before we have a guaranteed basic income, too.

More From Bill Bonner's Diary:

A New Era Is Breaking

365 Days Page
Comment ( 0 )