The unending criticism of the Fed’s action on QE must have its foundation in a belief that has been prolifically communicated to the public by all kinds of media.
1. The US Economy is improving and will continue to.
2. Balance sheets of US financial entities have improved greatly.
Therefore they cannot see why the Fed needs to try to stimulate anything.
1. The answer is that the US Economic recovery is stalled. Anything going higher more slowly is starting down on the Economic Accelerator Factor.
The Economic Accelerator Factor is a law of economic denied now for 30 years.
The answer to number one is that the US economy is looking for a lower low on the next move.
2. The balance sheets of the US financial entities show an improvement based on a total FABRICATION. The FASB sold their soul to Wall Street by allowing the entities in question to make up valuation having nothing to do with true value. The fact that a bank holds a piece of junk to the end does not justify valuing junk at cost. That is moronic and destroys the purpose of accounting and auditing.
MOPE has convinced every Fed detractor that all is well. It isn’t.
Top Republicans and Tea Party members are afloat in public letters and complaints to the Fed, but inherent to the people, about the Fed. As well meaning as these people are, they have no idea what dislocation they will cause immediately.
QE is not right but it is the only tool left for the Fed.
The new bodies in the legislative will prevent any fiscal measures. The final hit of the fan will be the result of well meaning but economically ignorant people.
Assuming the new people prevail over the Fed, gold will go to unimaginable prices as Western society implodes.
One conclusion now is neither the right nor the left has a clue of how serious conditions are. As I have told you for years, there is no practical solution to what many administrations have done.
MOPE has backfired.