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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives
SPY 681.89+0.3%Oct 31 4:00 PM EDT
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To: FCom777 who wrote (57215)2/10/2014 6:45:55 PM
From: realskeptic73 Recommendations

Recommended By
D.Austin
Fiscally Conservative
GROUND ZERO™

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It is also possible that it will end in some dramatic way that we don't see coming. Things that can't go on forever--don't. The Fed's focus should never have expanded beyond trying to hold inflation to perceived optimal level. Once they started trying to prop up markets, prop up employment, or whatever, they have laid the seeds of their own demise.

They are almost completely trapped now. If meaningful tapering occurs (easing of QE'ing), and then rates rise, our whole DC, one-party-state, client-services system breaks down. Servicing the debt and servicing the clients requires more money than the gov't has or will be able to raise.

It's possible that the growth of the monetary base you showed will lead to enough (just enough!) inflation to inflate away the Fed's balance sheet, overseas bond holders, and gov't obligations (and that is what they are betting on), but I can see other possibilities. And history is littered with such failures. Unfortunately, I don't see a way off of the speeding train. Destined to live through it, perhaps.
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