The End is Nigh

And it's not even from anything "cool" like nuclear winter or some super-virus, but rather from...an money-bombing Fed? Financial Post explains:
The spillover effect of all this on the rest of the world promises to be dramatically disruptive. The greatest global risk is in monetary and currency policy. Below is a chart that graphically demonstrates the sharp deviation in monetary policy from past norms. Under the chairmanship of Ben Bernanke, the Federal Reserve is in the midst of a giant economic experiment, flooding the world with U.S. dollars, hoping that flood will stimulate economic activity.

The total monetary base, already at astronomical levels, is now expected to take another big hit with the new Fed policy of buying up U.S. longer-term treasury bills in a bid to drive down long-term interest rates.
Weak. "Helicopter" Ben Bernanke probably doesn't even know how to ride a horse.


1 comment:

Oldrightie said...

This nightmare is slowly unfolding. 9/11 looks more and more a catalyst for extremist victory through the destruction of The West's economies. The best weapon left to us is to save and not borrow our way out.