Quantitative Squeezing

by JASmius

Meet the Grinch Who's Stealing Obamistmas; he's got a buttload of coal for False Messiah's stocking:

Financial markets are afloat on an "artificial sea of liquidity" thanks to central bank easing, but eventually the sea will dry up and the result won't be pretty, says star investor Jim Rogers, chairman of Rogers Holdings.

Policymakers "everywhere are under no constraint," Rogers told New York Markets Live online radio. Central banks can print as much as they want; the governments spend as much as they want. So there's no reason this can't go on for a while, because any corrections due to tapering will probably be temporary."

If markets correct in reaction to a Federal Reserve tapering of its quantitative easing, as Rogers expects, the Fed will simply restart its easing, he says.

This quote is puzzling to me.  Why is there "no reason [mad debt monetization] can't go on for a while"?  The only reason I can see is that the underlying economy is so depressed due to Obamanomics that not even an ocean of worthless greenbacks can't be easily soaked up by it like a Bounty picker-upper.  Which means Wall Street is float, float, floating along on another bubble of fiat cash - and when that bubble pops.....

But, "eventually, the market's going to say we say we're not going to take this garbage anymore, this is absurd," he asserts. "It's going to be a disaster. I don't see the bureaucrats coming to their senses, so it's going to be the markets, and it's going to mean a lot of unpleasant times."

Indeed - because the bubble this time will be made of the palliative that was used to treat the last one (i.e. TARP), when the Fed just printed almost a trillion dollars and Congress spent it buying up all the government-mandated bad debt (mortgage-backed securities) that devastated the financial sector, the real estate sector, and the general economy beyond - a catastrophe from which we still haven't begun to recover thanks to the Manchurian candidate it snuck into the White House.  And what follows this next burst bubble will land right in that man's wheelhouse:

Social unrest already has broken out in some countries, he says, "and it's going to get a lot worse."...

The country has faced economic slowdowns every four to six years throughout its history, Rogers points out. "In 2008 it got worse, because the debt was so much higher. Look out the window. You can probably see the debt rising. It's like the beanstalk," he said.

That means the next recession in about 2014 or 2015 will be worse, Rogers says. "Be careful. Be worried. Be prepared."

I've been worried for six years.  But I don't think anybody is, or can be, truly prepared for what's coming, because it's going to be something none of us have ever seen before: a coup de tat, formal suspension of constitutional government, and establishment of Barack Obama's dictatorship, complete with Tiananmen Square-like massacres of Tea Party protestors and the rounding up of those that don't voluntarily put their heads through the proverbial noose.

That's if the Iranian EMP attack doesn't strike first.

But if you want to be a hapless optimist, maybe it'll just be a huge recession in the midst of the Second Great Depression.  I'm sure the Regime will allow us paupers to hawk apples on street corners - as long as they're Alar-free.