Sunday, July 06, 2014

Easy Money Is Gumming Up The Recovery

by JASmius

Which is another way of saying that there is no recovery, and the Federal Reserve is making sure it stays that way:

There are five reasons why excessively low rates from the Federal Reserve may be retarding the economy and blocking job growth, according to BlackRock's Rick Rieder.

Rieder, chief investment officer at BlackRock Fundamental Fixed Income, said the central bank's impact on both issues is unintended but real.

What the Fed has intended and continues intending is to hold interest rates subterranean forever, because if they allowed the market to set the rates, they'd soar into double digits, the deficit would explode another order of magnitude, the economic shock would vaporize the Obama Regime's "recovery" myth and make its engineered depression impossible to hide, and "fundamental transformation" would be forced to become more, shall we say, "overt".

Aaaaaaand it's the reason nobody will buy our debt anymore, which is why the Fed is monetizing it and inexorably destroying the dollar in a cross-connected balance sheet shell game for the ages.

Rider's five reasons are at the link.  Suffice it to say, zero interest rates encourage public and private borrowing and debt at all levels and discourage investment and savings.  It creates the most diametrically perverse economic incentives at the precise time we can least afford them.  And it's making Robert Wiedemer's predictions of "50% unemployment, a 90% stock market drop, and 100% annual inflation" all too plausible.

Didn't happen in 2012, which shows that God's grace is as limitless as He chooses to make it.  But Obamageddon is coming, and soon.

Exit quote: “You see, the medicine will become the poison.”

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