The Obama Economy- No QE Taper Possible Before 2014 Elections
Every few weeks, a new Quantitative Easing (QE) rumor begins. I have been following this phenomenon quite closely while consuming and digesting virtually everything that I can read on the subject. In a nutshell... QE is the FED's way of liquefying the bankrupt banking sector by injecting 85 billion a month. In an inflation sense- this is incendiary. With all of this free money, the bankers and the elite have run the markets to astronomical levels in this pretend recovery. Predictably enough, outgoing Chairman Bernanke (the same guy who saw no bubble in housing in 2007) assures us that the FED can instantly withdraw all of those excess reserves (trillions) sitting around on member banks' computers. I can virtually guarantee there will be no stop to QE prior to the 2014 elections. Instead, the FED will simply talk about ending QE by supplying various lines of bullshit to a naïve and unwitting populace. In fact, this has been their modus operandi over the last 9 months or so...