Real Men Don’t Do QE

Unless you live under a rock, you must be aware that the Federal Reserve is now widely expected to engage in a strategy of expanded Quantitative Easing to fend off incipient deflation, or if you believe the Fed’s latest statement, even to get low inflation to be more in line with what the Monetary Policy Committee believes is consistent with its dual mandate of price stability and full employment – in other words higher. This is the reason that metals are up, to some extent that grains and softs are up, the dollar is down and stocks are up. In other words, all trading depends now not on whether you can determine whether there is higher or lower demand or supply trends for any given commodity or asset class, but on what insane academic theory a couple of guys in Washington DC or even in Beijing are going to cook up. So for those whose livelihood depends on such things it all comes down to guessing the intentions of a very few people rather than what is actually going on in the world.

Might I suggest that trying to levitate markets and support the utterly unsustainable debt of the United States through such underhanded means as issuing dollar chits to the Treasury directly in exchange for Treasury Bonds so our out of control government can spend more out of control money on more out of control social engineering experiments is the kind of thing done by the kind of people your mother told you to avoid? This is known as monetizing the debt (never mind the actual mechanism it is the essence of the thing). In other words theft. If Helicopter Ben wasn’t so nattily dressed with his bow-tie and neatly trimmed beard and hailing from Princeton (where Einstein worked you know) you would think the person doing this was a Russian politician/bureaucrat, some kind of scumbag that should not be driving a bus much less driving the US Economy.

We got ourselves into this mess. Let us face it squarely and either admit we are not going to pay, or buckle down and get to it while getting the god damned government out of the way so we can get it done. No more of this mamby-pamby BS where we hide furtively in the shadows, coming out only to lie to ourselves and others “Oh yeah, no, everything is ok, we’re good” while cutting the corners off the coins we are using to pay our bills.

Real men do not do QE. I always thought of our country as being full of real men (women too obviously). Are we real men in the United States or not?

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