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| I don't disagree with you, John. As I said, Greenspan started us on this runaway train back in 1987, IMHO. His actions following the stock market crash were, in retrospect, the absolute worst things he could have done. Fast forward to now, and we see a Fed so terrified that they are willing to bankrupt all the pension plans in this country to avoid the necessary corrective cycle low. This scares me - a lot.
On "expectations of high inflation" - I wasn't talking about the Fed. I was talking about the kind of posts I read here on the forum. I believe the Fed is terrified of deflation, and probably rightly so. What the unintended consequences of their actions might be, we can only wait to see.
As for a "rigged market" - the only thing I will add is that supply in this market is always controlled by the same people, isn't it? At times, we might think they are doing it responsibly, and at times, we might think they are irresponsible. But there is no such thing as a "free market" when it comes to supply. The market is made by demand. Bids are offered based on expectations of what the Fed will do with supply. It's still a market, but can never be anything buy a market where supply is controlled.
Of course, it probably will not end well. But I do not think that we can conclude that inflation is the way it must unfold. | |
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The 4.5 trillion dollar balance sheet. Continued QE
