Sorry Gramps, the Bernanke, Mr. QE, has issued a new decree. So let it be written: The FED has decided not to scale back the bond buying and intends to keep interest rates near zero until unemployment reaches 6.5%. He could of just said F-O-R–E-V-E-R or zero from here to infinity and beyond. You retired folks and people with some cash left are just going to have to get with the program and risk all in the equity markets. It’s for the greater good and Obama, too. Don’t sweat it when it all tanks. There is a spot for you on the big blue plantation where all boredom is amused. Once you go there you can’t go back.
There was one dissenting voice at the Fed. Esther George, from the Kansas City Federal Reserve branch said she was worried about the potential for inflation and financial instability. How Austrian of her and nobody cares as long as the inflation is in stock prices . . . until the inevitable and then they will.
Today, the markets made new highs, even as the Fed lowered its economic forecasts for this year and next year. What should be a downer is an upper as long the market makers and big banks can feast on more phony liquidity. It is all about them and their golden crumbs. The elites are poking main street Americans in the shorts and they lack the common decency to give us a reach-around, much less a hand-up. A government hand-out is more to their liking and to be sure, a slim majority of Americans voted for just that last November. You’re still reeling over that, aren’t you?
Looking ahead, the word is that the Bernanke is moving on at the end of this year. I think we need another name for this man who has “saved” us all. Former Fed Chair, Alan Greenspan was dubbed “The Maestro.” Of course, the wizards of finance now think the notes he played weren’t so sweet after all. I hereby christen Bernanke as “The Zero.” We shall see how that wears through 2014 and beyond.