Forbes – Fed Readies Reverse Repo Hoping To Soak Up QE Cash

17 Dec

Everyone, it seems, loves asset inflation. What could be more satisfying than watching the value of your home, your stocks, and your 401(k) soar, especially after the economic beating from the mortgage meltdown? Monetary illusions that pass for prosperity buy Washington time to tackle other Big Problems, like providing affordable health care to everybody, eliminating income inequality, bringing peace to the Middle East, and saving the planet from global warming.

But woe to the powers that be if the asset bubble pops and rampant inflation follows. Paying more for gas, groceries, and rent as wages stagnate, housing prices collapse, and retirement savings erode makes voters grumpy. This is a threat to incumbent politicians—especially if they have not meanwhile solved the aforementioned big problems. They can try to shift blame to mysterious forces beyond their control, but this is becoming increasingly difficult as mainstream media loses its ability to enforce Washington orthodoxy.

To read the rest of the column click here.


One Response to “Forbes – Fed Readies Reverse Repo Hoping To Soak Up QE Cash”

  1. Alastair Sweeny January 8, 2014 at 11:20 am #

    “And while Zite still pretends to apologize, Ive given a hundred thumbs down to Salon and there it is back in my face every day. I am left wondering why.”

    Dear Bill:

    Probably because Zite is now tracking you, and selling access Heres a copy of our latest:

    and our web support site:

    PS: 20% of Android apps contain Malware.

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