I Told Me So…

Last year the Federal Reserve announced they were going to taper QE (reduce money printing). For those of you new to the party they are printing about 3 billion dollars a day (about $10 per day per person).

Most people interpreted this as good news that the economy was recovering and assumed the taper would happen as announced.

I said to myself, no chance. They can’t slow QE because the physics and mathematics of our predicament will not permit it.

Yesterday the new head of the Federal Reserve announced that their plans to taper are now flexible which is code speak for “we will not taper if doing so would cause GDP and/or asset prices to fall”.

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