By now, 6 years after America’s grand experiment in recreating Soviet-style central planning started, it should be clear to all except that subset of Homo Sapiens also known as “economists”, that the Fed’s QE is not helping the economy. In fact, it is merely boosting wealth inequality, leading to asset price (hyper)inflation, middle class devastation, and its inevitable outcome is yet another asset bubble can which will need to be kicked eventually leading to even greater economic misery, greater inequality, and more warfare. In fact the two final outcomes of more QE are becoming increasingly: broad hyperinflation a lathe Bernanke chopper, which implies a failure in the reserve currency, and rising social conflict, which culminates in a French revolution-type social revolt when the poor finally roll out the guillotines.
The above is also largely clear to most, except the members of the Fed of course. So it is for their benefit that we present what two people who actually work in the markets for a living, something that nobody in the Marriner Eccles can say, have to say about QE. We can only hope someone in the US money printing department reads it, but we doubt it.
First, here is David Einhorn, who spoke at the annual, and amusingly misnamed, hedge fund gala known as the Robin Hood Investor Conference, talking about Fed policy:
This post was published at Zero Hedge on 10/21/2014.
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