Rant of the Day

DON’T WORRY WE’LL PRINT MORE…

Now the Fed will print $1.2 trillion over the next year, which incidentally matches the annual Federal deficit. And the Fed has left the easing open-ended. (Yay!!)

In my opinion, the Fed’s announcement today assures two things:

1. Obama gets re-elected.  

2. The crash is going to be epic.

You heard it here first. 

The Fed is about to increase its balance sheet to $4 trillion from $2.8 trillion currently by the end of 2013. (Recall that in “Flexon Vale” I suggested the Fed’s balance sheet would eventually rise to $6 trillion before a major inflation struck in the late 2010s.) Mortgage rates will probably drop by another percent or so. It might lead to a few more refinancings but by and large, Americans are not not buying homes because of interest rates being too high. They’re not buying because they don’t have jobs. And QE to the nth power isn’t going to change that, unfortunately.

But you know what would?

How about a trillion dollar stimulus designed to transform our infrastructure from gasoline to compressed natural gas? How about we stop spewing THE WORST toxic fumes from our cars in the US while keeping an extra $300 billion in-country (from not importing oil) and create untold millions of jobs at home? Why not? I’ll tell you why we’re not going to do it. Because the oil companies have too much influence and Americans aren’t paying attention. But I know when they’re going to pay attention. When the prices of most goods—food, clothing, beer, housing, gas, everything—skyrockets and we’ll all look at each other and say, “No one, NO ONE, could have ever, EVER, seen this coming,” as the Fed announces it will fix the problem by printing even more.