Comments on: Bonds, risk and Bernanke’s intentions http://blogs.reuters.com/james-saft/2011/02/10/bonds-risk-and-bernankes-intentions/ Tue, 24 Mar 2015 16:54:45 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: HealingKnife http://blogs.reuters.com/james-saft/2011/02/10/bonds-risk-and-bernankes-intentions/comment-page-1/#comment-503 Fri, 11 Feb 2011 01:10:57 +0000 http://blogs.reuters.com/jim-saft/?p=308#comment-503 Mr Bernanke counts on diluting the huge federal debt by exporting inflation to the creditors with QEs and it partially works only as long as the countries have faith in $ as a last resort.
The success of these measures resulting into of polarization the two economies: the real one and the financial one, which created inflated equity values is unsustainable while every easing will just widen the gap between the nominal equity values and the real economy´s purchasing power.
Its a ponzy scheme, that makes Mr Madoff look like a happy amateur compared to this, what´s going on on the global scale.
Reckless federal spending shows little signs of improving, so winding back this QE on the right time looks on daily basis more and more remote and like a tooth fairy.
I bet that this has not gone unnoticed in many camps including creditors and they already must have bitter antidotes planned, when this global game turns sour.
So the success of the bluff cannot be in any way guaranteed.
The history books don´t tell about any country, which could create wealth from nothing by money printing.
Would this alchemist creation be possible, Zimbabwe ought be the richest nation on the Earth.

Rule number:
NEVER UNDERESTIMATE YOUR ENEMIES

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