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One of the tactics used to marginalize preppers (and sentient people who understand economics) is the state of the economy. We are accused of fearmongering and asked (actually ridiculed) when will we stop saying the sky is falling.
As the economy collapses, the stock market is reaching new highs through the Fed’s POMO policy and the economic recovery is trumpeted by the media and administration. When will this charade finally be exposed? When the Fed stops printing money. Eighty-five billion dollars of devaluation every month cannot continue indefinitely. And now it appears that reality can no longer be covered up as the Federal Reserve is about to announce an end to quantitative easing over a period of time yet to be determined.
What is the Fed’s strategy?
“I don’t want to go from wild turkey to cold turkey,” Richard Fisher, president of the Federal Reserve Bank of Dallas, said in an interview Friday.
When the timing and scope for winding down this turkey is unveiled and the printing presses are stopped, we will see a very likely trigger for our future.
David DeGerolamo
Fed Maps Exit From Stimulus
Federal Reserve officials have mapped out a strategy for winding down an unprecedented $85 billion-a-month bond-buying program meant to spur the economy—an effort to preserve flexibility and manage highly unpredictable market expectations.
Officials say they plan to reduce the amount of bonds they buy in careful and potentially halting steps, varying their purchases as their confidence about the job market and inflation evolves. The timing on when to start is still being debated.
The Fed’s strategy for how and when to wind down the program is of intense interest in financial markets. While the strategy being debated leaves the Fed plenty of flexibility, it might not be the clear and steady path markets expect based on past experience.
Officials are focusing on clarifying the strategy so markets don’t overreact about their next moves. For example, officials want to avoid creating expectations that their retreat will be a steady, uniform process like their approach from 2003 to 2006, when they raised short-term interest rates in a series of quarter-percentage-point increments over 17 straight policy meetings.
h/t Zerohedge
