"Insanity [is] doing the same thing over and over again and expecting different results." - Albert Einstein
Ergo, "some financial industry participants" are as insane as Janet Yellen is:
While the Federal Reserve is poised to announce an end to its third round of quantitative easing (QE3) later this month, some financial industry participants already are urging the central bank to consider QE4, given global economic weakness and turbulence in financial markets.
Mohamed El-Erian, former CEO of Pimco, doesn't think too highly of the idea. "It is so predictable yet also so unfortunate," he writes in the Financial Times.
"The hurdle for such a policy step is high, and it should be if it is not accompanied by a more comprehensive policy response out of Washington."
Which is to say, dis-incentivizing savings and investment and incentivizing spending and debt have not generated the avalanche of prosperity that the Keynesian socialists guaranteed us it would, but has, instead, deepened and lengthened the Obama economic depression. The way out of which can only begin with a complete, 180-degree reversal of economic policy "out of Washington" from sclerotic statism and back to pro-capitalist, pro-free market, low tax, anti-inflation, small government, constitutionalist, job-producing, supply-side economics. Which Barack Obama will never allow, and he's not going anywhere for years and years to come.
Thus, though the plaintive begging for QE4 is madness, there is a method behind it. Call it "junkie logic".
The problem is that while QE4 would be designed to depress long-term interest rates, they already have dropped to near-record lows, El-Erian says.
The 10-year Treasury yield fell to a 17-month low of 1.86% Wednesday. It stood at 2.2% late Monday.
Who does that really benefit? Answer: The Obama Regime, both by keeping the price of U.S. government debt grotesquely low compared to the attached risk, and thus protecting the already-hemorrhaging federal budget from a tsunami of debt-servicing costs, and by propping up the bubblesque illusion of an economic "recovery" by fueling an utterly unsupported bull stock market that is running out of steam in any case.
It's a gigantic house of cards erected for public relations purposes. And if interest rates start acceleratedly trending upwards, it gets tossed to the proverbial four winds, and every economic wall comes, well, "crashing" down - or the scenario high on the list of "fundamental transformation"-clinching "Final Crises" for The One to exploit to finish off America and bring the Obama Doctrine to full fruition.
In a nutshell: There are no viable options and no way out. Either we collapse sooner or we collapse later, but collapse is inevitable.
I'll ask it again: Still think Barack Obama is "incompetent"?
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