FED's ZIRP is the 20,000 lb Gorilla in the closet

I almost forgot to include this article from yesterday that is yet another example of the MSM reporting truth but in an extremely UNDERSTATED fashion.  They don’t want to scare the ‘Sheeple’ on the testy and risky subject of the REAL inflation rate - just yet.

The MSM will have plenty of time for that in late 2014 and early 2015, with the DOW at 16,500 to 18,000 and Caterpillar moving its plants to China and ALL cars leased because NOBODY can afford to buy them (we are almost there now) and your local newspaper at $2.50 for the weekly and $5.00 for the Sunday edition and gasoline at $12 a gallon and bacon at $16 a lb and bread at $8 a loaf and a nickel pack of gum at $2.50!

That’s when the truth will be so very, very obvious to even the Deaf, Dumb and Blind ‘Sheeple’ that it will then be the time to “Pull The Curtain“ on this ‘Monkey Show‘ of pure fantasy of a slow economic recovery (NOT!) and very little inflation ( A PURE LIE)!

Einhorn Says Fed Rate Stance ‘No Longer Useful,’ Risks Inflation

Bloomberg;  By Noah Buhayar - May 1, 2012 11:56 AM ET

“Hedge-fund manager David Einhorn said Federal Reserve policy intended to stimulate the economy and create jobs is “no longer useful” because it risks inflation.

Investors including Pacific Investment Management Co.’s Bill Gross have said Fed policy makers may be adding the risk of future economic disruption. The central bank has kept interest rates near zero since late 2008.

… “This enthusiasm is tempered by our continued concern about the structural sovereign-debt problems in Europe and Japan, a slowing Chinese economy, and high oil prices and general inflation connected to the Fed’s continued insistence on maintaining an emergency zero percent interest-rate policy  (This is the FED’s ZIRP), which we believe is no longer useful or effective,” Einhorn said on the call.

Fed policymakers, led by Chairman Ben S. Bernanke, reiterated their view April 25 that conditions may warrant “exceptionally low levels” for rates through at least late 2014. The central bank has kept its target federal funds rate between zero and 0.25 percent since December 2008.

… California-based Pimco’s website today that Fed policies including debt purchases will cause “gradually higher rates of inflation.”

The “acceleration of credit via central bank policies will likely produce a positive rate of real economic growth this year for most developed countries, but the structural distortions brought about by zero-bound interest rates will limit the growth,” Gross wrote.