Bernanke's Mystery SOLVED!!

Bernanke’s implied mysterious exit from the FED’s current dilemma of endless QE’s, (COMPLETE AND TOTALLY INSANE MONETIZATION OF ALL FEDERAL GOVERNMENT** AND BANK JUNK DEBT INSTRUMENTS), is no mystery, at all: 

That is because as a VERY DIRECT result of the FED’s balance sheet exploding to over $3,000,000,000,000 (it took from 1913 to 2008 to get to $800,000,000,000) and evidently going to over $7,500,000,000,000, we the American people are screwed and are getting more and more screwed everyday.

Reason?

As anyone, who shops for anything or pays their utility bills, insurance premiums, etc. etc., clearly sees that their Dollars are becoming worth less and less and less and less every day (does anyone out there still believe the US CD's reported inflation rate of ONLY 1.5 to 2.2%??), until all $1, $5, $10 and $20 Dollar Bills will finally be totally worthless.

For, in the near future this horrendous and lethal and now unstoppable rise in inflation will ineluctably create the confluence of economic forces that will lead to the coming “Bond Bubble’ EXPLOSION and the end of things economic, as we understand them.

Are you and your company ready for these things?

** By our calculations, the FED has purchased MORE US Government debt in the last year than THE US GOVERNMENT ISSUED, and promises to do so, ad nauseum, into the future quarters and years.  And this is debt monetization of the US debt beyond any parameters that were proposed by the wildest and craziest of the FED's detractors!!!!

 

Bernanke Provokes Mystery Over Fed Stimulus Exit

Bloomberg; By Caroline Salas Gage & Joshua Zumbrun - Mar 11, 2013 4:42 AM ET

Feb. 27 (Bloomberg) – “Federal Reserve Chairman Ben S. Bernanke testifies about the central bank's policies and the U.S. economy. He speaks before the House Financial Services Committee in Washington. (This is the second part of the question-and-answer portion of Bernanke's testimony. Source: Bloomberg)
The Fed may decide to hold the bonds on its balance sheet to maturity (1) as part of a review of the exit strategy Bernanke expects will be done “sometime soon,” he told lawmakers in Washington on Feb. 27. This would help address concerns that dumping assets on the market will lead to a rapid rise in borrowing costs. (2) It also allows the Fed to avoid realizing losses on its bond holdings as interest rates climb.
Removing asset sales from the exit plan Fed officials agreed to in June 2011 means the central bank would stop prices from accelerating by relying primarily on its ability to pay interest on the cash it holds for banks. (3) Given that the Fed’s total assets have reached an unprecedented level of more than $3 trillion, leaving them untouched (4) when the economy picks up may stoke inflation, according to Dean Maki, chief U.S. economist at Barclays Plc in New York. …”

(1)        The FED actually has no other choice, because the world has stopped buying our paper.

(2)           It is the rise of inflation that will END this insane party and not the rise of interest rates, because interest rates will FOLLOW the rates of inflation and not visa versa!!

(3)            Totally erroneous assumption because of #2 above!!

(4)      This proposition is a totally ass-backwards assessment, because these $83,000,000,000 of junk bonds, purchased EVERY MONTH, from the stupid and BAD Banksters are NOT REALLY STERILIZED on the FED’s Balance Sheet; remember, the Bad Banksters are allowed to exchange their now worthless $83,000,000,000 worth of worthless Mortgages for brand new liability FREE electronic entry MONEY, as in DOLLARS!!  So, it doesn’t really matter that the $83,000,000,000 of monthly purchases of worthless Mortgages are held by the FED because that newly issued monthly infusion of $83,000,000,000 goes directly to the BAD Banksters, that  then allows the BAD BANKSTERS to go right out and buy STOCKS!!  Do you guys get it yet?  And that is precisely why the DOW JONES is going to roughly 18,500 in mid to late 2015, if not higher!!!