Photo Credit:Joshua Roberts/Bloomberg News
By Catherine Austin Fitts
Ben and the FOMC spoke today confirming that they will continue monthly quantitative easing at the $85 billion level. There is no taper in sight. S&P up some. Bonds up some. Gold up some. China up a tiny bit. But not a lot. That is because the fiscal side of the house is still going to have to do something. The discussion of what picks up again in September when Congress returns to finalize appropriations for the October 1 fiscal year and address the debt ceiling.
It is hard for market participants to fathom that the S&P and dollar can continue strong in the face of fiscal fundamentals. The fiscal situation is coming to a head – more so in 2014 and 2015 than this year. The leadership who threw in the towel in 1995 and directed the shift of funds out of the US accounts in the mid-1990s is reinvesting in North America. They are just not bringing along the legacy boomer retirement liabilities. Those have been “left behind” in the governmental legal entities. Significant reinvestment will give some strength to the equity markets. However, with the bailouts and now Ben having shredded up the fraudulent paper that financed the financial coup, the lowering of the fiscal boom on boomer households is descending upon the American people.
Perhaps the announcement today that Harvard scientists can direct animal thoughts should give us all pause about the future of the Fed’s role in centrally managing markets. Indeed, who needs Fed intervention when the NSA can simply intimately intervene in retail and institutional investor thoughts through their smartphones?
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