Last week, Federal Reserve Chairman Ben Bernanke said he did not see the need at this time to continue any real form of quantitative easing, as inflation was signalling a sharp rise in prices. The markets reacted accordingly, and dumped both equities and commodities, and the dollar quickly gained strength across the board.
However, a Keynesian is a Keynsian no matter how much they try to stick to a 12-step program, and just as quickly as the central banker said no to QE infinity, a spokesperson for the institution came out today and said that QE could still be in play, only in a more steralized form.
Steralized form? Should we now refer to Ben Bernanke as Dr. Evil, MD?
- Fed Officials consider "sterilized" option for Future bond buying
- Operation Twist Reprise, QE Other Options For Fed Bond
- Still Unclear Whether Fed Will Launch Another Bond-Buy – Wall Street Journal via Zerohedge
Of course, the markets reacted postitvely to the thought of more booze to keep the party going, and any economist with half a brain can see that Dow 13000... heck DOW 10000+ has simply been tied to trillions pumped into the monetary system by the Bernank bartender.
If the markets cannot stand on their own for even a WEEK without Fed stimulus, then the hopium dream that America is in recovery is better left to those ignorant fools who desire the Blue Pill.