There’s an old joke, “The firings will continue until morale improves”, that is told as a form of gallows humor when discussing a company on the ropes. Helicopter Ben has re-written the joke in terms of Fed Policy.
The Fed on Thursday said it would pump $40 billion into the U.S. economy each month until it saw a sustained upturn in the weak jobs market. (Read more: Fed’s ‘QE Infinity’ — Four Things That Could Go Wrong)
After pumping two million million (a trillion is a million million, I like to write it this way, periodically, to remind myself what a huge number a trillion really is.) into the economy and getting scant return, he’s at it again. Kind of reminds me of another classic phrase: The definition of insanity is doing the same thing over and over again while expecting a different result.
Mr. Chairman. The problems that our economy faces are not monetary. They are fiscal and governmental policy-based. You have fouled up the market so badly that no one knows what the actual price of risky assets are anymore. Get out of the way, and let the folks in Washington flop around until they develop the right mix of legislators to simplify the tax code, reduce regulatory burdens, and re-establish the gold standard.