Thursday, September 13, 2012

QE to Infinity

There is one big problem with the Fed's announcement of Open-Ended QE moments ago: it effectively removes all future suspense from FOMC announcements. Why? Because the Fed has as of this moment exposed its cards for all to see from here until the moment it has to start tightening the money supply (which may or may not happen; frankly we don't think the Fed tightens until hyperinflation sets in at which point what the Fed does is meaningless). It means easing is now effectively priced into infinity. -- Full Story, Zero Hedge

Straight talk from John Williams, a man you should subscribe to.

Fed Easing Aimed at Propping Banking System, Not Boosting Economy
- CPI and PPI Headline Inflation Highest Since June 2009
- Headline CPI Held at 0.6%, Instead of 1.0%, Due to Intervention Analysis?
- August Year-to-Year Inflation: 1.7% (CPI-U), 1.7% (CPI-W), 9.3% (SGS)
- Retail Sales Showing Consistent Pattern of Overstated Headline Activity Being Revised Lower in Following Month
- Monthly Production and Real Earnings Turn Down