Shooting Up With Play Dough

In a single day, the economy has mainlined another trillion - give or take - by virtue of the FED's commitment to purchase long-term treasuries and mortgage backed securities. As a result, the FED's balance sheet will grow to over $3 trillion after already doubling since last year.

This desperation play comes after conventional manipulations (there's a term to reflect on!) like lowering key interest rates to zero failed to halt the slide. The stock market reacted enthusiastically, demonstrating once again that smoke, mirrors and emotion are the only forces producing gains in this climate.

This is beyond the pale. It's the creation of another trillion out of thin air, and is nothing more than an addicted parent robbing its own children for a fix.

Uber-inflation awaits. I never thought I'd say so, but I miss the days when the economy was merely a house of cards...

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