—and promptly endorsed by unaminous vote the continuation of QE-2, under the rationale of “promoting a stronger pace of economic recovery.”
|More QE-2 steaming our way.|
Are Plosser & Fisher bidding their time? Are they siding with The Bernank in this first meeting of the FOMC, so that later their dissent when QE-3 comes to a vote is louder and has more resonance?
Or are they mealy-mouthed Obama Obfuscators, saying the grand and daring in public, then doing the timid and bathetic when it becomes time to decide?
One does have to consider that, were it not for QE-2, the Treasury would be unable to fund the Federal government. if the Treasury didn’t have access to those $600 billion the Fed is printing out of thin air, the price of Treasury bonds would collapse—the dollar itself might collapse. The monetization that the Fed is carrying out is now a necessary fix—a lot like a heroin addiction. And as everyone knows, you don’t go cutting off a junkie in the middle of getting his fix—he might die if you cut him off.
So maybe Plosser & Fisher recognize this?
Or maybe . . .
Hmm . . .
Fuckit: The Hourly G has $500 bucks says Plosser and Fisher—regardless of their public statements—will vote with The Bernank in favor of QE-3 (or an indefinite extension of QE-2), when the time comes this coming summer.