From The Daily Capitalist:
... There are two factors which lead me to believe that it is more likely that we will see more quantitative easing (QE).
While Shostak concludes that the Fed is wary of price inflation (that they are causing) and that this will deter another round of money pumping, I think the primary motivation behind QE is unemployment, not price inflation.
The consequence of taking their foot off the money pedal will lead to higher unemployment and I do not think this is politically acceptable to the Fed or to the Administration. I think they will institute a new round of quantitative easing (QE3) because politicians will demand that the Fed "do something."
Which is, of course, the worst thing they could do. It will lead to...
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More Cruxallaneous:
This should scare everyone in America
Pimco's El-Erian: "Financial repression" coming to the U.S. soon
Master contrarian Jim Grant: "There will be a panic and it'll seem as if the world's ending..."
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