Maggie's Farm

I don't believe the Fed has a plan for an end game. I do think they have hopes. They hope something will happen that would either: A. crash the economy thus getting them off the hook, or B. Revive the economy thus getting them off the hook. Of the two I think scenario "A" is most likely. The trigger could be almost anything. It could be a false rumor crashing the stock market or a oil embargo in the Middle East, etc. But the underlying problems of inflation, an artificially low interest rate, over regulation by the government, insurmountable national debt, out of control federal spending, cities and states in actual or ignored bankruptcy, etc. will be what destroys the economy. Arguably we are already in a great depression that began in 2009. It started as a recession but the congress and the president saw it as an opportunity to spend and bring home the pork so they followed their Keynesian beliefs into the depression. Now the food lines are SNAP, the homeless are section 8, the unemployed are on extended and perpetual unemployment. So we don't have the visual of long lines waiting for handouts but they are there being hidden by borrowing $1.5 trillion a year and printing another $1 trillion. The Fed had the tiger by the tail, they can neither let go nor hold on for much longer. They are desperately hoping that the tiger is distracted by something out of left field so they can avoid blame for what will happen. But the U.S. cannot avoid it's fate. The economy will crash. When, exactly what triggers it and how bad will it all be are yet to be decided.