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Monday, 21 April 2014

Worst Financial Bubble Ever - Worried Yet?


The Potential Bubble the Federal Reserve Cares Most About     


In the aftermath of the 2008 financial crisis, economists debated whether the Federal Reserve should be involved — at all — in pricking bubbles. The housing bubble, and subsequent financial crisis, had led to a disastrous result: Hundreds of banks had failed and millions of Americans had lost their jobs. At the time, many still believed the emergence of future bubbles could only be prevented through financial regulation, and not through interest rate hikes.

 Federal Reserve Board Chair Janet Yellen arrives at a news conference March 19, 2014 at the Federal Reserve Board in Washington, D.C.








Today, however, as interest rates remain at historically low levels and are expected to stay low at least into next year, there is growing concern among investors, economists and central bankers that a new bubble has emerged, and that increased regulation isn’t enough to stop it. Led by a powerful Fed governor, there’s a growing call for the Federal Reserve to raise interest rates to prevent this bubble from growing.




So what bubble are we talking about? It’s not the one you might expect.

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Comments
This is very bad for future generations as there is no connection any more between money and a physical capability to deliver  tangible value of any sort over time. Sowing the seeds of hyper-inflation and thus complete debasement. This also puts more and more pressure on the US hegemony to continue geo-political  engagements in order to protect natural  resource interests; thus what is left of the  dollar's physical value and its image and status as a reserve currency.

Coming generations are hence unwittingly being conscripted into future conflicts around the world as a consequence of these policy actions. The total system's inertia now however is  so great that there are almost no other choices.  When this ride began, there was just no way to disembark halfway or otherwise . Perhaps.

On reflection one might ask - when did it begin? Why?



Because there... ain't no stopping us now!    



Investors' Insights
April 21, 2014 


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