Ten thousand fleets sweep over thee in vain;
Man marks the earth with ruin -- his control
Stops with the shore; upon the watery plain
The wrecks are all thy deed, nor doth remain
A shadow of man's ravage, save his own,
When for a moment, like a drop of rain,
He sinks into thy depths with a bubbling groan,
Without a grave, unknell'd, uncoffin'd, and unknown."
George Gordon Lord Byron, The Dark Blue Sea
I have had another discussion about economic and world events with Ilene of MarketShadows. An excerpt is included below.
The financial engineers have taken us with great confidence into uncharted waters. Not to save us, but rather to try and bluff out their blunders and mad schemes.
It is a story of overreach, deception, and betrayal, which is the oldest story from the earliest times.
As Far as the Eye Can See: Stagnation
An Interview By Ilene with Jesse at his Cafe
Ilene: Jesse, thank you for doing another interview with me. I’m continually learning from your rational, and brilliant, insights into the markets, and more importantly, the human nature upon which they are built. It’s always a pleasure to explore your thoughts as events unfold.
Previously, when we discussed ‘flations, you believed we were heading into a stagflationary period. Not hyperinflation–you didn’t think prices would spiral up uncontrollably. Has the Fed’s new QE-Infinity program changed your mind?
Jesse: No, not at all, QE infinity was always within expectations, because of the way in which it has been constructed, in addition to the failure of the fiscal side of the house. The President and the Congress control fiscal policy, and the Fed controls monetary policy.
“Fiscal” is how the government obtains and allocates money. It also involves setting priorities, tax policies, tariffs, etc. Fiscal policy is failing to do its part to reform the system that caused the financial bubble and collapse in the first place, and the Fed is manipulating monetary policy and its regulatory powers largely in the service of the financial sector...
Read the entire interview here at MarketShadows