The Reason The Fed’s Game Will End In Detonation
by Karl Denninger
TheMarketTicker.com
2013-07-17
You might not have caught it, but if you didn’t you weren’t thinking.
One of the last questions and answers given by Bernanke was “what if rates rise?”
His answer? The economy will tank.
Did that tell you everything you needed to know?
It should have.
He can’t exit.
Not now, not ever.
Which paradoxically, means he will exit because if an outcome is inevitable then the longer you wait and the more distortion you pump in before it happens the worse it is and he cannot avoid owning the outcome either way.
There are those who argue that this, along with the market having a “temper tantrum”, means that The Fed will never exit QE.
They’re wrong.
If you have evidence for this then go ahead and present it.
If all you have is a bald assertion then go run it over at Daily Kos, because if you are a flat-earth sort of person who denies math you lack the capacity for intellectual debate.
Think it through folks.
Then get ready, because it’s coming.
