Guest Post: Reality Is Breathing Down Bernanke’s Neck
by James Howard Kunstler
ZeroHedge.com
09/16/2013
Now that Syria has been disposed of – that is, indefinitely consigned to failed state purgatory – the world can focus its remaining attention on the almighty taper. We’re with those who think we’ll get a taper test. That is, the Fed will cut back ten or fifteen percent on its treasury bond purchases to see what happens. What happens is perfectly predictable: interest rates shoot above 3 percent on the ten-year and holders of US paper all the world round fling them away like bales of smallpox blankets and… Houston, we’ve got a problem. After a month (or less) of havoc in the bond market, and the housing market, Mr. Bernanke will issue an advisory saying (in more words than these) “just kidding.” Then it will be back to business as usual, which is to say QE Forever, which might as well be saying “game over.” One must feel for poor Mr. Bernanke. He’s tried to run a long-distance foot-race against reality and now it’s breathing down his neck near finish line.
The Rest…HERE
