The Demise of QE-2
Speculation and QE-2 seem to go together as well as do a horse and buggy.
Or is that …like a 1.64 Trillion Dollar deficit and a rather conflicted Federal Reserve?
Or is that like a 3.7 Trillion Dollar Budget and a rather conflicted Congress?
In view of the administration’s disdain for the express will of the people, such as is manifestly more than abundantly clear last November…the question remains …whether or not QE-2 is to go …or to stay.
If QE-2 is extended beyond the June 30th deadline, will it subsequently be supplanted by what conjecture rather suggests may become QE-3? This is anybody’s guess …or, is it?
Unlike what could otherwise be considered a deep black secret …the demise of QE-2 is anything but what was treated like a subject which is beyond top-secret.
Never the less, whether QE-2 is to be extended and stay or go …is something which Federal Reserve Chairman Ben Bernanke is surprisingly now seemingly …rather obligated to disclose openly as was the case in his testimony before the likes of Congress today.
But the mention of his disclosure regarding QE-2’s demise was merely but one part of a discussion whose broader context …included fiscal responsibility …and tax cuts.
I believe that the part of the discussion which touched on QE-2 was merely meant to satisfy the likes of a more than entitled curiosity …whose itchy ears may be looking for ammunition to feed a more critical spirit …of the likes of one Senator Ron Paul among others.
So, not surprising is it that Ben Benanke all but put this issue squarely out in the open ahead of the other aforementioned aspects of the same discussion.
And in tabling this matter’s question amongst the other equally weighty issues; Mr. Bernanke’s offered a lesser significant answer only to …all but put America’s dirty laundry out on the same table …along with his answer regarding QE-2.
By doing so, the matter of QE-2’s open and candid nature only served to contrast the size and the priority and order of the greater issues …namely the budget and spending.
So, in speaking candidly …Mr. Bernanke more than suggested that the otherwise rather iffy questionable matter of QE-2’s end is a subject OPEN for debate in an argument which hangs on a basis as to what extent any movement in the price of oil may pose a negative impact and significantly threaten to stall a delicate U.S. Economic recovery which is beleaguered by debt and spending.
Well, I declare! If that isn’t a genuine example of original frontier gibberish! What more could the likes of one Ron Paul need to explain the nature of these multidimensional threats.
Certainly, any other Texas oil man could see what the chairman was talking about.
So, if you are a gambler, I would have to look high and low to find a better invitation whose host could build a better environment whose welcome could usher in higher oil prices any better than his discussion of QE-2’s planned retirement date.
Let me explain.
If you (Ben Bernanke) claim that QE-2’s phase out depends on the price and impact of oil on the economy; then is not this open declaration the same as …laying your cards out on the table …or does the President’s budget trump the chairman’s honest candid openness …any more than Congress’ unwillingness to engage spending cuts and or any other viable means to build up and stimulate this economy?
In terms of deceit, I do not doubt the validity of Mr. Bernanke’s open answers.
The Senate Banking Committee members demanded honesty and the Senate’s Banking Committee members got such …save Senator Pall.
Yet, for all Ron Paul’s vinegar and piss, Bernanke handle all of the senator’s questions rather more honorably and with all honesty.
This is more than what I can say for some U.S. Senators.
Maybe, Ron Paul could and should work on the President for such candid honest responses …the definition of a dollar not withstanding.
Regardless, if …in offering his open honest assessment regarding when QE-2’s would be wrapped up, Mr. Bernanke’s frank comments may have committed an error.
As such …it might have served Mr. Bernanke in a better purpose to have kept his cards closer to his vest.
Never the less, as long as Congress is intent to deliberately avoid spending cuts and exercise fiscal constraint …I say; why not offer a just, open honest contrasting assessment of what all the more characterizes the all inclusive comprehensive composition of this crisis’ urgency.
And so in fully offering a comprehensive summary of all the items which constitute what is more likely …to impact and contribute to build the mess of this crisis’ debacle …the lack of regard for these other factors’ responsibilities are those whose oversight and accountability places the opportunity to take responsible action across all the branches of the U.S. Government.
Such as his disclosures were; they seemed to be rather like the call for actions like those who went to the polls last November to speak and seek new blood …new representative who would seek to serve with greater esteem …the will of the American people.
In the spirit of an open-door-policy (even on matters which affect national security) …by pre-signaling the other players on the entire planet earth what is in your hand …does not such subject efficient stable economic recovery in jeopardy all the more?
In view of greater fiscal pressures …like those from the presidency and Congress lack of fiscal responsibility …does not the open character of such a candid disclosure …rather more cement the Fed’s commitment to a monetary policy whose opportunity to anticipate any other expectation is rather limited in nothing more but its single commit to pursue a still weaker dollar policy …and hence …perpetuate QE-2 towards QE-3 if Congress does not heed his many other warnings?
Such as it is; Congress lacks the resolve …
The President lacks the resolve …
And am I to understand that the Senate Banking Committee should hold Ben Bernanke with any less or lower level of contempt in disregard that they are currently offering the American people?
Honestly, what more could one expect in an atmosphere where a deficit riddled budget is fraught with spending habits whose cuts are gone wanting in spite of a rather more august American neglected will gone begging …all amidst the absence of a rather more robust pursuit of organically grown private sector solutions.
There it is Ron Pall. The question as to which came first; the chicken or the egg.
So you can educate your constituents, the answer no longer rests solely on the shoulders of the Federal Reserve Chairman.
Any more questions …like blame and shame need only be taken up with those who are slinging it out …those who have and are still merely in terms of the need for still more debt …speed not withstanding …serving only to make Ben Bernanke’s job more difficult with each passing day wasted …gone without a true resolve to better serve the will and interests of the American public.
So, please Ron Paul, take it up …not with the Federal Reserve; take it up with your colleagues …and take it up with your president instead.
I for one, will take you up to a higher authority …for I pray for you that God would grant your eyes to be opened for starters …that the eyes of your understanding may see what demands you make on him are the demands that America has made of you and your colleagues alike to share …not in shame and blame; but in opportunity …incentive …solution and rewards which are earned earnestly in honor and respect.
I have only one more thing to say to Ron Paul; I pray God’s speed for you according to the honesty of your fight in your attempts to make the needed sacrifices the reality of all potential possibility …those which will accrue from fiscal accountability by and through measured terms of spending cuts.
God speed to your colleagues efforts …while they …at the same time …craft and offer America something tangibly substantial which would provide incentives and opportunity to organically stimulate the private sector first.
And I pray for the President that, cooperatively all his efforts make for the sort of leadership which is lacking from Washington these days.
I mean to say; just because QE-2 end-date’s final day is on the calendar …that doesn’t necessarily make its certainty any more credible.
This fact’s reality is a certainty which is more compromised …not by the challenge which oil’s impact on the economy presents, but by a far greater margin …the equally compromising threat presented by an absent willingness to compromise and sacrifice on the budget.
But what really plagues and threatens the stability of a self-sustaining, continued economic recovery is the equally absence of a plethora of a wide variety of any number of a far more promising private sector solutions.
Let’s face it; this nation runs on tax revenue; other wise it runs into the ground …the ditch dug by debt. Therefore America’s government can not abandon the private sector unless to big is the failure this administration is willing and openly inviting.
What else is there which has greater promise to reduce America’s dependency on debt?
Is America will up to allowing the private sector the opportunities it needs in order to be up and about …getting busy and with its share of incentives? Is America busy in the pursuit of developing a more workable private sector solution?
Or is America preoccupied with just another beat-down de’jour.
In view of an atmosphere which lacks resolve and clear leadership …what else can one expect from all the loose Fed-speak today?
When Congress, the administration and the Fed are taken altogether; does not such serve to send a clear signal to traders?
Is not this all more or less a green light …whose inviting is more than speculators and traders would need …placing a good deal of open interest in the options markets?
Honestly, what is there which would be more prepared to stop this sort of speculation’s rather open invitation?
Maybe the Ben Bernank has a card he’s not shown …namely a surprise, rate hike.
That would catch speculators holding the bag …Huh?
Yeah! Like that move is not well enough fraught with enough compromise as is the president’s deficit …the debt load …and the need to keep rates low just to be able to service the mounting load’s growing burden.
Therefore, I rather doubt you would be able to count on Ben for a surprise rate hike anytime soon …not before the end of QE-2’s demise.
So, in the meanwhile, I would not be surprised by anything which would deter speculators from taking advantage of a far more certain weakening of the dollar …all resolve to organically stimulate the economy …while demonstrating fiscal responsibility equally abandoned.
Therefore, Mr. Bernanke’s rather frank and candid clear disclosures are an open-door invitation which may propel oil and commodity prices still higher.
Then, thank you Ben Bernanke for leading the charge in driving the price of oil higher in the form of your indirect, self-fulfilling statement …a conditional operator aided all the more by the tax-starved demands of a budget which has “…Feed Me Seymour …â€ written all over it.
Congress wouldn’t have it any other way.
But, America can’t fault Ben Bernanke for not being able to keep his cards closer to your vest. That was the Senate Banking Committee’s open door policy, yes?
And that’s American National Security …cards on the table …out in the open …just like the poker player Ron Paul likes, Yes?
Oh, well; where do we go from here now that Bill the cat’s out of Ben Bernanke’s hat?
QE-3, is that where?
Opps! That’s a lower dollar still …which translates to higher still commodity prices.
Is that what Ben Bernanke was hire for …namely inflation?
Oh, I am sorry; he was hired to avoid depression.
But, in either case …be careful for what you ask for …for I see it raining …like a monsoon …morning …noon and night.