“I don’t think the Fed can get interest rates up very much, because the economy is weak, inflation rates are low,” Bernanke told the House Financial Services Committee.
“If we were to tighten policy, the economy would tank.”
(Courier Mail)
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.
…
Think it through folks.
Then get ready, because it’s coming.