Ignoring It Won't Make It Go Away: The Fed's Bubble Will Burst

[Brian4Liberty]

Ignoring It Won't Make It Go Away: The Fed's Bubble Will Burst

It's almost impossible to find a kernel of truth in the Empire of Lies. As is always the case, the outlook from the Federal Reserve is sunshine and rainbows. The President has the same erroneous view. But ignoring the biggest bubble that the Fed has ever created will not make it go away.

[oyarde]

True , but I am enjoying the good times . I have enough ammo stockpiled for when I have to defend muh can of beenie weenies.

[osan]

Actually, the bubble does not, in principle, have to burst. This is an important point.

If a bagel with cream cheese costs $12.31 trillion, that is nothing so long as incomes maintain a sufficient level of purchasing power. This is true in large part due to the electronic nature of most currency. Numbers in computers tell us how much Johnny Q. is able to buy on a given day, week, month... Because we have no money, the problems associated with money, as well as the benefits, are obviated in favor of a number that has no fundamental significance, save that people BELIEVE in what it tells them.

Mind is everything and so long as mind accepts currencies as they stand and purchasing power remains sufficient, the world keeps turning. It is the moment when the critical mass of no-confidence sets off a cascade failure of same that things will go south in a big way and people will begin killing each other, not to eat their neighbors' food, but the neighbors themselves.

So no, we are not in principle doomed to a burst of the bubble. Practically speaking, however, the odds are at least even in the best possible scenario. And so the admonition stands: be prepared and keep your powder dry.