Still adjusting to my blood pressure medicine. Since starting it two weeks ago I find I am very tired and my brain is slow. I am pretty sure I will adjust and when they tested me today they saw real improvement although more tests to come. In the meantime I thought I might make a couple of comments.
In January the Federal Reserve will be getting a new chairman as Mr. Bernanke leaves. There are three ways this could go down. Firstly, the Fed might cut back on their bond purchases in September, three months before he leaves giving his replacement an chance to decide to continue the QE and say he wasn't responsible for the consequences. Secondly, his replacement can immediately reduce the QE and claim he never was a supporter in the first place. Thirdly, he can wait three months and then just end it. Those are all distinct possibilities.
Here is what we should keep an eye out for even more that Wall Streets volatility while this is all being discussed. Lets say that the Federal Reserve stops QE in any of the three scenarios I outlined above. Well, they are not the only ones doing it. China, Japan, the European Union and England are all actively having their central banks do just about the same thing. In fact, the Federal Reserve has loaned hundreds of billions of dollars to foreign banks. All of these currencies have been commingled. What happens if we stop QE; but, the other countries continue or vice versa? The stock market is just one market, what happens when the currency markets fail?
This is a video talking about the rigging of the aluminum market and QE. YouTube - Keiser Report Royal Goldman Household E475
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