Federal Reserve

Have you noticed how often the word unprecedented shows up describing Fed actions?

"In an unprecedented step, the Federal Reserve said on Wednesday it would hold interest rates near zero until the unemployment rate falls to 6.5 percent as it launched a new round of bond purchases to stimulate the economy."

This policy hasn't worked for four years, so let's keep trying it.

"The central bank said its commitment to hold rates steady until its new threshold was reached would hold as long as inflation was projected to be no more than 2.5 percent one or two years ahead and inflation expectations were contained."

Of course inflation is much higher than 2.5 percent, has been for a while, and will be for a long time. The Fed just lies about it. Shadowstats.com shows inflation running about 10 percent. It also shows the real unemployment rate at about 23 percent.

It seems hard to believe that the Fed could surpass QEInfinity, what it other call QEIII, yet this represents QEIV. I guess this is a matter of quantify versus bull-hockey. Bernanke only started QEIII a few month ago, but QEIV is a bigger program. I appreciate this analysis by real experts, but it's all QEInfinity to me.

This Fed flow chart is prefect because it's true.