Economy

The debt the Fed adds to the economy, the less impact it has.

"Because of the declining marginal utility of debt. When there is little debt, you can add cash and credit to a system and get a boost. The money circulates. The economy revs up. But the more you add, the greater the burden of debt becomes… and the less of a boost you get from it.
Finally, you've ballooned the Fed's balance sheet to $4.5 trillion and you're getting a measly 1% per capita GDP growth in return. And then… as in the first quarter of this year… the growth falls to near zero. All the "stimulus" since 2000 was a scam. It stimulated nothing but more debt -- which slows the rate of real growth."

The end is nigh.

"Economic growth is slowing. If we take inventory accumulation out of the statistics, real final sales are actually falling. When we look at the chart, it becomes clear that the almost steeply rising increase in credit in relation to the mediocre increase in real GDP cannot be sustained much longer. Either real GDP will have to shoot upward, or else the growth of credit must stall. There is no evidence that the first scenario is possible. When the growth of credit slows, real GDP is going to turn downward. Then credit will shrink, as it did in 2009."

It still is nigh.

They're already blaming the impending crash on a liquidity drought. Of course they are.

Investors dumping US stocks.