Paul Craig Roberts-U.S.moving to a terrible catastrophe

Paul CraigThe news maker of the week was the Fed that shocked financial markets with the announcement that there would be phased out. What do you think? For the Fed situation is as follows. All markets, as well as the big banks and their ability to pay are entirely dependent on the Fed’s purchase of bonds. If they will not buy bonds, rates rise, the value of debt instruments will fall, banks will go bankrupt again, the bond market and stock collapse. So they can not turn easing, because the whole system is tied to it. Another aspect of the trap into which they fell, is that the longer they will keep easing, the faster the time will come when the rest of the world will just lose all confidence in the dollar. Continue reading “Paul Craig Roberts-U.S.moving to a terrible catastrophe”