'We instead these days see unprecedented government liquidity injections directly into securities markets, with resulting asset inflation and myriad distortions. In the real economy, massive federal deficits and ultra-low interest-rates have inflated incomes, corporate cash flows and earnings. Inflating asset markets and Household Net Worth drive sufficient consumption to sustain a deeply imbalanced economic structure.'<blockquote>'An economy on firm footing would be one demonstrating at least a reasonable balance within the real and financial sectors. One would hope to see sound money and productive Credit financing capital investments throughout the economy - liquidity/spending power entering the system primarily in the process of financing economic wealth creation in the real economy (as opposed to financing consumption and asset speculation).
We instead these days see unprecedented government liquidity injections directly into securities markets, with resulting asset inflation and myriad distortions. In the real economy, massive federal deficits and ultra-low interest-rates have inflated incomes, corporate cash flows and earnings. Inflating asset markets and Household Net Worth drive sufficient consumption to sustain a deeply imbalanced economic structure.
Not unpredictably, after about five years of unmatched debt monetization and liquidity injections, the Federal Reserve today struggles with even the most timid reduction of monetary inflation. Perhaps Fed officials appreciate the dependency U.S. and global economies have developed to speculative and inflating securities markets, along with the dependency inflated markets have to ongoing Fed and central bank liquidity injections.
..
Liesman: “You repeated the remarks of chairman Bernanke from June saying that a taper was likely to happen later this year. Is that your opinion at this point, still?”
Dudley: “I certainly wouldn’t want to rule it out. But it depends on the data. And the thing that we really want to emphasize is that it’s driven by data, not by time. So when the chairman said later this year - that was conditioned on the economy behaving in a way in line with the Fed’s forecast. So if the economy were behaving in a way aligned with the Feds June forecast, then it’s certainly likely that the Fed would begin to taper later this year. But whether that's going to happen or not remains uncertain.” '
- Doug Noland,
Z1 and the Doves, September 27, 2013</blockquote>
Context<blockquote>
((Monetary) bureaucracy) - '..a historic global Credit boom..' - 'They are delusional.'</blockquote>