Economic charlatans like Paul Krugman is the reason the US Economy finds itself on the brink of disaster. No, Mr. Krugman, you can’t print your way to prosperity and I don’t care how many Nobel Prizes you have. You can create an impression of wealth through creation of debt and liquidity, but that always and inadvertently collapses.
It must be a cold day in hell, but I agree with Paul Krugman warns the Fed not to “yank away the punch bowl” He is absolutely right. The US Economy and financial markets will reverse in a major way as soon as the FED raises interest rates. Yet, I disagree with the premise. The upcoming rate hike has nothing to do with inflation and has everything to do with re-loading FED’s tool set in time for the next recession.
The problem is, we are nearly there. Despite the recent all time highs in the stock market, the underlying economic indicators continue to deteriorate. The worst possible outcome for the FED is to find itself in a recession while interest rates are at zero. The thing is, that is exactly where we are today and the stock market might be finally waking up to that nightmarish scenario.
