Clear and Present Danger, by Sven Henrich

The Federal Reserve, hell bent on supporting financial markets, will destroy the economy. From Sven Henrich at northmantrader.com:

The Federal Reserve and other central banks represent a clear and present danger to future financial stability.

I’ve been saying for a while central banks are fueling an asset bubble and as global market distortions keep expanding week after week there’s no reason to back to walk away from that assertion but rather to stand up and scream the message from the rooftops especially now that central bankers are casually letting some key truths slip (intended or not).

Following up to the Alternative View and The Ugly Truth we got a stunning admission today from Philly Fed Chief Harker:

“The U.S. central bank may begin paring back its bond-buying program as soon as the end of this year, Federal Reserve Bank of Philadelphia President Patrick Harker said. “I could see, potentially, that occurring at the very end of 2021 or early 2022. But it is all going to depend on the course of the economy, which will depend on the course of the virus,”.“It could cause disruption in the markets if we try to do it too soon,” he said.”

There it is, the crux of it all. Not a disruption in the economy, in markets. For a central bank that claims to target the economy with its policies this statement reveals a keen awareness that markets are greatly influenced by the Fed’s QE liquidity operations, QE and otherwise, indeed are dependent on it and the fear of markets reacting is profoundly on the Fed’s mind.

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