We saw this recently when he actually got challenged on MBS and QE. He couldn’t and wouldn’t offer a rationale as to what is actually economically accomplished by it:
Yesterday he clarified his “transitory” definition :
He doesn’t know. And why would he? There is zero precedent for this much combined liquidity from the fiscal and monetary side along with a rapid economic reopening with consumers’ pockets stuffed with free money from the government.
To inflate the stocks market and the housing market was the goal. The Bernanke script:
Now the bubble has gotten so large they can’t risk anything popping it:
Why? Because popping the largest asset bubble ever would result in a catastrophic reset, not only a recession, but a depression.
The reality is debt levels have so exploded in the past 13 years any pre GFC type interest rates (which were historically low back then) would collapse the entire system. They know it. I know it, you know it. The entire system is predicated on debt expansion and cheap money to sustain it. That’s it.
This is the only choice:
…click on the above link to read the rest of the article…