In the last three months, I’ve read the following from Ben Bernanke and his Fed governors:
We will continue asset purchases at the rate of $85 billion per month until the employment picture improves to pre-2009 levels;
We will taper asset purchases in the months to come, eventually ending them in 2014;
We will increase asset purchases if continued weakness in the economy justifies it;
We may taper asset purchases in the near future;
We may not taper asset purchases in the near future;
We will taper asset purchases soon;
We won’t begin tapering asset purchases until 2014.
Now I’m not entirely certain, but sometimes my hearing is a little sketchy, and for all I know, I’m hearing “paper asset purchases” as opposed to “taper”.
Essentially, the Fed can now do anything it wants with its asset purchase program, and will be able to say with a straight face, that this is exactly what was planned back in 2013.
In other words, the Fed has lost all credibility.
……read more HERE