Quote Originally Posted by DMac View Post
By the end of this program, come 2015, the fed balance sheet will be directly responsible for 24% of the US total GDP. This is absolutely insane and (sarc) I am shocked the media is not running a scare mongering campaign - 'the end is near!!'

This is not end game. End game is still several years away. This is all still theater. I think we are now at the start of Act 2 of 3. Act 1 was the initial crash, start of the gold bull. Act 1 is now over with qe1, qe2 behind us. QE3 (to infinity and beyond) is the name of the game now and it needs to run for a bit before the end game can segue from stage left.

Endgame is when it is obvious TO ALL that the FED has destroyed the US economy.
I tend to agree with you. Inflation is certainly coming, but I believe they can maneuver through high inflation for a few years. Once inflation is unbearably high, one of two things will happen: One, the fed stops printing money and raises interest rates to save the dollar and protect the "too big to fail" banks from hyperinflationary collapse; or Two, the fed adopts a policy of hyperinflation and ensures the death of the dollar. A third option I suppose would be the gov't nationalizing the fed if they stop printing money because the threat of inflation is too high for the big banks. It's a question of fed loyalty; are they more loyal to the banks or the government?