Mike Krieger Explains Why QE 3 Will Merely Keep The Lights On

This is a piece that has been festering in my head for quite some time now and I was waiting for the right moment to pen it.  That time is now.  In some ways The Bernank made a huge mistake by not launching QE3 right away when he had the chance.  Now don’t get me wrong, I am not in favor of any of this nonsense and I think The Bernank’s profession needs to go the way of the dodo bird, but I mean from the perspective of a Central Banker I think he made a big mistake by taking a breather from at least the printing and manipulations that they admit to.  The reason I say this is because up until the last month or so The Fed had been essentially telling the American sheeple that all was under control and that since The Bernank had studied the Great Depression and Japan he could save us from all the mistakes that were made back in those less enlightened times.  The Fed was saying that they could pull off the equivalent of preventing a serious hangover for someone that chugged an entire bottle of tequila.  They basically claimed to have found a way to break the laws of the universe. 
   
Unfortunately for them, the cruel forces of reality have intervened and proven that they actually did not figure out how to change the immutable laws of physics.  This truth became abundantly clear at The Bernank’s most recent press conference (which if he is smart will be his last) where it became all too clear that even he comprehends on some level that his theories and in fact his entire life has been a complete waste of time and energy.  That would be ok if he were confined to some University lecture hall; however, his lunacy was unleashed on the entire planet and we will all suffer the dire consequences of it for many years to come.  He has basically shoved another bottle of tequila down the throat of the already passed out drunkard and now he not just unconscious but is DYING. 

The response by TPTB to the utter failure of QE2 and everything else these mad intellectually bankrupt central planners have done was to try to smash commodities.  First, they released oil from the SPR in an act that more than any other proved to me we are in now in the final stage of this thing.  Not only was it pathetic in its desperation to anyone that knows the commodity markets but it was an utter failure.  For example, wholesale gasoline prices are now 5% HIGHER than they were the day before the raid.  Then just last week there was the crop planting data, which everyone I talked to involved in the agricultural sector thought was a complete sham.  Nevertheless, the “data” was used to create a 10% plunge in corn and 9% smash in wheat.  Of course, China was reported to have been a size buyer on the weakness.  How convenient.  What a disgrace.  This thing had TPTB fingerprints all over it and that is exactly why I do not participate in futures markets at all.  It’s a giant controlled game in the short-term.  Nevertheless, grains prices are of course moving back up again and I expect a huge spike in food prices in the months ahead related to weather that has already occurred around the world and the dire flood situation on the Missouri river.  More importantly, if TPTB continue to play their little games in the commodities futures markets we are going to have actual shortages.  In oil and in food in particular.  They are playing with fire.  Big time.  Reread the quote at the top by Huxley.  Whenever anyone one claims they need to do something for the “general welfare” run the other way as far and as fast as humanly possible.  That is the line of every tyrant and wanna be dictator.

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