Today's exchange summed up in two lines:
Q: Are You Printing Money?
Bernanke: Not Literally
Of course he is not printing money, since he cannot replicate gold with his printers. However, he is indubitably massively digitizing and printing fiat into perpetuity.
If the Fed were to tighten policy, the economy "would tank"
Should they turn the spigots off and seal the continuous flow of liquidity onto an ever filling up sink with a clogged drain (water pun need not apply), it is obvious that this temporary illusory 'recovery' would back track completely as the support levels for the financial markets, real estate, and bonds would be crushed downward and a major [temporary] deflationary correction would take place (a much needed one). This would result in heavier subsequent intervention by the Fed which would ultimately unleash inflationary madness in order to maintain the status quo.
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