The Last and Biggest Bubble

The Biggest Bubble of all TIME

The Fed Bubble that has to keep ballooning because it by definition is not accomplishing it’s goals.  Within the macro deflation scenario a blow-off spike that will pierce this bubble appears ready to breakout.  This will be negative for Bonds and stocks and positive for Gold.  A bubble made up of liquidity and low interest rates can only end with higher interest rates and lower liquidity. 

And then the Macro Deflation cycle will reassert itself again.

We read this on Reuters last night, is this the last gasp?

(Reuters) – F ederal Reserve Chair Janet Yellen vowed on Wednesday to “do all that I can” to boost a U.S. economy where unemployment is too high and inflation is too low.

“The economy continues to operate considerably short” of the central bank’s objectives of full employment and stable prices, Yellen said at a swearing-in ceremony at the central bank in Washington.