Dr. Keynes is confused because the Fed has announced that there is no evidence that Quantitative Easing boosted the economy:
The Federal Reserve is putting some of its post-crisis actions under a magnifying glass and not liking everything it sees.
In a white paper dissecting the U.S. central bank’s actions to stem the financial crisis in 2008 and 2009, Stephen D. Williamson, vice president of the St. Louis Fed, finds fault with three key policy tenets.
Specifically, he believes the zero interest rates in place since 2008 that were designed to spark good inflation actually have resulted in just the opposite. And he believes the “forward guidance” the Fed has used to communicate its intentions has instead been a muddle of broken vows that has served only to confuse investors. Finally, he asserts that quantitative easing, or the monthly debt purchases that swelled the central bank’s balance sheet past the $4.5 trillion mark, have at best a tenuous link to actual economic improvements.
Translation: everything the Fed did either had no effect, or has actually made things worse. Just go to the grocery store and compare what you are paying now with what you paid back in 2007. If you can’t remember, just use the “Doritos Rule“.
And note how these morons think that rising prices are a sign of a healthy economy, when they are really the sign of a devalued currency.
“There is no work, to my knowledge, that establishes a link from QE to the ultimate goals of the Fed—inflation and real economic activity. Indeed, casual evidence suggests that QE has been ineffective in increasing inflation,” Williamson wrote.
Hey, Dr. Moron: QE hasn’t been effective in increasing inflation because you destroyed people’s jobs with your QE and ZIRP policies. People are living paycheck to paycheck because they 1) have to pay higher prices on everything because of QE and 2) they can’t get a decent return on their investments because you have kept interest rates at historical lows. Oh, and thanks to ZIRP people are also paying more for insurance because the insurance companies had to raise premiums to compensate for the fact that they can’t make any money investing their funds either.
The patient isn’t breathing and has no pulse. And Dr. Keynes refuses to do anything because he says the patient is just fine.