Submitted by Gary Evans of Macromon The Tragic Consequences Of Jack Asset Monetary Policy You have to own assets to make it in the New Economy.

The Fed's increasing reliance  on the asset price channel of the monetary transmission mechanism over the past decade has been to “jack up” or inflate assets, hoping the “wealth effect” stimulates aggregate demand.   Household net worth is now at a record level and the economy is purring.

He was only one of several hundred thousand deadbeat borrowers, who gamed the system, did all the wrong things and was rewarded.

Of course,  the new QE will likely be executed through the direct purchase of Treasury securities earmarked for such programs.

End Game The result will most likely be a disaster.  The dollar will tank and its role as the world's reserve currency will be over.

Categories: ZH