The Fed pulled out its “nuclear” option last week when it announced coming purchases of $300 billion in long term Treasuries (and other similar extravaganzas). This is an act of total desperation. It will also serve as a key historic moment in US and global monetary economics. Let’s look closely at what it will mean to you.

Why exactly did the Fed resort to such a stunt? The stated reason is to bring down long- term interest rates in typical central planning fashion. A re-inflation of another credit bubbleis also in their pipe dreams. We all like low interest rates when we borrow,but our capacity to borrow is long gone. Unfortunately, low interest rates punish savers who should be the backbone of a healthy economy. Read the full story