Bonfire of the Dollar
Now I'll be the first to admit the stock market doesn't care -- and that most mainstream economists don't seem to care either. They are saying the Fed HAS to do anything and everything to save the economy from deflation. But the Fed is playing a dangerous game here.
Printing money at your central bank -- and using that newly created cash to buy your country's sovereign debt -- is the kind of stuff you typically see in emerging markets and Banana Republic countries. It's not what you'd expect the U.S. to do. And it's certainly not what you'd expect a country that is deeply in hock to foreign creditors to do. After all, the Fed is deliberately devaluing the greenback, and in the process, devaluing the bills, notes, and bonds those creditors are holding. We'll have to see if there's any pushback in the days ahead.