We're entering what I call the moment of truth. Aside from all the noise and rumors, what do we really know? We know that Germany is slowing down, that their GDP is slumping. We know that China is slipping. We know that the world is deleveraging and deflating. We know that the Federal Reserve is deathly afraid of deflation, and is worried that with all their QE they still can't create two percent inflation. We also know that Germany is terrified of inflation and won't stand for quantitative easing or other inflationary tactics.
Therefore, the ultimate question of the hour and the month and the year is -- in the face of the ongoing deleveraging and deflation, will the Fed actually end QE, possibly triggering a stock market slump and higher interest rates?
I've puzzled over this question for hours and all yesterday afternoon. If the Fed actually shuts down QE as they say ... Log in or subscribe to continue reading.