Comment: I think things move quickly.

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I think things move quickly.

And quite honestly, I am scared to death.

There is another possibility here, other than what Peter is projecting. He rightly assumes that without QE, the economy will emplode. But what if that is exactly what they have decided to do?

I don't want to come across as a conspiracy nut. But what he is describing is a classic Catch 22. Permanent QE will destroy the dollar, lead to its demise as the reserve currency and to eventual hyper inflation. But no QE means depression. Perhaps the powers that be already know this, and have for a while. Perhaps this is why Homeland Security has been driving the price of Ammo out of reach, as a means of arming the bureaucracy and effectively disarming the public.

Economic Collapse makes all things possible for statists. Economic collapse and the resulting civil unrest that comes from fear and unemployment and possibly even hunger puts all options on the table, including the suspension of civil rights and perhaps even the suspension of the electoral process. Economic collapse radicalizes the public who will no doubt demand total centralized authority, if that is the only thing between them and hunger and homelessness. Remember, 70% of American families live from paycheck to paycheck.

The manipulation of the price of ammo, the creation of this massive domestic spying capability, a completely no growth fiscal policy and regulatory push; is this all coincidence? Or are we really led by a cadre of criminals that really does despise this country and its people, really wants a "change" that is beyond our wildest nightmare, and really has no intention of peaceably surrendering power.

Wasn't the election of 2012 odd? Was it really a fundamental demographic change that lead to the reelection of this President? Has any President, Democrat or Republican, even been reelected with such a dismal economic record and high unemployment rate? Obama is at 40% approval in Ohio. The economy is "better" than in November 2012. Does a country that possesses the technical prowess to seize control of car and sending it hurling at 150 mph through downtown LA also have the know-how to discretely manipulate electronic voting machines ... without a trace?

is anything beyond a Gov't that will allegedly leverage Government Agencies against citizens as a means of stymieing political opposition, collect all phone calls, emails, credit card transactions, perhaps blackmail a Supreme Court Justice (resulting in a decision that was edited at the very last moment, so that you can see the remnants of the opposite decision in the wording), intimidate harass the press, and put assault weapons in the hands of drug cartels to tip public opinion against the 2nd amendment.? Does this sound like an administration that will simply walk away in 2016?

I don't know

Maybe Berneke's little nuanced speech was one last attempt to "talk down" the system off the precipice. And maybe the subsequent free-fall in bonds was the last impetus needed to persuade the right people and put the end-game into action. A bond crash means a derivatives crash, as margins are called. Too many of the WRONG PEOPLE will lose too much. And no bailout will be politically feasible this time.

Peter assumes that QE will continue. But what if we are not driving off a cliff through mismanagement. What if, at this point, we are being pushed?