David Stockman, Director of the Office of Management and Budget under Ronald Reagan, on the Fed and Quantatative Easing

"An independent Fed is what we had when I was in the government.

...Today the Fed is scared to death that the boys and girls and robots
...are going to have a hissy fit.

And therefore these programs, one after another, are simply designed to somehow pacify
...and hoping to keep [prices] going up,
and that somehow that will fool the people into thinking they are wealthier and they will spend money.

The people aren't buying that.

Main Street is not stupid enough to believe
that QE2 stimulus... are making them wealthier
and so they should go out and buy another Coach bag.

This is really crazy stuff that I can't say enough negative about...

The Fed is telling a lot of lies...

...it is telling all the politicians on Capitol Hill
you can issue unlimited debt cause it doesn't cost anything.

We have $9 trillion of marketable debt.

Upwards of 70% of that has maturities of 5 years or less down to 90 days.

All of those maturities are 1% down to 10 basis points.

So from the point of view of Congress,
the cost of carrying the debt is essentially free.

When you tell politicians they can issue $100 billion of debt a month for free,
how do you expect them to do the right thing,
and ask their constituents to sacrifice...

I think the Fed is injecting high grade monetary heroin into the financial system of the world,
and one of these days it is going to kill the patient."

David Stockman
Via Tyler