Peter Schiff - No Exit – Stage Left or Right
This week, national attention was fixated on JetBlue flight attendant Steven Slater, whose bold, creative, and controversial exit strategy could revitalize his future prospects. Not nearly as noticed was the Federal Reserve’s decision on Tuesday to avoid finding an exit strategy for its own never-ending career trap. Unfortunately, the Fed’s choices affect our lives much more than Slater’s.
Just a few weeks ago, pundits were asking how Ben Bernanke would shrink the Fed’s bloated post-crisis balance sheet. But in its August 10th decision, the Fed signaled that it would “recycle” its debt holdings; in other words, there would be no exit strategy for the foreseeable future. Given the fact that monetary stimulus will not only fail to spark a genuine recovery, but create a never-ending need for successively larger doses, Bernanke should grab a few beers and head for the nearest available emergency slide.