No Reality Here

Another spew from Bernanke, otherwise known as the Mad Hatter.

The Committee will continue its purchases of Treasury and agency mortgage-backed securities, and employ its other policy tools as appropriate, until the outlook for the labor market has improved substantially in a context of price stability. The Committee is prepared to increase or reduce the pace of its purchases to maintain appropriate policy accommodation as the outlook for the labor market or inflation changes.

As zero hedge notes:

It’s a forward statement of expectation that has no basis in causation, and therefore is kind of like saying “we’ll keep buying bonds until a tornado wipes out the Capitol.” Well, a tornado may or may not wipe out the Capitol but the two are not related events.

Or, as I might have put it, less aptly but more clearly: The beatings will continue until morale improves.

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