Quote:All that happens when QE stops is that interest rates eventually go up because the money supply will come from investors rather than investment banks, but that's not unusual. Rates are historically low right now, but the real problem is that the demand for money is low, not because of inflation, but because of the economics of the economy being run backward. Everything that Reagan and Bush/Clinton implemented needs to be rescinded. Free trade needs to go, taxes need to be raised, and Taft-Hartley needs to be repealed.

At least we (individuals, corps and the govt) got the opportunity to refinance our debt at historically low rates and enjoy a phenomenal run in the equity mkts.  However, that too will come to a painful (though not permanent) end. 

As for the economy, GDP growth is already low and slow as we taper off the most aggressive monetary policy in history. But, if you're prepared for multiple quarters of negative GDP growth and all that goes along with an extended recession, then your fiscal plan is awesome. 

 

We can have a lot of fun donning tin foil hats and discussing what the social and political landscape of the US will look if that happens. 

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