"No Exit" Is Existential for the FedRes: Bullard Forecast Higher QE Coming!

• “No Exit” Is Existential for the Fed: Bullard Forecast Higher QE Coming! 
  by http://larouchepac.com/ 
  Federal Reserve Chairman Ben Bernanke may be reading Sartre’s “No Exit” to lull himself this weekend after the last three days’ global bond-markets plunge. With the world’s five biggest central banks having 20% of global GDP in their asset books, the mere, smoothly phrased mention of a possible “exit” from money-printing sometime in the future, has triggered chaos. As noted by Ed Yardeni of Yardeni Research, the original “bond vigilante”, “Bernanke is finding that making a smooth exit from his ultra-easy monetary policies may be much more difficult to accomplish than he expected.” EIR has warned since November 2012 that “exit” from hyperinflation policy was becoming more than difficult for the Fed, threatening to wipe out its own capital multiple times and trigger the collapse of other debt bubbles it has created. Specifically, EIR said that the reaction to an attempt to end hyperinflationary printing would be so chaotic as to push the Fed right back into printing money at an even greater rate. 
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  Now St. Louis Fed president James Bullard has given an unusual immediate public dissent from the 6/19 FOMC statement, in an interview with the Post-Dispatch being cited worldwide. Bullard said Bernanke had “mistimed” his talk about an “exit” in mid-2014, and made other criticisms. But more importantly, Bullard made his own forecast of Fed policy for the immediate future. The FOMC “may need to increase monthly asset purchases” beyond $85 billion/month, he said; it “will face a decision about how to provide more accommodation”, to go higher than $85 billion/month of QE, not lower. Bullard repeated that it is an anomaly that interest rates are rising while inflation rates fall, and that the Fed lacks “the information to explain this.”
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  But it is possible Bullard concerted this “forecast” with Bernanke to try to “calm the markets”. Bank of Japan president Kuroda and European Central Bank head Draghi have also made statements since Wednesday implying more “accommodation.”
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  The 10-year U.S. Treasury yield ended Friday at 2.53%, so very unexpectedly up .95% since May 1, and .34% since June 19. The Federal Reserve’s own asset book was reported to have lost $155 billion on paper in May alone. Bond markets have fallen steadily all over the world without exception, since June 19, and most well before that.
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  Collapse triggers are now awaiting. For example, as of May 1 the Barclay’s Index of the junk bond markets had gone below 5% average yield for the first time in the index’s history, falling to about 4.75%. No-covenant bonds and “toggle” bonds were back with a vengeance, and the junk bond bubble was inflating at a 150% annual rate.

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