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FSN: Psychoanalyzing the Fed
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
by Charles Hugh Smith
Of Two Minds
Few of the many analyses on Federal Reserve policy consider the psychology of diminishing political and financial returns of Fed promises.
Rather than regurgitate the usual economic analysis of the Fed’s policies, let’s hazard a psychoanalysis of the Fed. Given the primacy of psychological factors in human behavior, it is astonishing how little attention is paid to the psychology of the Fed’s statements and policies.
Zero Hedge offered just such a psychological insight (with a deliciously Freudian twist) with this question: Does the Fed need to re-instill some discipline in order to regain its omnipotence? Why (For The Fed) It Is All In The Foreplay
Exactly. Subservience is a slippery slope, and if the Fed “caves in” to market demands for a massive QE campaign, then where is the Fed’s vaunted autonomy? It’s gone. So what happens in a few months when the market is once again in danger of rolling over? Will the Fed cave in again and issue more QE? If it doesn’t, the market reaction will be violently negative, and the Fed will get blamed for the catastrophic decline.
Continue Reading at OfTwoMinds.com…
2012-09-13 03:22:12
Source: http://silveristhenew.com/2012/09/12/psychoanalyzing-the-fed/
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