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[nimblebear]

Seriously, there is no way they can "taper" QE. That's a fantasy, and as usual Ben was at his double speaking best yesterday. Japan wasn't reacting to Ben or China. Their run up has been parabolic, so at some point a drop like last nights was inevitable. The day of reckoning for the US markets comes when they finally acknowledge that not only is QE not working, but making things markedly worse. One merely has to look at Walmart, to understand whats really happening. No amount of QE is trickling down to the people who are continuing to lose jobs, continuing to face increased expenses, continuing to get jobs that paid half of what they paid a mere decade ago. The US consumer, except for the upper echelon, which represents less than 10% of the population, is tapped out. The US consumer had been the economic driver for the entire world. Why is China now not recovering ? Simple. US consumer is DOA. China doesnt yet have a wage base to support its prior growth and shipment of expensive junk via its over capacitied factories that used to go to the US, and it's own people not only don't want the same junk, they can't afford it even if they did want it. There is nothing strong enough organically, to offset the loss of the voracious appetite the US consumer (mostly baby boomers) had for the past 2 decades. So QE is merely debasing the currency, which ultimately makes everything more expensive. Alternatively, you can believe the lie, that is the CPI, and it's hedonistic machinations and go down in flames with it. Simple observation: just go around your own neighborhood, and observe open garages, backyards, or some day when your neighbor invites you in, check out the closets or their basement. If you think the consumer needs to buy anymore crap or junk, and isn't full to the gills, then go ahead and put more money into the market. Better yet, check out your local goodwill store on any given Saturday. Observe the continuous line of cars unloading mounds of crap at the store. That crap is barely a fraction of what people have in their homes. That crap gets sold at good will for 10 cents on the dollar. Millions of people who can't afford that crap new, buy that same crap at goodwill. These are the people who used to shop at Walmart, and Walmart used to be making chinas factories hum along at breakneck speed. Japan won't ever get out of its death spiral either, despite again abenomics. Or QE. They build or make and ship more expensive crap than china does, and ship all the machines that formerly used to go into chinas or the worlds factories. Ben knows he never should have started QE. But now he cannot stop it. He knows that too. So everything is a bunch of jawboning at an attempt to let some air gradually out of the bubble he created. Hope springs eternal, just as lies gush from the mans mouth ad nauseam. QE tapering off ? What a big fat lie ! And joke !