Desperation here and abroad by the moneymen.

Here in the US, the federal reserve is accusing the people of "hoarding money".   Yep, the evil people, having no job or a part time job with lower pay and benefits along with higher Obamacare medical costs are "hoarding" money according to the moneymen / government hacks.  Of course what they really mean is that we are not taking out enough new debt for their liking.  Our "sin" is honest thrift and even that is not by choice.  People who are maxed out on credit and whose job prospects suck tend not to take on more debt!  A collapsing middle class with records of people on welfare and disability tend to try to live within their means, especially since there is a threat that a bad credit rating could affect future eligibility for benefits. 

The feral (sic) reserve is talking out of both sides of its stovepipe hat.  Bill Gross hits the nail on the head: The Keynesian "animal spirits needed for growth do not exist".   Of course, "growth" here really refers to growth of the debt portion of the money supply, not real growth.  It is like seeing a cancer get bigger on the body and referring to it as "growth".  It is exactly like that.  Credit and debt are a cancer to any working economy.  Unchecked, they eventually take over and kill the host.

In Euroland, the European Central Bank (ECB) desperately lowered its rates in order to "stave off deflation".  How much did they lower rates via this grand decree?  10 measly basis points.  Yeah, that's right 1/10th of 1 percent.  That should really stave off deflation, huh?  Everyone will rush right out and take on more debt in order to buy more crap that they don't need right now so that they can cash in on that 1/10th of 1 percent reduction in interest.  This is a joke and the con men would have been better off not to even have done it.

I hope you sense the utter desperation going on here by the powers that be.  Once the herd broadly senses it and believes that the con men have lost control, the herd will turn south on the markets in a big way.  This is what peak credit looks like.  The US fed knows that commodity prices are going to continue to creep up if they leave interest rates at zero.  For example, beef prices are at an all time high and that makes for empty stomachs.  And empty stomachs make for a disgruntled herd.  It makes for a pitchfork revolution and the con men running this show completely understand that fact as I have already shown in these pages with essays like this one from a self proclaimed "zillionaire".  Interest rates are already too low for too long.  The currency market senses that the naked shorting of the dollar (AKA credit and debt) is beginning to ease.  As modeled  in this post, the dollar breakout is now well under way even if stocks have not begun to tumble yet.

Higher interest rates are coming.  Not because the feral reserve wants them to but because they are left with no choice.  If they keep printing money in order to be pretty much the only buyer of new US treasuries then the resultant dilution and loss of confidence in the fake money will skyrocket the cost of living in the US.  What will happen if Americans have to pay $8 a gallon for gas like they do in much of Europe and the Middle East?  We are so used to having a better life than everyone else, will we calmly accept the new normalcy of mass poverty?  Something tells me that there is no chance that this ends well.