The bigger picture

Bunnies,blowtorches, galaxies and the madness of the FED

The physical universe we inhabit is defined by 4 basic physical laws. The law of gravity, the law of electromagnetism and 2 nuclear laws ( weak and strong nuclear forces ). Even in the world of quantum mechanics possibility is defined by the boundaries that those four law impose. So for example; you can not create a solar system, which is sustainable and can support some intelligent form of life ( CNBC anchors not included in this definition) using only air and a blowtorch if you have a defined period of doing so of, lets say, 5 million years. While there is a probability for such event to occur, the probability is so close to zero that it is considered an impossibility given that after certain amount of time the blowtorch will decompose and air will, if the temperature distribution does not behave like describe by the Ricci flow formula ,become plasma.

What i just did is that i have successfully demonstrated the current FED practices using simple physics analogy. You are probably asking yourself, wasn't there a better and more related analogy i could use. Sure there is; i could put up some graphs comparing the effects of the practices the FED is using in this crisis with the effects of the same practices that the FED used in previous crisis. But that would be false for various reasons. But i will not, i will take this matter more seriously later.

What the FED is trying to do it; is using a blowtorch ( QE, repurchasing, open-window, paying-for-not-lending ) to heat up the air ( money ) in hope that it can create a sustainable and life supporting solar system ( solvent and healthy banking industry ) in a defined time period ( before the whole economy goes down the toilet because of the lack of credit ).

But the blowtorch will eventually decompose ( the practices will be needed to stop because à see plasma analogy ) the air will turn to plasma ( money will lose most of its value ) and there will be no more time ( the businesses will continue to go under during the FEDs attempt to create a solvent, sustainable and healthy banking system ).

It is not just obvious that the FED is practicing its policies on the assumption that they take affect in some other universe, but they also think that the policies they create will CREATE a new universe.

While looking at the short term, their practices are sound and make sense in the context of not creating an inflationary environment, but looking at the long term; the time is running short, the heat is getting unsustainable and the blowtorch is losing its power.

While in college my old professor told me that given the infinity of time there will be a universe which will solely consist of white fluffy bunnies which will support some life form. The probability of that occurring is 1. The probability that the FED will create a sustainable and life supporting solar system using a blowtorch and air is, unfortunately 0. If you don't believe, just turn your TV off and watch the time running out for that possibility to occur.