The Fed is not daydreaming ... they are hoping to avoid a nightmare

From King World News

"The anxiety surrounding the US financial sector is high on the list of things that have gold on the rise, as it continues to react to the imbalance in the US banking fundamental, as it did in 1979-81, when loan growth last outpaced growth in Disposable Income

Without growth in wage-derived income... there is no growth in lending. Without wage and/or credit growth ... there is no growth in consumption.

And, if the Fed were to pump the dollar printing press, again, it would only serve to exacerbate the rise in Gold and the Consumer Price Index, which, in turn, would put more downside pressure on 'real' wages.

This is a major conundrum for the Fed, going forward, given the job growth remains far below the level needed to match the expansion of the labor pool, let alone enough to stimulate the sustained rise in wage income.

The Fed is not daydreaming ... they are hoping to avoid a nightmare"

"Global Central Banks are tilted more towards easing in monetary policies, than they were three-months ago, particularly in the case of Europe, where a guitar solo by the ECB brought the crowd to its feet, amid the disbursement of cheap cash, and a guaranteed positive carry for three years".

Link to full article: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/2/7_Greg_Weldon_-_The_Fed_is_Hoping_to_Avoid_a_Nightmare.html