MOPE has backfired

The endless barrage of MOPE has made a large cross-section of the population blind to the economic realities (trends) in place.

Critical lending subgroups such as commercial and business loans, and real estate (both residential and commercial) have been showing negative year-over-year growth for months. While consumer lending remains relative strong, it too is beginning to roll over as the effectiveness of previous stimulus wanes. This roll over will show itself as negative year-over-year declines in the coming months.

The timing of the latest monetary injection is no accident.

Breakdown of Total Bank Credit: Year-over-Year Growth for Total Loans, Business Loans, Real Estate Loans, Home Equity Loans, Consumer Loans, and Cash Assets for Commercial Banks in the US.

How Management of Perspective Economics (MOPE) backfires

The unending criticism of the Fed's action on QE must have its
foundation in a belief that has been prolifically communicated to the
public by all kinds of media.

1. The US Economy is improving and will continue to.
2. Balance sheets of US financial entities have improved greatly.

Therefore they cannot see why the Fed needs to try to stimulate
anything.

1. The answer is that the US Economic recovery is stalled. Anything
going higher more slowly is starting down on the Economic Accelerator
Factor.
The Economic Accelerator Factor is a law of economic denied now for 30
years.
The answer to number one is that the US economy is looking for a lower
low on the next move.
2. The balance sheets of the US financial entities show an improved
based on a total FABRICATION, FASB selling of their soul to Wall
Street and allowing the entities in question
to make up valuation having nothing to do with true value. The fact
that a bank holds a piece of junk to the end does not justify valuing
junk at cost. That is moronic and destroys the purpose of accounting
and auditing.

MOPE has convinced every Fed detractor that all is well. It isn't.

Top Republicans and Tea Party members are afloat in public letters and
complaints to the Fed, but inherently to the people, about the Fed.
As well meaning as they are these people are, they have no idea what
dislocation they will cause immediately.
QE is not right but it is the only tool left to the Fed.
The new bodies in the legislative will prevent any fiscal measures.
If the final hit of the fan may the result of well meaning but
economically ignorant people.
Assuming the new people prevail over the Fed gold will go to
unimaginable prices as Western society implodes.
One conclusion now is neither the right nor the left has a clue of how
serious conditions are.
As I have told you for years, there is no practical solution to what
many administrations have done.

MOPE has backfired.

Jim