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Here we are again…waiting for the Fed…to do what?  Cut rates?  Done that.  Print more?  Done that too.  Buy more bonds and force interest rates to go negative?  Been doing that already…how’s that working out for people who would like to “save” as opposed to gamble?

The odds are that the Fed will do nothing today but it really doesn’t matter because everything that they’ve already done has not worked.  Think about what they have done already in the lat 4+ years.  The Treasury has borrowed and spent $5 Trillion more than we could have paid for out of taxes alone, the Fed has added another $2 Trillion to their balance sheet along with another $16 Trillion (maybe much MUCH more) in swing loans to keep the financial system upright…and…for what?  THE weakest recovery since WW II?

Let’s not forget our European cohorts, they have staggered down the same Keynesian path with an additional 3-4 Trillion+++ Euro injection.  Yes…and for what?  To now be able to see the abyss, up close, personal and without even the need of binoculars.  Europe has less than 3 weeks before Greece runs out of money (reports are now saying less than 3 weeks).  Spain now is Greece, Italy is Spain and France is Italy.  How does this situation get solved?  Hint: mark up their Gold 10 fold or more?

My point is that what had “worked so well” (sarcasm) for so long is not only not working but the more they “try,” the worse it is getting.

“It” did not and has not worked in Japan for 20 years, so why exactly do our policy makers believe that it will work here…or in Europe?  I don’t know whether it will be right after this Fed meeting, the next or the one in Nov., but the markets will sell off after one of these meetings and NOTHING that the Fed, Treasury, PPT or anyone else does is going to stop the landslide.  Someone wrote, “what if the Fed threw a party and nobody came”.  THIS, is exactly what the Fed is petrified of, Pavlov’s dog is so stuffed with debt that when Bernanke et al ring the bell, the dog won’t budge, in fact he may just get up and leave the room.  They are fast becoming irrelevant at the same time nearly everyone already knows what cards they are holding.  An unsuited deuce, seven with nothing more than a chance to bluff!  Very soon the East will call the West’s bluff by saying “show us YOUR Gold, you know we have ours because YOU sold it to us!”