12 May 2013

 Longest term (third pane) moving average has caught up to the extreme levels of the indicator itself.

My composite indicator (fourth pane) is touching its upper 2 standard deviation bollinger band.  Something that looks like its never happened before.  Impressive what $85B a month will do.

The only problem with juicing the market with this flow is that as it grows, in order to grow at the same rate, you actually need more and more money to keep it going (fixed percentage rate growth requires greater amounts as the stock grows).  This is why any threat to curtail it is huge because at some point, $85B only will represent "steady state" and $0B is NEGATIVE for that reason.

"Physical concepts are free creations of the human mind and are not, however it may seem, uniquely determined by the external world".
-- Einstein