Here comes the big one. Analysts are choosing sides as if this is a financial war. We need it to keep the economy on track. We do not because it would be too much. It is helping and working. It is a sugar high. But enough of all this noise, all that matters is Bernanke's policy.
Bernanke has not shied away from the fact that he thinks that creating dollars creates demand. He has proved this because prices are up. But he wants to keep his recovery on track. He does not want it derailed. He will continue to monetize the debt, because he has no other option.
Rates can not go up, but equity must stay high for pensions to create growth. If he monetizes the debt, rates will stay low and he will debase the dollar. When the dollar loses purchasing power, equity increases because it takes more dollars to buy into the casino operation. The fiat ponzi will continue as long as possible and QE is the only way.