Dan Bongino makes a simple case anyone can participate in. The TAX POLICY CENTER has this “spread sheet” (which includes Excel or PDF downloads as well) showing federal revenues corresponding to each year.
Click to Enlarge
(This is with thanks to Gay Patriot and the graph from Zero Hedge) Here is Gay Patriots summary: Fed pumping gobs of money into Wall Street? Market drifts upward. Fed stops pumping? Market doesn’t. The so-called “confidence” is drug-induced.
Credit Writedowns touches on this a bit:
…As for Bill Gross, he also said that the Federal Reserve knows that its easy money policies have a negative impact: “There are ultimately and presently negatives to these policies. The chairman recognizes that.”
On how to get out of the quantitative easing scenario that we’ve been in for so long:
“That’s very difficult, not just for the Fed, but other for other central banks. at the moment, the bank of japan is about to enter the pool, so to speak, the deep end. The Bank of England as well, perhaps, with carney indicating as much. Is it easy to get out of the deep end once you get into it? It gets difficult, because the market begins expects a constant infusion of liquidity–$85 billion a month into the bond market, which extends out into high-yield and equity credit as we move forward. Once you cut off the check writing and the purse strings, it becomes a problematic question in terms of valuation and the ability of markets, stocks, and bonds to continue on.”
On his tweet on 2/20 saying that bond vigilantes are no more and central bankers are the masters of the universe:
“They are trying to let us know that they are vigilant. We saw the minutes yesterday and they were extensive and they meet every other month or more frequently. Are they vigilant? They are in terms of their objectives. what the fed is trying to do is reflate the economy, that means not only produce 2 to 3 to 4% real growth, but a modicum of inflation in combination such so we have a nominal 5% of GDP environment. Are they vigilant in terms of moving towards that goal? Yes. Will they be vigilant in terms of having reached it then pulling back and not disrupting markets? Perhaps not. We’ll have to see going forward.”