Fed Will Likely Weigh Rosengren’s Call For Stimulus

I'll say it once again in case there is any misunderstanding.  Multiple rounds of quantitative easing (QE) are guaranteed, despite multiple rounds of previous declarations on economic "green shoots."  The cheerleaders on Wall Street and in Washington got it wrong--again.

As the global economies continue to tank, desperate central bankers will continue to gin up the printing press.  There is no other solution on this path to fiscal hell.

The sovereign economies are stricken with a metastasizing tumor called debt.  Yet, central bankers continue to provide drips of antibiotic monetary stimulus, trying to treat the low-grade fever symptoms, when the only cure is a gutting of the growing cancerous tumor.

Yes, debt defaults are drastic solutions, but they are also necessary to treat the malignancy.  Will it occur by design? No, there is no political will to cut off the government teat of social welfare transfer payments.  Will it occur out of necessity?  Yes, as surely as the Roman empire collapsed under its own weight of bankruptcy.

http://www.bloomberg.com/news/2012-06-01/fed-will-likely-weigh-rosengren-s-call-for-stimulus.html