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Old 2012-12-14, 20:13   #1
ewmayer
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Sep 2002
Rep├║blica de California

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Default Antipodean arithmetic

Friday Humor:

In the wake of the Fed's latest announcement that it will buy upwards of $1T of US debt and other debt-related stuff per year for "as long as it takes", there's been much talk about whether the Fed has any kind of viable exit strategy.

I think I actually figured out what the Fed's "exit strategy" is:

"Keep digging, through the center of the earth if necessary, in hopes of eventually emerging on the other side."

The question is: where is "the other side" at which the eventual exit will occur? Hint: It's not in China. (Though our Chinese friends are strongly encouraged to resume robust buying of US debt in order to secure a piece of this great value proposition). No, using the publicly available geographical coordinates of the Fed-quarters building, (38.892778,-77.045833) puts the geographical antipode at (-51.107222,102.954167), which is in the southern ocean roughly midway between the SW corner of Australia and the nearest point of Antarctica.

But fear not - I'm sure Bernanke et al can cite an academic economic model which indicates that by the time their "keep digging ever faster and deeper" policy achieves a "breakthrough", there will be fertile "growthiness supporting" land as far as the eye can see at that location.
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