Every Time

Every time I think of you
It always turns out good
Every time I've held you
I thought you understood
--The Babys

Peter Schiff is correct. Despite some hawkish rhetoric, the Fed can't raise rates significantly nor unwind its QE assets. Doing so would surely collapse the overleveraged, hyper financialized system.

This is, of course, an untenable outcome. 

After decades of recklessness, the Fed appears to have finally painted itself into the inevitable corner. Trillion$ of easy money and credit created to goose asset markets is now spilling into the mainstream economy, jacking prices of goods and services higher.

Fed heads face a decision. Tighten monetary policy to tame inflation but tank financial markets. Or let inflation ride.

When push comes to shove (and it will), the Fed will choose door number two every time.