Yes!

I will be far away from any internet connection on August 10th, when the next Fed policy decision is announced. (I am assuming that the internet has not yet reached western Wyoming.) Thus I thought I would give you my reaction to the decision right now, before I left.

So here’s my reaction to the decision:

Very bad: The Fed does nothing significant. Maybe just a slight change in wording. The Dow falls several hundred points.

Bad: The Fed does something minor. Perhaps it promises to maintain the monetary base at current levels by purchasing T-bonds as the more unconventional assets are gradually sold off. The Dow falls slightly. (Actually, people are now so discouraged that this might be viewed as good news.)

Good: The Fed promises additional QE. The Dow rises significantly.

Outstanding: Fed announces both QE and an end to interest on reserves. The Dow soars by 500 points.

Inception: Leonardo DiCaprio penetrates three layers into the dreams of Hoenig, Fisher and Plosser. Inserts 500 posts from TheMoneyIllusion.com. Convinces the three that these are actually their own ideas. The Fed does QE, ends interest on reserves, and sets an explicit NGDP target, level targeting. The Dow soars 1000 points. We get a 1983/84-style recovery. Obama re-elected and strikes a grand bargain with the GOP to replace the income tax with progressive consumption tax.

-Money Illusion