Blain’s Morning Porridge Dec 11th, 2025 – The US economy, Potemkin Markets and QE“The IQ of a mob is the IQ of the dumbest member divided by the number of the crowd.”Y’day we had yet another Judder Moment for markets as the Fed surrendered to Trump and prepares to juice the markets with renewed QE. Have we learnt nothing? No, I guess we have not. Pretend and keep pretending as we enter the Potemkin Economy era. This will not end well.LINK TO PODCASTWhat should we make of yesterday’s Fed Meeting? A cut in Fed Funds to 3.50-3.75%. Huzzah! Ah, the madness of crowds… “Oh no, here we go again” said the bowl of petunias.What we witnessed at yesterday’s Fed meeting was extraordinary. A bunch of academics debating angels on a pinhead while under the presidential cosh? Were they thinking about their role as the guardians of price stability and job security.. or were they focused on the political trend. Lots of talk about elevated risks to inflation and jobs.. but lots of what looked like dither and analysis paralysis.In the ongoing absence of tangible and real data, and current politics.… lots to argue about. It’s clear what the president wants – lower rates to keep juicing the stock market into the Mid-Terms in 11 months time.. A strong stock market looks like a strong America. Simple As.Welcome to the Potemkin Political Economy…

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