gold, page-29452

The Fed deliberately inflated asset bubbles via stimulus and low interest rates to create a 'wealth effect'.
I wonder what then happens as stimulus is withdrawn and interest rates rise(?)

http://economicprism.com/how-to-sti...he-whole-doggone-fiat-money-system/#more-5498

Remember, it was Bernanke who goaded Alan Greenspan to drop the federal funds rate to 1 percent and leave it there for 12 months in 2003-04 following the dot com crash.  This single act contributed to the mortgage lending bubble and bust more than anything else.
Bernanke even delivered a fearful speech on the subject in late 2002 auspiciously titled, Deflation: Making Sure “It” Doesn’t Happen Here.  There he outlined his approach with uncompromising assurance:
“[T]he U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.  By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services.”
Later, as Fed Chair, Bernanke’s big dream came true.  Following the mortgage lending bubble and bust that he’d helped Greenspan orchestrate, Bernanke was granted the opportunity to execute his mad ideas of mass money supply expansion.
Through his insane quantitative easing policies Bernanke inflated the Fed’s balance sheet from under $1 trillion to over $4.5 trillion.  In Bernanke’s mind, this was his great courageous act.  We’ve all been living with the results of his courage – low growth, low bond yields, high debt, inflated asset prices, stagnant wages, currency erosion, and more – for nearly a decade.  Quite frankly, it stinks.