However, I like the larger point – the Fed can print money but it can’t control where the money goes once printed and too much money flowing into a single asset or region can create bubbles and is more likely to. That contributed to the housing bubble here and probably around the world. Keynesian “stimulus” in the United States ensures that politicians allocate resources instead of the private sector. That always works so well, I can’t imagine why we’d want to abandon that model [end sarcasm]. Loose monetary policy and Keynesian policies are setting the course for more and more severe boom and bust cycles.