Shervin Pishevar predicts Fed will renege on promises to wind down balance sheet

Shervin Pishevar has become known as one of the go-to sources for insightful economic analyses within the world of tech. And it is a reputation well deserved. Shervin Pishevar is the current CEO and founder and Investment company, one of the most important firms in the field of venture capital for the technology world. He has also been behind the founding of some of the most successful companies of the last ten years, acting as an entrepreneur in his own right. Some of the companies that Shervin Pishevar has built and then sold include Social Gaming Network, WebOS and Ionside. He has also provided the critical early financing for the creations of Virgin Hyperloop, Uber and Airbnb.

Fed is addicted to QE

While Shervin Pishevar openly acknowledges that quantitative easing is one of the only tools in the Fed’s box that has reliably worked as advertised, he says that the overuse of quantitative easing is eventually likely to kick off severe inflation or even hyperinflation.

Shervin Pishevar warns that the Fed is beholden to the financial elite. That means that it will renege in a heartbeat on its promises to wind down its bloated balance sheet should a severe market correction manifest. This, says Pishevar, would be a huge mistake and would take the country and the dollar one step closer to financial Armageddon.

Pishevar says that the Fed absolutely must follow through on its promises to wind down its balance sheet. He says that we are currently in the midst of one of the longest economic expansions in history. If the Fed is unable to reload its most potent weapon in the best of economic times, Pishevar warns that there is no chance that it will be able to do so when the inevitable market correction and likely recession emerge in the near future.

Pishevar warns that if the Fed does not wind down its balance sheet now, while times are good, that it will inevitably turn to its favored tool once again when there is a major market correction. Only this time, the bond markets will be much more leery of purchasing artificially propped up government debt.

https://csq.com/2016/01/shervin-pishevar-funding-revolution/#.W7ugIxNKhTY