In response to an FT Markets Insight by Alberto Gallo on 31st August 2015, entitled 'Central bank monetary arsenal is increasingly ineffective'
http://www.ft.com/cms/s/0/193da290-4ef5-11e5-8642-453585f2cfcd.html#ixzz3kT5LhZ8B
"Central bankers increasingly appear to be parading in the emperor’s new clothes"
No – they’ve been naked for 6 years. It's taken that long for the little boy's immediate observation to percolate through the crowd of academics, journalists and 'talking heads' cheering them on with fingers crossed and a naive belief that a PhD in spreadsheeting is in anyway equivalent to understanding how people and capital behave in the real world.
The Bernanke Fed was driven by hubris, the Yellen Fed is driven by fear. Both are steered by economic models that ignore the effects of money, banking and debt.
QE has not been successful, except to the bankers and financiers living underneath the massive helicopter drop that has descended on Manhattan and the City.
Buckle up - whether they raise rates or don't raise rates, the damage is already done. Adam Smith's invisible hand is going to have to clean up the mess created by the central planners, and will carry out this task despite the overwhelming likelihood that 'he/she' will be blamed for having created the mess in the first place.
The main thing that is achieved by trying to abolish the downswing of a natural cycle is to make it worse when it eventually arrives - that is what the Fed have achieved.