And the system is on course for a dangerous, hard landing.

As far as many experts can tell, there is no right way or good way out of this crisis under Fed control, and the exit isn't likely to be smooth or pretty.

Not raising rates means yet another round of QE – QE Round 4 – which will lead to a further strain on the real economy as those on top get continued easy free, while interest rates on investments, pensions, insurance and savings sit at zero, or even go negative, destroying wealth. Derivatives continue to rule the day, and everything remains in jeopardy.

That's why the Fed will eventually raise rates, at least just a little bit. But it will be too little way too late. The Fed has, in fact, lost control, according to many experts.