Thursday, April 3, 2008

The Federal Reserve has unlimited resources.

They can print money anytime they like....don't you wish you could!!!

The Fed's just-announced new regulatory push will help, long-term. But short-term, over the next few years, the Fed will continue to behave exactly as predicted all along for years now - pumping in liquidity and printing money like there's no tomorrow.

If Lehman Brothers, for instance, is looking like it will fail, you will see another bailout like the Bear Stearns deal. If JP Morgan goes down, the Fed will bail it out, too.

The Federal Reserve will stop at nothing to save the U.S. economy, while doing just the opposite!

That will create its own problems down the road - namely a continued long-term plunge in the dollar and much, much more inflation, maybe even hyperinflation.

Indeed, according to John Williams of Shadow Government Statistics, for the two weeks ended March 26, the seasonally-adjusted monetary base rose at an annualized rate of 20.1% from the prior two weeks. And a broader measure of the money supply is increasing at a record annual rate of over 17%!

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