THE FALLACY OF THE FED

Remember the 1990s? Remember growth in technology and manufacturing. Remember high stock market prices and the growth of the middle class? Now remember what the Federal Reserved did to reverse that? Higher interest rates and a lower Money Supply stopped growth in its tracks - and reversed it into a recession. Now, remember why (according to the Fed). To fight INFLATION

A few years later, no inflation, so the fed reverses itself and lowers interests rates - TO LEVELS UNHEARD OF. We now had low rates but no growth. But wait, we did have growth, growth in real estate values. The American Dream of owning one's own home was replaced with the American Dream of owning investment property with little money down. Now, the average American can't own their own home, but the wealthy real estate investors are doing great. Thus, we now have an economy not driven by producing or creating anything, but simply by overpricing real property.

Luckily, the Fed comes to the rescue again. After warning us about the Real Estate problem that they created, they now bring back our dear friend - INFLATION. The Fed Must Stop Inflation!

Thus, the Fed starts raising rates again. But this time, since there was little growth to slow down, and since energy prices are going up (the real cause of high levels of inflation) all this does is to send us back into a recession....and possibly the busting of the Real Estate bubble which will send many investors into bankruptcy (which is of course harder now with the laws that Bush helped to pass).

But the good news is...... NO INFLATION.

Thank goodness for the Fed!!!!!