A Good Article About The Economy

[Yavin4]

Excerpt:

Oh, those back-slapping central bankers
The fact that the "authorities" were able to produce a sizable stock market rally last year and a strong third-quarter GDP has prompted them to do a little end-zone dancing. Chairman Alan Greenspan's recent talk at the American Economics Association meeting in California was all about declaring victory. In as many words, he said, "So what if I created a bubble and didn't pop it? The recession was painless, and I've orchestrated the next recovery." It's kind of like a kid taunting na-na-na-na-na.

That has further fueled the Fed's arrogance in maintaining that the dollar's collapse doesn't matter. Though it will come to matter, the fact that it has not thus far has emboldened the Fed to believe in its own omnipotence. Once convinced it knew the future, the Fed now appears to realize that it might not know the future, but that doesn't matter, since it thinks it can fix anything. The Fed believes it can make the economy and the stock market do whatever it wants (though I'm sure it had its doubts for a while). Likewise, the Fed believes itself powerful enough to fix the currency market whenever it deems that necessary.








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