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  • The Fed Knows What it’s Doing

    by Founder on January 7, 2009

    in Current Politics, Government, Money/Finance, Voice of the People

    Who says the Federal Reserve doesn’t know what it’s doing? This must be a horrible rumor – because the Fed clearly knows EXACTLY what it’s doing. They are fully aware of the tremendous damage they are doing to our economy and the future of every tax paying American citizen in this country.

    Fed documents released recently gave clear insight into their full knowledge of the repercussions of the Fed’s actions as they lowered their rate to near zero. These documents make clear that Bernanke and all others involved are willingly having the American people “bite the bullet” on this one – in the long run – while saving their own hides and the country’s economy – with a band aid approach – in the short run. This is the first time in the Fed’s 95 year history that rates have been set this low. So does the Fed know what it’s doing?

    Let’s look at a couple of comments that were in the document to let you know that “yes indeed” the Fed knows what it’s doing.

    Despite this aggressive action, the Fed document states that “the economic outlook would remain weak for a time and the downside risks to economic activity would be SUBSTANTIAL“. I made the word “substantial” all capital letters because when the government says “substantial” they mean “SUBSTANTIAL”!

    The document further states that the benefits of keeping rates – “close to but slightly above zero probably outweighed the ADVERSE EFFECTS”. Again, I made the words “adverse effects” all capitals because it’s the governments way of saying there could be some HUGE problems. The results of this type of monetary policy, coupled with out of control spending and printing will cause massive inflation in the years to come. That dollar in your pocket just won’t be able to buy you what it used to – it’ll take a lot more of them to get you what you’re looking for.

    So there you go! I think you’ll agree with me that the Fed “knows what they are doing”. They are aware that their actions are creating tremendous downside risks for the economy while at the same time setting the stage for out of control inflation in the years to come.

    These people making these decisions are not going to pay for it. Probably all of their individual futures are secure and they have lots of money tucked away. But they do know who will pay for it – and they know they won’t be around to see the devastation their selfish policies have created – when 10, 20, 30, 50 years down the road the real payers of this policy will actually be living it! Unless we as a people can stand up, protest and be heard – we better fasten our seat belts – I think we may be in for a rocky ride.

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