Home > War, Politics and the Election 2008 >Bleak Economic Forecast
Author:J. Skousen posted by jc
Sat, Aug 25th, 2007 02:05:38 PM
Topic: Bleak Economic Forecast

Open market intervention by the fed and other central banks exceeded US$400 billion since August 8.

The European Central Bank alone has pumped in more than $200B so this is not just a US problem.

The economy, riddled with debt, wants desperately to collapse, but the Fed is trying to make sure that doesn't happen.

Each new business day the interveners pump money into various markets to produce buy signals, while skittish investors take advantage of the brief up-tick in prices to dump stocks and get their money out.

So, the see-saw continues. How long can the Fed keep priming the pump? And who gets the money first?

Even if the Fed succeeds in calming the markets this time around, the threat of collapse will always be high in the future.

Re-inflating a bubble only postpones the inevitable. Whether the Fed succeeds or fails, the result is going to be inflationary, even in a recession--what is called "Stagflation."

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