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To: entropy12

I agree,

The issue is, what’s next.

The FED, is not stupid. They are in a trap.

They are using the only tools available. Which is to fight DEFLATION by facilitating INFLATION. It really is just like Japan.

They could have stepped aside and let the market and free people figure it out, but because they CAN do something to alleviate the contraction, they DID and are DOING the only thing they can.

It’s a trap.

Look at Japan.


49 posted on 03/05/2013 10:03:47 AM PST by Zeneta (No eternal reward will forgive us now for wasting the dawn.)
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To: Zeneta

Japan is exactly where Fed is leading us to. Why can’t people learn from history? Why repeat mistakes?

Economic cycles have existed from day 1. Fed can’t suppress cycles. Nobody can. It goes against human psyche. People will keep acting based on the brains God put in their heads. They will spend too much when they can. Then it is followed by retrenchment.

The worst thing about what Fed is doing is that it is diluting value of US currency and increasing national debt. Both are bad in the long run.

But as you said, Fed is doing what it is doing because it can.


50 posted on 03/05/2013 11:30:18 AM PST by entropy12 (The republic is doomed cuz people have figured out they can get free stuff by voting democrats)
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