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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: shades who wrote (51017)1/23/2006 5:10:56 PM
From: Mike Johnston  Read Replies (1) | Respond to of 110194
 
The system can only function to the extent that the Fed can keep increasing money supply at increasing pace and at the same time pull wool over people's eyes that there is no inflation.

Let money supply go down= deflation = social and economic abyss

Public wakes up = currency collapse = financial system collapse

The Fed is walking a fine line, they want to create as much inflation as they can to avoid a debt implosion, but not so much that the public will revolt and bail out of the dollar.

The misinformation campaign is one of the tools they use.