The roller coaster economy, after taking a bit of an upturn this year, appears ready for another dive. EPJ reports on the latest from the Federal Reserve:
Instead, the Bernanke bunch will continue "Operation Twist", a looney program that results in the Fed buying long term Treasury securities, while simultaneously selling short-term securities.
Given that money supply (M2) has already been trending lower, the likelihood of another major crash in the manipulated stock market and economy has increased substantially. Such a crash will, of course, be a major problem for President Obama in his election bid.
The full Fed statement is here.EPJ, or rather it's publisher Robert Wenzel, combines the insights of Austrian school economics and financial expertise, which has resulted in amazingly accurate predictions of where the economy is headed. For the record, Wenzel called the financial crisis of 2008 on his blog, as well as the "recovery" we had back in the winter and spring.
Unless Bernanke increases the money supply soon, Obama may be a one term President. Unfortunately, Romney is the next Obama, so we are screwed either way.
Once again, note the Fed's plan to keep interest rates at zero through late 2014. I'm amazed at how few recognize the significance of this.