We've Yet To See The Fed's GREATEST Failure

With the
economic numbers getting worse and worse in the US, it’s clear that the Fed’s
policies thus far have ended in abysmal failure. Indeed, I really can’t see how
anyone could have argued the US had experienced a recovery to begin with.

§  15
million jobs have been lost since 2007.

§  Food
stamp usage is up 57% since 2007.

§  Over
one in five US mortgages is underwater.

Seeing as
the Fed’s policies were supposed to
help US consumers (we all know their real purpose: Wall Street bonuses), I
cannot see how the above numbers indicate success of any kind.

Indeed, the
other effects of the Fed’s moves have made an already difficult economic
situation far, far worse by pushing the price of food and energy through the
roof. Thus most in the US now find themselves facing stagflation in a big way.

However, the
Fed is far too myopic in its belief system to possibly consider not printing more money. After all, from
the end of QE 1 (April 2010) until the unveiling of QE lite (August 2010), the
Fed continued to juice the market every month, particularly during options
expiration weeks.

So the Fed will be juicing the system again at some
point in the future. It’s all the Fed knows how to do. And it’s all the Fed has
done since the Crisis began in 2007. Indeed, the Fed has completely and utterly
failed to address ANY of the causes of the Financial Crisis.

Yet, for the
Fed the failure to address any of the underlying causes of the Financial Crisis
has been a great success story. After all, all it had to do was pump the
financial system full of more money (increasing the amount of leverage) and
push for the suspension of accounting standards (so the crap debt is still
there, but no longer is visible).

So what do
we have? A financial system where the underlying problems still exist and the
Fed’s simply pumped TRILLIONS into the banks, resulting in commodities soaring,
the US Dollar tanking, and investors taking on even more leverage.

Since 2009,
I’ve been warning that the Financial Crisis is not over and that the next round
will be even worse than the first. THIS is the REAL problem every one should be
preparing for… not just a minor correction in stocks or the end of QE 2.
Because at some point, the Fed WILL lose control of the system again.And this
time it will be COMPLETELY powerless to re-instill confidence (the Fed’s
already spent all of its bullets during Round One).

So if you’re
not prepared to profit from the coming disaster, you NEED To download my FREE
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Good
Investing!

Graham
Summers

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Comments

[XitSam]

"However, the Fed is far too myopic ..."

The Fed is not myopic.  Unfortunately, the Fed knows exactly what it is doing.

[Conrad Murray]

Maybe this is precisely what the Federal Reserve Corporation is trying to do...