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View Full Version : USFED Behind the Curve by Jim Wille (Hat Trick Letter)




libertarianbob01
11-29-2007, 02:26 PM
http://www.321gold.com/editorials/willie/willie112907.html

The US Federal Reserve is behind the curve. Great consequences have resulted and are likely to continue to result. Many words can be used to describe this group. What come to mind are inept, compromised, corrupted, distracted, ill-trained, but also clueless, deceptive, myopic, overly cautious, and off the market in their focus. When they remain transfixed on economic growth versus price inflation, they are stuck in the past, in a world that no longer exists. The corrupt spew of fraudulent mortgage bonds disseminated throughout the investment community has both crippled the banking system from profound distrust, and inhibited the USEconomy from credit supply fraught with obstacles. With their irresponsibly slow reaction to significant threats to the entire economic and financial system, the hapless USFed has put several things at grave risk. Since mid-September, the USFed has cut the official rate twice by a total of 75 basis points (0.75%), and reduced the discount rate. These are minor steps. More important to the matter is the flimsy net aggregate action taken by them to provide desperately needed liquidity. Since many USFed official actions are merely temporary lending actions, withdrawn soon, whether overnight or for a full week, they can actually take away all medicine very soon after delivering it.
<The article may be copyrighted, but it is of great importance. I strongly suggest all read and understand.>