Editor's note: Robert Prechter's Latest Elliott Wave Theorist was released three weeks early, and is one of his best ever. He does not mince words and cuts straight to the bone on what the Fed is and is not willing to do to stave off a financial crisis. It is fascinating reading. I have arranged to make this brief excerpt available.
Excerpted from The Latest Elliott Wave Theorist
August 26, 2007 | Robert Prechter
Reprinted with permission
We hear it every day: "What about the Fed?" The vast majority of investors and commentators seem confident that the Fed's machinations make a stock market collapse impossible. Every hour or so one can read or hear another comment along these lines: "the Fed will provide liquidity," "the Fed is injecting money into the system," "the Fed will be forced to bail out homeowners, homebuilders, mortgage companies and banks," "the Fed has no choice but to inflate," "the government cannot allow deflation," "the Fed will print money to stave off deflation" and any number of like statements.
None of them is true.
Thanks to Chris for the following: Ron Paul has sponsored H.R. 2755: To abolish the Board of Governors of the Federal Reserve System and the Federal reserve banks, to repeal the Federal Reserve Act, and for other purposes. Click the link for more details.
What is wrong with the Federal Reserve, you ask?
Congressman Ron Paul
U.S. House of Representatives
September 10, 2002
ABOLISH THE FEDERAL RESERVE
Mr. Speaker, I rise to introduce legislation to restore financial stability to America's economy by abolishing the Federal Reserve. I also ask unanimous consent to insert the attached article by Lew Rockwell, president of the Ludwig Von Mises Institute, which explains the benefits of abolishing the Fed and restoring the gold standard, into the record. (see below)
My apologies for not keeping the site more up to date. This is a part time endeavor for me, and recently - like most Americans - my life has been rather hectic. This makes for a perfect segue into talking about why life for Americans has become so hectic.