High commodity inflation and economic depression proving Federal Reserve performed very poorly
Sam Adelton
Feb. 22, 2008

The Federal Reserve can only be blamed for what is happening in the economy. High commodity inflation and economic depression is the worst that can happen to any economy. The wages are falling in real terms and cost of living is rising rapidly downgrading the standard of living of the middle class.

The Fed action were wrong starting year 1982. It was a wrong way to take to take the economy out of recession in 1982 by increasing budget deficit and spending ruthlessly by the Regan Administration. The stock market was happy at the cost of creating the possibility a total economic collapse decades later.

Alan Greenspan was the worst Fed Chairman ever. He never cared for long-term health of the economy. He was too close top the supply side economics that is proving to be ‘supply side total nonsense’ in recent days.

Artificially lowering the rates and printing currency is not what a central bank of a superpower should have done. They created the real asset inflation bubbles in real estate, commodities and more. These bubbles are collapsing one after the other. The real estate and mortgage bubble has collapsed taking the economy with it. The stock market bubble collapsed once in year 2000 and it has started collapsing again at this time. The next one is big – the commodity bubble will collapse in 2008.

The lack of liquidity and the approach of ‘easy money creation’ to compensate the same is a sign of incompetence and ignorance by the Federal Reserve. One should wonder if Federal Reserve should be allowed to operate as a private club of major bankers. It is proved that incompetent people are leading the Federal Reserve for the last twenty-eight years.

High commodity inflation and economic depression proving Federal Reserve performed very poorly
Sam Adelton
One should wonder if Federal Reserve should be allowed to operate as a private club of major bankers. They have proved that incompetent people are leading the Federal Reserve for the last twenty-eight years.
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