03/31/10 - You Still Believe The Fed Can Stop Deflation?
Recent history proves that the Fed's "control" is just an illusion. Think back to the fall of 2007. The deflationary "liquidity crunch" that over the next year-and-a-half cuts the DJIA in half, decimates commodities, real estate and world markets is only starting. Almost no one believes that the crash is coming — to a large degree, because everyone is convinced that the U.S. Federal Reserve Bank, with Ben Bernanke at the helm, will never allow deflation to happen: It can just print money! Well, take a look at these two charts EWI's president Robert Prechter's published in October 2007. Read more.
